Bigger firms scoop up more market share during Covid-19 pandemic

Market concentration in key sectors, measured by HHI, reached a new high in FY21

Top companies have grabbed a bigger pie of their sectors in the pandemic period, leading to a further rise in market concentration in many industries as measured by the Herfindahl-Hirschman Index (HHI).
 
The HHI score, which indicates competitive intensity in an industry (or a lack of it), reached a new high in FY21 as bigger firms raised their revenue market shares either organically or through mergers and acquisitions.
 
A higher HHI score indicates a rise in market concentration in favour of a few firms while a lower score means that the industry’s revenue is more evenly divided among