Price Elasticity of Demand – Rauen Sales http://rauensales.com/ Mon, 20 Sep 2021 23:37:38 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 Let the market take care of stabilizing the fuel price boom https://rauensales.com/let-the-market-take-care-of-stabilizing-the-fuel-price-boom/ Mon, 20 Sep 2021 21:00:21 +0000 https://rauensales.com/let-the-market-take-care-of-stabilizing-the-fuel-price-boom/

Rubis’ attendant Kennedy Mutua fuels a car along Koinange Street in Nairobi. [Boniface Okendo, Standard]

The rise in fuel prices when you travel less except for funerals in the midst of a pandemic is not a paradox.

Why am I saying that ? First, the situation can be blamed on increased vaccination of the masses against Covid-19. As vaccination becomes more widespread, the prospects for a return to normal increase.

This means increased demand for goods and services. Fuel is an input in the provision of goods and services; think about transportation or raw materials in the chemical industry. Take heart, however. Rising fuel prices are a global phenomenon. The UK and US are also reporting an increase in fuel prices.

Earlier this month, China released some of its strategic oil reserves to stabilize rising prices, as reported by CNN.

China is the world’s largest importer of oil. The fact that the effect of the delta variant of the coronavirus was not devastating as expected, opens up new prospects for a return to normal.

Second, with the collapse in prices during the Covid-19 pandemic, inventories have been reduced, while investments in oil exploration and extraction have been reduced. This has lowered the prices even further.

Third, the Organization of the Petroleum Exporting Countries (OPEC) has cut production, pushing up prices.

Oil producers came together after oil prices collapsed in the wake of the Covid-19 pandemic. At one point, oil prices were negative due to low demand and lack of storage space.

Third, in Kenya fuel prices have a strong tax component at around 50 percent. The higher the prices, the greater the tax revenues.

It is questionable whether the demand for fuel will not decrease with the rise in prices. In economic jargon, fuel has low price elasticity of demand, which means that higher prices do not necessarily lead to lower demand, because fuel is a necessity.

Fourth, it has been suggested that taxes are a better alternative to debt. Have we not complained about the debt? Maybe we should celebrate our ability to fund government with more taxes!

Sixth, price controls provide an incentive for the controller to get the most out of consumers. It was assumed that price controls would stabilize prices and protect consumers. They do not have.

What price controls worked without unintended consequences? Many Kenyans today did not live in price controls until the economic and political liberalization of the early 1990s.

The rise in fuel prices in the midst of the pandemic is not a paradox. [File, Standard]

Seven, oil does not yet have enough competition. We still have too few electric cars, yet gasohol – a fuel made from a mixture of ethanol and unleaded gasoline – has never gained popularity in Kenya.

Liquefied petroleum gas is not yet a popular automotive fuel in the country. Our life is further complicated by the lack of a good public transport network, which makes passenger cars popular and increases the demand for fuel. Eighth, and more worryingly, the rise in fuel prices came just after the government declared the country’s drought a national disaster.

An increase in the price of food and fuel would affect the economy, causing the cost of living to rise sharply.

Add unemployment and economic stagnation due to the Covid-19 pandemic. Preparing for the 2022 general election does not bode well for our economy under these circumstances.

What is the solution to rising fuel prices? Politicians rush to make hay while the sun is shining.

They are calling for lower fuel prices. They do not suggest an alternative source of tax revenue from fuel. Interestingly, they are behind the fuel price controls that don’t seem to be working. The Energy and Petroleum Regulatory Authority (EPRA) sets fuel prices on a monthly basis, as stipulated in the Energy (Petroleum Pricing) Regulation, 2010.

Have I heard that we cannot benefit from the fuel subsidy because there are no regulations to implement it?

Politicians know next year’s polls are not far off. An angry electorate is the last thing politicians want to see.

Perhaps a better question is why the price of fuel was controlled in the first place. Why was the market not allowed to do its job?

My hunch is that the price of fuel would be lower if the controls were removed.

Just allow anyone who can import fuel to do so. Competition would lead to lower prices. If we don’t control the cost of intensive care unit (ICU) services, a matter of life and death, why do we control the price of fuel? By controlling fuel prices, we seem to have provided a political solution to an economic problem. This is not unique to fuel prices. Remember the cap on tuition fees?

Since the price control didn’t work, let’s try the market. With the pandemic still ongoing and economic activity declining, the price of fuel is expected to be lower than it is. Prove me the contrary!

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Spotlight of the week: Canadians spend the most on debt and the housing bubble is the second oldest https://rauensales.com/spotlight-of-the-week-canadians-spend-the-most-on-debt-and-the-housing-bubble-is-the-second-oldest/ Sun, 19 Sep 2021 17:54:58 +0000 https://rauensales.com/spotlight-of-the-week-canadians-spend-the-most-on-debt-and-the-housing-bubble-is-the-second-oldest/

It’s time for your cheat sheet on this week’s best stories.

Canadian real estate

Canadian households spend more income on debt than any other G7 country: BIS

Canadians spend significantly more income on debt repayment than their G7 peers. Households nationwide had an average debt service ratio (DSR) of 12.4 percent of income in the fourth quarter of 2020. In contrast, the United States was only 7.6 percent and the average G7 outside Canada is 6.9% of income. Canadians even spend more of their income on debt repayment than Americans did in 2008.

