The global economy is facing a supply chain crunch that limits product availability and affects the price of many essential goods. The world is still recovering from the pandemic and its related disruptions, making it hard to predict what the future holds.
Some experts warn of potential shortages and price increases through 2023. As a consumer, it’s important to be aware of the products that are currently in high demand and may experience price hikes in the near future.
1. Canned Goods
As the world grappled with the uncertainty and challenges brought on by the COVID-19 pandemic, many individuals began stockpiling essential goods like canned goods. This sudden surge in demand has strained manufacturers, especially the availability of aluminum. This shortage has affected everyday items such as cat food and canned beer. Unfortunately, experts anticipate that this issue may continue to linger well into the year 2023.
The year 2023 could bring about a shortage of one of the world’s most beloved celebratory beverages: Champagne. This is not only due to the ongoing drought crisis, which has affected the production of grapes but also because of a rebound in demand for the bubbly drink following the pandemic.
Holiday feasting and baking have led to a significant decrease in the overall butter supply, according to the Wall Street Journal. This shortage is believed to be the result of a natural run on the nation’s depleted butter stocks, which have been reduced to levels not seen since 2017. As a result, consumers may find it increasingly difficult to find butter on store shelves in the early months of 2023.
Hot Tip: Although it’s a good idea to stock up, be sure to only stock up on what you can realistically consume. It would be a shame to overspend on items that you will never use or eat!
4. Home Office Equipment
The rise of remote work has led to a significant increase in demand for home office equipment. More and more are creating comfortable and functional workspaces within their homes. From work desks and chairs to laptops, webcams, and printers, the demand for these products has risen dramatically. As a result, prices for these items have also gone up, and this trend is likely to continue in 2023.
5. Palm Oil
Palm oil production in two of the world’s largest sources, Indonesia and Malaysia, is expected to remain constrained in 2023. This is due to a combination of factors.
One reason is that anticipated demand from China is on the rise. China is one of the key markets for palm oil. Another reason that output in recent years has been stagnant is a pandemic-induced labor shortage, low fertilizer application, and slow expansion of new derivatives.
Despite an expected 2.5 million ton increase in palm oil output in 2023, led by Indonesia, this will not translate into much availability of palm oil for exports. This is due to greater domestic processing in Indonesia, including the move to a higher biodiesel mandate.
6. Wheat Products
United States’ wheat production is currently facing significant challenges due to unprecedented dry weather conditions, as reported by Reuters and the US Department of Agriculture. As of October 2022, more than 80% of the country is experiencing abnormally dry conditions, raising concerns for the 2023 harvest. This is a serious issue that could have a significant impact on wheat production and the overall agriculture industry.
The global economy is facing a supply chain crunch that could affect the availability and prices of many essential goods in 2023. Be aware of products currently in high demand; stock on these items now because in the near future they may experience price hikes. However, it’s important to note that predictions of future events and prices can be uncertain, so it’s always good to be prepared with a safe stock without overbuying.