India: On-trade beer sales down 11.7% in last quarter of 2020

Despite the Indian government’s efforts to the drive the economic activity, people remain reluctant to travel and dine-out, driving down the ‘on-trade’ volumes of beverages, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘India Beverages Consumption Trends and Forecasts Tracker, Q4 2020 (Dairy and Soy Drinks, Alcoholic Drinks, Soft Drinks and Hot Drinks)’ reveals that ‘dairy & soy drinks & milk alternatives’ sector was the only one to see its volumes rise in Q4 2020, led by strong growth in fermented milk, flavored milk and white milk categories.

Soft drink volumes posted a sharp decline of 24.1% in Q4 2020 over the same quarter of the previous year with several categories registering double digit declines, even as enhanced water grew by 4.7%. Bulk/HOD water also fell by 32.5% in the same period.

Biswarup Bose, Consumer Analyst at GlobalData, says: “The fall in the tourism industry in the wake of the COVID-19 pandemic led lockdowns and travel restrictions coupled with consumer reluctance to travel even after the easing of restrictions have contributed to the strong reductions in the ‘on-trade’ channels.”

Alcoholic drinks also suffered due to the lack of enthusiasm among the consumers to step-out and socialize, with the volumes declining by 7.7% led by 11.7% fall in beer consumption. Wine, on the other hand, was the only category to witness volumes rise, albeit marginally, at 1.3% in Q4 2020.

Bose concludes: “The beverages industry will see a revival in 2021 with the Indian government’s vaccination campaign taking off successfully, boosting the consumer confidence in a gradual return of normalcy, thus enabling them to socialize, travel and dine-out, spurring the sales of beverages.”