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Canada’s real estate bubble is the second longest in the world: US Federal Reserve

Canada is now home to the second oldest real estate bubble in the world. Data from the Federal Reserve shows that the market became exuberant 24 quarters ago. It hasn’t seen a significant correction since then, which has led to further inefficiencies. Germany is the only other advanced economy with a longer bubble. The country is a quarter older, but has seen only half of the price growth since 2005.

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Stationery! Bank of Canada researchers say supply alone can’t explain house prices

Bank of Canada researchers say supply plays a role in home prices, but not responsible for all gains. The central bank found that the median elasticity of supply in Canada is similar to that observed in the United States. They also found that the price growth in Canada is far greater than the supply could have resulted. In other words, more supply will not necessarily lower prices by much. Other factors must slow down, such as credit.

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Inflation in Canada will be high until next year, the media got it wrong: BMO

A national newspaper cited BMO to rule out high inflation, and they want to be clear – that’s a problem. The CPI has shown annual growth above 4%, and it is linked to a base effect. However, not everything is just the base effect. The bank is forecasting an average annual growth of 3% until next year, about 50% above the target. They are firmly in the “high inflation” team.

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New housing in Canada takes off slowly, but a supply tsunami is still ahead

New home starts in Canada are slowing, but there is no need to worry about a supply shortage. The seasonally adjusted annual rate (SAAR) trend fell to 283,971 units in August, from 286,076 a month earlier. This is a drop, but still significantly higher than it has been in recent years, and a little below the record. Housing starts tend to hit the market 18 to 24 months later, so we haven’t even seen the upswing contribute to supply.

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Real estate prices in Canada continue to slow as demand decreases faster than supply

Growth in real estate prices in Canada is slowing as demand declines faster than supply. CREA reported a seasonally adjusted SNLR of 72.4% in August, down from 73.6% the month before. It’s a tight market in the grand scheme of things, but there is certainly a lot less pressure on stocks. As a result, the growth rate of the typical house declined for another month.

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Canadian inflation hits highest in 20 years, boosted by housing

Canadian inflation reached its highest level in almost two decades. The annual CPI growth reached 4.1% in August, down from 3.7% the previous month. This was the highest impression since March 2003, and the shelter, one of the most important components, is the origin of the drive. There is a base effect, but going through the data we show that this is far from the only reason it is high.

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Canadian real estate sales continue to spiral down, the least in over a year

Home sales in Canada have fallen to one of the lowest levels in over a year as the market continues to cool. Seasonally adjusted sales fell to 48,379 units in August, down 0.5% from the previous month. Many attribute this to lower inventories, but ACI data shows 66,830 new listings, up 1.2% from the same period. Supply is higher on a seasonal basis, which means that’s not the reason sales are slowing down.

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Canada is facing a huge shortage of commercial workers, and it’s going to cost you more

Canada is facing a serious shortage of tradespeople, and it will cost consumers more. The projected deficit of registered apprentices is 60,000 people by 2025. This is only partially due to the impact of the pandemic, which saw a 37% drop in registrations last year. Previous years have also failed to attract enough, including a specially designed immigration program. With growing demand and such a severe shortage, the cost of their labor is sure to rise. Rising costs tend to trickle down to consumers.

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Canadian wealth soars relative to debt, but bank manager warned it could be a mirage

Canadian wealth is skyrocketing relative to debt, but a bank executive has warned it could happen and it could be a mirage. Household wealth increased 3.6% in the second quarter of 2021, the fifth consecutive quarter to see it increase. The National Bank estimates that households have seen their wealth increase by 23% since the peak of the pandemic. Debt is growing fast, but not so fast. As a result, the debt-to-asset ratio fell to 16%, the lowest since the early 2000s.

It may seem that the Magic Ticket Printer solved all the issues, but it didn’t. In a quarterly earnings call earlier this year, a BMO executive warned stocks could be “overdone.” This is a similar data problem, where equity in assets is likely inflated. The wealth effect will always be real and people will likely spend more because they feel rich. A perceived increase in wealth-related spending, which could be a mirage, can be problematic, however.

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Canadian construction investment drops for third month due to housing

Investment in construction in Canada has fallen sharply, but it is still much higher than usual. The value of investments reached $ 18.1 billion in July, down 1.7% from the previous month. Compared to the previous year, this represents an increase of 17.6%. Stat Can said the slight decrease was due to a drop in residential housing. That said, the overall investment remains very high, especially compared to previous years.

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Nursery management conference: the effect of inflation https://rauensales.com/nursery-management-conference-the-effect-of-inflation/ Fri, 17 Sep 2021 20:09:06 +0000 https://rauensales.com/nursery-management-conference-the-effect-of-inflation/

According to a press release, more than 3,500 nursery industry professionals – including growers, retailers, suppliers, landscaping professionals and others – participated in the Farwest Show 2021, which ran from 18 to August 20 at the Oregon Convention Center in Portland.

“People were happy that the Farwest Show had taken place, to have the opportunity to come together,” said show director Allan Niemi. “Our industry thrives when we can be face to face. We realize these are unique moments and we appreciate everyone who has supported The Farwest Show. “

Farwest had 49 new exhibitors this year. These included houseplant grower Cascade Tropicals (Snohomish, Wash.), Supplier of Soul of the Party plant suspensions (Tustin, Calif.), Durable goods supplier Farmers Defense (Watsonville, Calif.), Wholesaler Breeden Family Farm (Lebanon, Oregon) and durable goods. supplier Zaydoe Creative (Cannon Beach, Ore.), who showcased their new Gard-N-Hook utility tool at the show.

