Coronavirus Masks Could Become $9 Billion Market Says Analyst

With the outbreak of the coronavirus this year and many cities across the nation making masks mandatory, it is no surprise that face masks have become a big sales item.

According to a KeyBanc analyst, the market for face masks could become a $9 billion opportunity if governments begin to crack down on facial coverings in public.

KeyBanc analyst Edward Yruma wrote that the market for masks could be worth as much as $9 billion and advised clients that stocks like Etsy and Gap could see upside as health officials reiterate the role of masks as a preventative measure.

Already the CDC has recommended that people wear the masks and 20,000 shops have began to sell them on Etsy according to the company’s CEO Johs Silverman.

“Our sellers are able to produce hundreds of thousands of masks per day,” said Silverman on “Closing Bell” recently.

Etsy began to see “overwhelming demand” for masks from shoppers last week after the Centers for Disease Control and Prevention began recommending Americans wear a cloth face covering to protect against the coronavirus, said the CEO.

There about 2.7 million Etsy sellers “who are crafts people,” Silverman said.

This has become an opportunity for Etsy sellers who may be experiencing a decline in demand for their other products to continue generating income, Silverman said.

“For example many people might be making wedding dresses, and the wedding season is pretty hard-hit right now so they can shift to making fabric face masks instead,” said Silverman.

Silverman pointed out however that masks bought from Etsy will not prevent people from contracting COVID-19.

“The CDC itself has said a fabric face mask is probably better than nothing but please do not assume that this keeps you or the people around you safe. It’s an additive measure. It’s not preventative,” he stressed.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.