Market Insights: Coronavirus

3M product trading in coronavirus market

The 3M company, one of the United States’ well-established corporations which is a famous manufacturer of N95 filtering face masks.

N95 respirators became so popular during the time of COVID pandemic as they are capable of filtering out 95% of large and small particles, including certain types of bacteria. Those considered to be very essential in occupations related to construction and most importantly in medicine. Not only masks the 3M also produces over 60,000 of products related to worker safety, US health care, and consumer goods. under several brands with a client base spread all around the globe.

During the Covid-19 Pandemic

As the Coronavirus pandemic started to spread in early 2020, most of the businesses suffered immensely and the focus is shifted to the companies like 3M as the demand for face masks rose sharply. The explosion of face mask demand provided a boost for 3M as they sold nearly from $100 million to $325 million in face masks prior to the outbreak of the disease and the outbreak nearly added another $300 million to 1 billion in sales. Comparatively, during the the 'swine flu' H1N1 virus pandemic in 2009-2010, 3M's sales were boosted by 350 million U.S. dollars.

Increase Production

Even though the face masks are a tiny portion of 3M’s overall business, the product gained a tremendous amount of attention to the company. And in early 2020 health officials worried there were not nearly enough of products so that 3M doubled global production to 1.1 billion per year from about 400 million per year, and the company said in late March they again doubled the production to 2 billion. As for the increased demand for its face masks in China, the CEO stated that it was challenging but the demand for the facemasks can not actually outstrip the loss of businesses caused due to the shutdown of the Chinese economy.