The tool can be used to easily hang or move nursery containers, making it ideal for nursery retailers to use and sell. Company owner Joe Acton has written numerous orders from across the country, from Northwest to New Jersey to Florida.

“I was skeptical that the show could do this for us, as it was the end of the season and our product is moving in the spring and summer,” he said. “But this was our first show, and I was amazed at what we sold to customers across the country. I’m hitting myself now, because I almost didn’t come here. It would have been a mistake.

Anna Busse, a trade show representative with wholesale plant grower Cascade Tropicals, found keen interest in her assortment of lush houseplants. “Considering all the context, we are satisfied with the participation rate. We weren’t sure people were coming, ”she said. “It was really busy for all Wednesday and Thursday.”

For Cascade, having a booth full of lush green plants made the difference. “People can see the plants in person,” said Busse. “[If they had] just saw them on our availability list, not sure if they would have been interested in them. Sometimes the plants on our website don’t look as good as they do in person.

Kaz Kosciolek and Ian Nabal, representatives of the show for agricultural clothing supplier Farmers Defense, said they had heavy traffic at their booth during the three days. They sell hats, cuffs, masks and other protective gear for farmers and gardeners. “As a first-time exhibitor, we had a great experience,” said Kosciolek. “We were very satisfied with the participants, exhibitors and buyers. It was really great for making connections with the industry, both on the business and consumer side. I really think we got our value at the show.

Derry and Celia Breeden were first time exhibitors with Breeden Family Farms, a wholesale producer based in Lebanon, Oregon. They were not only new to Farwest, but to the nursery industry. “We had a wonderful time meeting people, getting to know people in the nursery industry and making connections,” said Derry. “We were able to place orders, build our contact list and make sales. “

Another first-time exhibitor who had a positive experience was Kevin Hsu, representative of the show with Soul of the Party, a supplier of macrame hangers.

“Everything went well, from the logistics to setting up the stand,” he said. “I can’t wait to come back next year…. We did better than expected. We were here at the right time, in the right place. It was so good to see people in person and to have this interaction again.

The show took place under unpredictable circumstances, with Oregon Governor Kate Brown implementing a statewide indoor mask warrant shortly before the rally began. “It presented a challenge,” said OAN Executive Director Jeff Stone. “The Oregon Department of Agriculture helped us obtain appropriate masks for the show, which we were able to distribute to any attendees or exhibitors who did not already have one. Thanks to their partnership and their help, we were able to put on a show in complete safety. “

The next edition of the Farwest Show will take place Wednesday August 24 through Friday August 26, 2022 at the Oregon Convention Center in Portland. “We can’t wait to be back next year,” said Ian Nabal of durable goods supplier Farmers Defense.

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Canadian Vaping Association: Academics Warn https://rauensales.com/canadian-vaping-association-academics-warn/ Fri, 17 Sep 2021 18:26:01 +0000 https://rauensales.com/canadian-vaping-association-academics-warn/

BEAMSVILLE, Ontario, September 17, 2021 (GLOBE NEWSWIRE) – A group of 15 scientists specializing in addiction and tobacco research have published an essay, published by the American Public Health Association, calling for a more balanced approach of the vaping regulations. When a group of scientists join forces to advocate for the potential public health benefits of vaping, governments around the world should heed it. A revealing section of their trial focuses on how vaping can increase smoking cessation, which has been proven by several research methods including randomized studies, population studies, and cigarette sales.

The Canadian Vaping Association (CVA) has raised concerns over Canada’s current proposed flavor ban and excise tax on the grounds that such regulation would reduce the appeal of vaping and lead to an increase in vaping. smoking rates. The CVA’s concerns have often been dismissed as selfish, but the publication of this paper by highly credible tobacco and addiction researchers should cause regulators to reassess the evidence on vaping.

“A study from the Centers for Disease Control and Prevention reported that in 2018, 15.1% of smokers quit for 6 months or more using e-cigarettes, compared to 3.3% using other products from the tobacco other than cigarettes and 6.6% by not using any tobacco product, ”said the authors.

The authors cite several studies that demonstrate how vaping was found to be more effective than nicotine replacement therapy (NRT) and note that “the results of population studies are consistent with a near doubling of the success of attempts to stopping, found in randomized controlled trials, and the fact that e-cigarettes are the most used aid by smokers to quit smoking.

They leave no room for uncertainty by stating that “smokers unable to quit smoking with evidence-based cessation methods should be well informed about the relative risks of vaping and smoking and the potential of vaping to help them. to quit smoking ”.

Research indicates that cigarettes and vaping products substitute for each other, resulting in positive cross-price elasticity of demand that is sensitive to any change in the price of items. The author shares this example: “One study linked a Minnesota e-cigarette tax to increased adult smoking and reduced withdrawal, finding that taxing e-cigarettes at the same rate as cigarettes in the United States. nationwide could deter 2.75 million smokers from quitting over a decade. The likelihood of current vapers choosing to resume smoking would be a devastating setback for Canada. This price sensitivity has already been seen in Nova Scotia, as many vapers returned to tobacco or began purchasing their vaping products on the black market after the ban and taxation of flavors was put in place. artwork.

Vaping has proven to be an effective harm reduction tool for smokers looking for an alternative to tobacco. Vaping can be an effective quit smoking aid, however, taxes and flavor bans can negate any positive results that might be achieved. The rejection of science by Canadian health authorities is draining the public of accessible and proven tools. Vaping has successfully disrupted tobacco use by modernizing options for smokers. Thanks to vaping, Canada has seen remarkable reductions in smoking rates that have stagnated for years.

Contact:
Darryl Storm
Executive director
647-274-1867
dtempest@thecva.org

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Academics warn restrictive regulation has unintended consequences https://rauensales.com/academics-warn-restrictive-regulation-has-unintended-consequences/ Fri, 17 Sep 2021 18:26:00 +0000 https://rauensales.com/academics-warn-restrictive-regulation-has-unintended-consequences/

BEAMSVILLE, Ontario, September 17, 2021 (GLOBE NEWSWIRE) – A group of 15 scientists specializing in addiction and tobacco research have published an essay, published by the American Public Health Association, calling for a more balanced approach of the vaping regulations. When a group of scientists join forces to advocate for the potential public health benefits of vaping, governments around the world should heed it. A revealing section of their trial focuses on how vaping can increase smoking cessation, which has been proven by several research methods including randomized studies, population studies, and cigarette sales.

The Canadian Vaping Association (CVA) has raised concerns over Canada’s current proposed flavor ban and excise tax on the grounds that such regulation would reduce the appeal of vaping and lead to an increase in vaping. smoking rates. The CVA’s concerns have often been dismissed as selfish, but the publication of this paper by highly credible tobacco and addiction researchers should cause regulators to reassess the evidence on vaping.

“A study from the Centers for Disease Control and Prevention reported that in 2018, 15.1% of smokers quit for 6 months or more using e-cigarettes, compared to 3.3% using other products from the tobacco other than cigarettes and 6.6% by not using any tobacco product, ”said the authors.

The authors cite several studies that demonstrate how vaping was found to be more effective than nicotine replacement therapy (NRT) and note that “the results of population studies are consistent with a near doubling of the success of attempts to stopping, found in randomized controlled trials, and the fact that e-cigarettes are the most used aid by smokers to quit smoking.

They leave no room for uncertainty by stating that “smokers unable to quit smoking with evidence-based cessation methods should be well informed about the relative risks of vaping and smoking and the potential of vaping to help them. to quit smoking ”.

Research indicates that cigarettes and vaping products substitute for each other, resulting in positive cross-price elasticity of demand that is sensitive to any change in the price of items. The author shares this example: “One study linked a Minnesota e-cigarette tax to increased adult smoking and reduced withdrawal, finding that taxing e-cigarettes at the same rate as cigarettes in the United States. nationwide could deter 2.75 million smokers from quitting over a decade. The likelihood of current vapers choosing to resume smoking would be a devastating setback for Canada. This price sensitivity has already been seen in Nova Scotia, as many vapers returned to tobacco or began purchasing their vaping products on the black market after the ban and taxation of flavors was put in place. artwork.

Vaping has proven to be an effective harm reduction tool for smokers looking for an alternative to tobacco. Vaping can be an effective quit smoking aid, however, taxes and flavor bans can negate any positive results that might be achieved. The rejection of science by Canadian health authorities is draining the public of accessible and proven tools. Vaping has successfully disrupted tobacco use by modernizing options for smokers. Thanks to vaping, Canada has seen remarkable reductions in smoking rates that have stagnated for years.

Contact:
Darryl Storm
Executive director
647-274-1867
dtempest@thecva.org

Source link

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Bad weather in Brazil means more expensive coffee in Shanghai https://rauensales.com/bad-weather-in-brazil-means-more-expensive-coffee-in-shanghai/ Fri, 17 Sep 2021 07:15:54 +0000 https://rauensales.com/bad-weather-in-brazil-means-more-expensive-coffee-in-shanghai/

07:41

As extreme weather this year damaged coffee bean crops in Brazil, the world’s largest coffee bean producer, coffee bean supplies are tightening, pushing up the price of coffee beans. coffee at a six-year high and additional costs for coffee house owners in China. , one of the largest coffee consumption markets in the world.

Coffee bean prices have been rising since last November when Brazil experienced a drought, said Shang Wentao, general manager of S. Ishimitsu & Co. (Shanghai).

“And then in July, the country experienced severe frosts, which further fueled the price hike. $ 15 a pound. The company will be affected. By Brazil’s production situation, as it accounts for one-third of all beans. Analysts have lowered estimates of coffee bean production in Brazil by 20 percent Shang said.

“The most important events were the severe frosts in Brazil in July, and this impact will last for two or three years,” said Jose Sette, executive director of the International Coffee Organization, explaining the reasons for the sharp increase in price of coffee beans.

In addition to the extreme weather conditions, labor shortages and logistical challenges related to COVID-19 are exacerbating the bottleneck of coffee bean production in Brazil.

“The price for moving a container from Vietnam, which is the world’s second largest producer of coffee, has been rising steadily. Before the pandemic, the price to move Vietnam to developed countries like Europe or North America was $ 800, it is now $ 8,000. We can also see this similar situation in Brazil, ”said Sette.

Sette, also said coffee retailers will eventually pass price increases on to consumers, but how much of that depends on the price elasticity of demand between markets.

The spike in prices is likely to affect coffee lovers from next year onwards, Shang said.

Impact on Chinese cafe owners

Despite rising prices, China’s coffee bean imports more than doubled from a year ago in the first half of this year, as the country has a very high demand for coffee.

Some Shanghai cafe owners are now bracing for the impact.

“A cup of ground coffee typically uses 12 to 15 grams of beans. And to make a cup of filter coffee by hand, we use 20 grams, ”said Zhang Jian, director of Coffee Muirhead.

“For small cafes like us, that will increase costs by around 30 percent. Coffee bean processors and those who have to buy in bulk could see their costs increase by 50 percent.”

Experts expect the price increase to be long term. Zhou Xiaoqiu, a senior researcher at the Industrial Services Research Institute of Chinese securities trader Guotai Junan, said he predicted that the coffee supply would not recover until the third quarter of next year. The price will remain at a high level until Brazil begins its new harvest at the end of the second quarter of next year.

Zhou also said the impact could last even longer, as the frost may have adversely affected growing conditions for the 2022-2023 crop. “As China only produces about one percent of the world’s coffee, the result could be quite bitter for all of us,” Zhou added.

(CGTN’s Wang Ke also contributed to the story.)

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Nutricosmetics Ingredients Market Size Expected To Reach $ 8.2 Billion By 2026 https://rauensales.com/nutricosmetics-ingredients-market-size-expected-to-reach-8-2-billion-by-2026/ Thu, 16 Sep 2021 18:56:03 +0000 https://rauensales.com/nutricosmetics-ingredients-market-size-expected-to-reach-8-2-billion-by-2026/

“Nutricosmetic ingredients market”

The growing use of nutricosmetics as a dietary supplement and the growing demand for collagen for skin protection are expected to further enhance the overall development of the nutricosmetic ingredients market.

Nutricosmetic Ingredients Market The size is expected to reach $ 8.2 billion by 2026, increasing at a CAGR of 7.9% during the forecast period 2021-2026. Nutricosmetic ingredients are natural ingredients that are used to provide beauty and include essential nutrients and antioxidants. It has preventative effects on nails, skin, and weight management. Nutricosmetic ingredients are used in plant-based collagen, antioxidants, flavones, and ceramides. Nutricosmetics are consumed orally as well as in liquid form. They act as anti-oxidants by controlling and reversing the effects. It also provides anti-inflammatory protection to the skin from harmful ultraviolet rays. The increase in cosmetic assistance and the increase in regulatory standards are the main growth factors of the market. The growing use of nutricosmetics as a dietary supplement and the growing demand for collagen for skin protection are expected to further enhance the overall development of the nutricosmetics ingredients market for the period 2021-2026.

Nutricosmetics Ingredients Market Segment Analysis – By Product

Collagen held the largest share of the nutricosmetics ingredients market in 2020 and is expected to grow at a CAGR of 8.5% during the forecast period 2021-2026. This is due to the increasing demand for collagen products as a nutricosmetics. Gelatin is used to improve consistency, elasticity and stability. Gut hormones in obese people can also be normalized with the help of gelatin. It is used for skin protection, skin whitening and anti-aging, among others. It provides a good product to consumers because it is used for improving skin health and weight management. The increasing number of people opting for healthy hair is increasing the growth of the market. Collagen is estimated to register the highest CAGR during the period 2021-2026.

Nutricosmetics Ingredients Market Segment Analysis – By Application

Dietary supplements held the largest share of the nutricosmetics ingredients market in 2020 and are expected to grow at a CAGR of 8.7% during the forecast period 2021-2026. This is due to the growing awareness of the consumption of pills for nutricosmetics and the increasing incidence of skin diseases. The growing awareness regarding reducing calorie intake is also increasing the growth of the segment. The skin health segment is increasing due to the inflammatory properties of nutricosmetics for the treatment of various skin diseases. Nutriosmetics is used for weight management. It absorbs tissue secretions. The increasing use of nutricosmetics in plastic surgeries is also increasing the growth of this segment. Dietary supplements are estimated to register the highest CAGR during the period 2021-2026.

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Nutricosmetics Ingredients Market Segment Analysis – By Geography

North America dominated the nutricosmetic ingredients market with a major share of 29% in 2020. This is attributed to increasing research and development and increasing penetration of improved drugs. The increase in the consumption of dietary supplements, the increase in the health benefits of nutricosmetics, the increase in healthcare expenditure, and the improvement of the healthcare infrastructure are increasing the market growth in this region.

However, Asia-Pacific is expected to grow at a higher CAGR during the forecast period 2021-2026 due to growing awareness in healthcare and growing awareness of nutricosmetics. Increasing production technologies, increasing incidence of skin diseases, increasing demand for functional foods and beverages as well as increasing healthcare expenditure are increasing the market growth in this region.

Market drivers of nutricosmetic ingredients

Growing demand for collagen

The increasing demand for collegen increases the growth of the nutricosmetic ingredients market. Gelatin is used as a gelling agent which offers various properties for skin protection, anti-aging and skin whitening, among others. Collagen is used in the manufacture of dressings to treat severe burns. Increase treatments that involve human surgeries and skin donation sites. Collagen also plays a major role in the endomysium. Thus, increasing the growth of the Nutricosmetics Ingredients Market over the forecast period 2021-2026.

Increase in cosmetic surgeries

The increase in cosmetic surgeries is increasing the growth of the nutricosmetic ingredients market. This is attributed to the fact that nutricosmetics are used in antiaging treatments and also for cosmetic surgeries. The increasing incidence of cosmetic surgeries such as anti aging creams is also increasing the growth of the market. Injectable fillers are a cosmetic plastic surgery procedure used to treat depressions as well as wrinkles in the skin. It is injected into the skin to fill the area to be treated. Thus, increasing the growth of the Nutricosmetics Ingredients Market over the forecast period 2021-2026.

Challenges of the nutricosmetic ingredients market

Higher price of nutricosmetics and increasing competition

Some of the factors that are expected to hamper the growth of the nutricosmetics ingredients market are the higher price of nutricosmetics products and the growing competition. Lack of consumer awareness of the benefits of nutricosmetics and growing concerns associated with longer duration are expected to increase the market growth during the forecast period 2021-2026.

Nutricosmetic Ingredients Market Landscape

Product launches, mergers and acquisitions, joint ventures and R&D activities are key strategies adopted by players in the Nutricosmetic Ingredients market. In 2020, the market share of nutricosmetic ingredients is consolidated by the top ten players on the market. The 10 nutricosmetic ingredients market companies are BASF SE, Gelita AG, Croda International Plc., DSM NV and Kyowa Hakko, among others.

Key points to remember

North America dominated the nutricosmetic ingredients market in 2020 due to growing health awareness and increasing adoption rate of dietary supplements. The scope of the Nutricosmetics Ingredients market for different regions will be provided in the final report.

Increasing investment in research and development activities for the production of vitamin products and increasing use of dietary supplements are likely to promote the market growth of the Nutricosmetic Ingredients Market report.

A detailed analysis of the strength, weaknesses, and opportunities of major players operating in the market will be the Nutricosmetics Ingredients Market report.

The higher price of nutricosmetics and increasing competition are poised to create hurdles for the market for nutricosmetics.

Titles concerned:

A. Fruit and vegetable ingredients market

https://www.industryarc.com/Report/15230/fruit-vegetable-ingredients-market.html

B. Polymeric ingredients in the personal care market

https://www.industryarc.com/Report/11664/polymer-ingredients-in-personal-care-market.html

For more food and beverage market reports, please click here

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Natural Gas Reality Check: A $ 96 Billion Price Tag? https://rauensales.com/natural-gas-reality-check-a-96-billion-price-tag/ Thu, 16 Sep 2021 08:05:56 +0000 https://rauensales.com/natural-gas-reality-check-a-96-billion-price-tag/

The UN Intergovernmental Panel on Climate Change recently released the first of four reports, issuing a terrible warning about the impact of global greenhouse gas emissions. UN Secretary-General António Guterres called the report a “code red for humanity”.

For environmental activists here in the United States, the report is an opportunity to step up pressure on President Biden. They want net zero emissions and 100% renewable energy, and they want it to be tomorrow. However, their mad rush comes up against the reality of our energy needs and the high price attached to phasing out fossil fuels.

Millions of people use this affordable energy resource

Natural gas consumption is expected to increase in 2021 as millions of Americans across the country use it for cooking, laundry and heating their homes. It’s available in a jiffy and, more importantly, it’s affordable. Households that use natural gas for cooking and heating save an average of $ 847 per year compared to households that use electricity.

Likewise, businesses are also dependent on natural gas, with more than 5.4 million commercial customers using it for space and water heating, including schools, hospitals and fire stations.

It doesn’t seem to matter much to environmentalists who want to take us all on the renewable energy journey, whether we’ve bought a ticket or not. Unable to shut down every gas pipeline project, they have creatively targeted natural gas, pushing cities and states to ban natural gas hookups in new homes and construction buildings.

Berkeley, Calif., Was the first to walk out the door. Two years later, major cities like San Francisco, Seattle, Denver and New York have followed suit by enacting or proposing measures banning or discouraging the use of this critical energy resource. The aim is to reduce greenhouse gas emissions by fully electrifying all new constructions. Some policymakers go even further by proposing policies to phase out the use of natural gas in existing buildings.

Price to convert: $ 96 billion

A recent analysis by clean energy research and testing firm Pecan Street Inc. found that nearly 50 million U.S. single-family households are expected to spend thousands of dollars to upgrade their homes’ electrical panels before they move on. be able to “completely electrify” and abandon the use of natural gas.

On average, upgrades would cost around $ 2,000 per home, although the cost could reach $ 5,000 in some cases. Considering the 48 million homes that currently depend on natural gas to some extent, the cost of conversion would rise to $ 96 billion.

Additionally, a new report released by the National Bureau of Economic Research has found that such elimination will increase costs for remaining gas customers. As the report notes, “Growing utilities add new pipeline infrastructure, but utilities with shrinking customer base continue to maintain the same amount of legacy pipeline infrastructure. As a result, utility revenues increase (with an elasticity of one) as the customer base increases, but decrease by an asymmetric amount as the customer base decreases. That is, the prices for the remaining customers increase. Those who stay would see their bills increase by an average of $ 120 if 40% of gas customers withdrew; which skyrockets to an additional $ 1,600 per year if 90% of customers leave.

The irony in all of this is that natural gas is helping us meet our environmental goals as utilities take advantage of its abundance and affordability to move away from coal. According to the United States Energy Information Administration (EIA), “The increasing use of natural gas has helped reduce the overall growth of CO2 emissions in the United States, as it is the least intensive fossil fuel in carbon used in the production of electricity and heat for industrial processes ”.

Natural gas can help achieve the goal

Natural gas is uniquely positioned to play a supporting, but important, role in stepping in if renewables fail.

This is still not enough for environmentalists who continue to place their hopes of net zero emissions in renewables. Those hopes, however, collide with the reality of what can actually be accomplished by 2050 – the goal set by the Biden administration and several states to achieve the net zero-emission economy across the economy.

A Princeton University report found that to achieve this goal, the United States would need to move at a rapid pace, investing at least $ 2.5 trillion in clean energy over the next decade, installing 50 million electric cars on highways and increase wind and solar power generation capacity. quadruple, among other initiatives. This is a significant challenge for a country trying to recover economically from the Covid-19 pandemic.

A cleaner environment is a goal that most Americans share, but imposing increased costs on them and increasing the nation’s debt is not the right path. With increasing global demand for energy and clean energy technologies unlikely to keep pace, we’ll need traditional energy sources to scale up – and that’s a reality you can’t. not escape.

This column does not necessarily reflect the opinion of the Bureau of National Affairs, Inc. or its owners.

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Guy F. Caruso is Senior Advisor in the Energy Security and Climate Change program at the Center for Strategic and International Studies. Prior to joining CSIS, he was a director of the US Energy Information Administration (EIA) from July 2002 to September 2008.

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Will the Kroger / Instacart deal redefine the convenience of grocery shopping in America? – RetailWire https://rauensales.com/will-the-kroger-instacart-deal-redefine-the-convenience-of-grocery-shopping-in-america-retailwire/ Wed, 15 Sep 2021 16:58:34 +0000 https://rauensales.com/will-the-kroger-instacart-deal-redefine-the-convenience-of-grocery-shopping-in-america-retailwire/

Sep 15, 2021

Kroger and Instacart are work together to throw “Kroger delivery now“A nationwide new virtual convenience delivery service that will deliver fresh food, household essentials, meal solutions and snacks from morning to late at night in as little as 30 minutes.”

Order fulfillment will be handled by Kroger’s grocery store operations across the country. Service customers will have their choice of products from an inventory of 25,000 items. The grocery giant says its selection, pricing and speed of delivery through Instacart means consumers won’t have to compromise associated with existing convenience delivery models.

The new service will require a minimum order of $ 10 and will include a delivery charge of $ 2.99. Annual Instacart members will not have to pay for delivery. Orders can be placed through the Kroger or Instacart apps or websites.

“Kroger Delivery Now is a differentiated solution in the e-commerce industry, not just the grocery industry,” said Rodney McMullen, President and CEO of Kroger. “Our new service gives customers an additional way to shop with us and recognizes the importance of convenience and immediacy. Operationally, this service reaches up to 50 million homes and it is an expansion of our thriving e-commerce model that demonstrates a strategic interaction between our assets, our extensive store network, our chain of stores. supply, our dedicated distribution centers and fleet, joined by Instacart’s unmatched distribution model and the latest -mile technology to provide our customers with anything, anytime, anywhere without compromise.

The launch of the new service is part of Kroger’s plan to double its digital sales and profits by the end of 2023. The company saw its online business reach more than $ 10 billion last year.

Kroger will recruit its more than 2,700 stores operating under its eponymous banner and its various chain stores, including King Soopers, Ralphs, Smith’s and others, will all join in the effort.

Mr. McMullen called Instacart a strategic partner whose “industry-leading scale and ingenuity complements Kroger’s best assets, digital strategy and growing transparent ecosystem.”

The launch of Kroger Delivery Now, he said, “reinforces our commitment to be the leader in fresh produce and to accelerate digitally in an environment of heightened and sustained customer expectations for fresh produce at home. demand “.

He called the service a “game changer” and said Kroger was focused on leveraging its assets to deliver a seamless experience “in the most scalable, sustainable and profitable way.”

DISCUSSION QUESTIONS: Will the new Kroger Delivery Now service redefine what many Americans think about convenience when it comes to ordering fresh food and essential household items? Do you see this as a win / win / win for Kroger, Instacart and consumers, and what will it mean for the grocery giant’s rivals?

Braintrust

“The real change would be a functioning supply chain. If Kroger can make it happen, more power for them!”

“Instant delivery will be the new ‘green fee’ for grocery stores and perhaps dry goods retailers. “

“Where does that leave Instacart’s stated ambitions to operate its own micro-execution centers?” “

wpDiscuz

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Rent a license to drive a taxi or offer a reduction in fares to a ridesharing company? https://rauensales.com/rent-a-license-to-drive-a-taxi-or-offer-a-reduction-in-fares-to-a-ridesharing-company/ Sat, 11 Sep 2021 11:37:59 +0000 https://rauensales.com/rent-a-license-to-drive-a-taxi-or-offer-a-reduction-in-fares-to-a-ridesharing-company/

Taxi drivers in the United States pay up front to buy or rent a locket and keep the fares to themselves. With Uber or Lyft drivers, on the contrary, no medallion is required, but they have to pay part of the fares to the ridesharing companies. Sydnee Caldwell and colleagues conducted a series of experiments and found a strong aversion to the medallion rental model among drivers: 81% of them would rather pay a 25% fee rather than pay a weekly lease of $ 200 .

One difference between American taxi drivers and their rideshare counterparts is how they are paid. In most major US cities, taxi drivers must own or hire one of the limited number of taxi medallions to be eligible to drive. Most choose to rent a medallion by the team, by the day or by the week. After paying the rent, these drivers can drive as much or as little as they want, keeping any fares they charge. In contrast, drivers who drive for ridesharing companies, like Uber or Lyft, typically don’t pay anything up front. Instead, some of the fares they charge go to the rideshare company (proportional fee model).

In a recent article, Joshua Angrist, Jonathan Hall, and I compared the economic benefits and costs of taxi and rideshare compensation models. Specifically, we asked how much Uber drivers should be compensated for the loss of carpooling work opportunities (i.e. the loss of the proportional fee model) if the goal is to leave them as well as ‘before. Some drivers prefer the taxi model and therefore do not need compensation. However, these represent a small minority of carpooling drivers. For the average driver, the compensation required to make them whole is significant, as a fraction of weekly earnings.

The contrast between rental-based royalty models and proportional royalties also emerges in other contexts. For example, while some hairdressers and beauticians rent chairs by the day or by the week, others donate part of their income to the salon. Some franchise owners pay fixed royalties, while others pay royalties proportional to sales. Our analysis provides a framework that can be used to assess the relative advantages of these models.

Rental-based and proportional payments

Two parameters govern this carpooling: the compromise between taxis. The first, the elasticity of labor supply, tells us how hours react to changes in wages. All other things being equal, the hourly wage of a taxi driver is higher because he does not pay a proportional fee for each trip. If a driver works longer hours when wages are higher, he is more likely to see a benefit from the hire.

The second parameter governing this trade-off is what we call lease aversion. Lease aversion is analogous to what behavioral economists often call loss aversion. This measures the extent to which drivers are opposed to the implicit bet in the decision to buy a lease. The drivers who take the taxi contract bet that there are enough fare options to earn more than they would have in the default scenario, proportional fees. This bet may not pay off if the driver is unable to drive for personal reasons (for example, if he is ill) or if the driver’s demand is low.

The earnings accelerator

We conducted a series of experiments to estimate the value of the carpooling compensation model. In these experiments, we randomly assigned Uber fee reductions to a large sample of Boston Uber drivers. Uber has changed the way it pays its drivers since we conducted our experiments. However, at the time, most Boston drivers had to pay a flat fee of 25%. Our fee reductions have enabled these drivers to increase their income by about a third.

We also offered randomly selected drivers the option of renting a virtual locket: in exchange for an upfront payment, a processed driver would avoid Uber fees for a week. We randomly assigned the drivers to different upfront payments. At $ 15 to $ 165, our virtual lockets were significantly lower than actual locket leases.

Acceleration of earnings

We found that drivers reacted strongly to changes in their hourly pay. A ten percent increase in hourly earnings got them to drive about 12 percent more. This was true for drivers who typically drove a few hours per week (5-15 hours / week) and for drivers who drove more regularly (15-25 hours / week). Figure 1 shows the average behavior of drivers the week before our tariff increase, the weeks of treatment (a random half received the treatment in wave 1, the rest in wave 2), and the week after the treatment. This figure reveals that there was a large increase in hours while treatment was in effect, with little effect on hours worked in the week before or after treatment.

Figure 1 – Drivers increased the number of hours worked during the experiment

Our taxi experiments revealed that many drivers who would have benefited financially from our offers did not. For drivers who drove during the week of treatment, the expected average financial benefit, after taking into account the cost of the rental, among those who does not have accepting our taxi offer was $ 115 (see Table 6 in the log).

Mere inattention (not seeing or ignoring our messages) does not explain the patterns of the data. If a fraction of drivers simply ignored our messages, we would see that our predicted and observed adherence rates differed by a fixed fraction across all treatment groups. Instead, we see that the spreads are larger in groups that have faced larger virtual leases. Membership decisions are what we expect when drivers behave as if the rental offered is forty percent more expensive than it actually is.

Lease remuneration

Our experimental results suggest that the drivers in our sample – active drivers in Boston in 2016 – should be paid an average of $ 445 to switch to a $ 400 / week rental program from a proportional rate of 25%. It’s more than the size of the lease! Even with lower rents, most drivers need compensation. For example, after factoring in drivers’ aversion to rental, 81% of drivers would rather pay a 25% fee rather than pay a weekly rental of $ 200.

The aversion to leasing has not escaped the Taxis and Limousine Commissions. A 2015 New York Taxi and Limousine Commission report noted that “other [the New York Taxi and Limousine Commission] identified include the perceived inflexibility of current leases offered by lessors as well as the stress associated with starting shifts “in the red” having paid a fixed rental price at the start of shifts. Maybe the proportional model will soon be available to all drivers, whether it’s taxi or carpooling.

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To note: The post office gives the point of view of its authors, not the position USAPP – American Politics and Policy, nor the London School of Economics.

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About the authors

Sydnee Caldwell – University of California, Berkeley
Sydnee Caldwell is an Assistant Professor in the Haas School of Business and in the Department of Economics at the University of California at Berkeley. His research focuses on wage setting and competition in the labor market.

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