The Japanese beverages market volume declined in Q4 2020, driven down by strong decrease in the dairy drinks and soft drinks sectors, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘Japan Quarterly Beverage Forecast Data Book 4th Quarter 2020 (Dairy and Soy Drinks, Alcoholic Drinks, Soft Drinks and Hot Drinks)’, reveals that flavored water, squash/syrups and packaged water categories grew in Q4 2020, even as the overall soft drinks sector’s volumes declined by 6.3%.

Ravi Teja, Consumer Analyst at GlobalData, says: “The hot drinks sector benefited from more consumers staying/working from home amid the COVID-19 pandemic and trying to get through their hectic schedules using coffee and tea for rejuvenation. The sector posted a marginal rise in volumes with all three categories – hot coffee, hot tea and other hot drinks recording growth.”

Volumes of dairy drinks declined, with all categories posting strong declines in Q4 2020. Alcoholic drinks volume fell due to a sharp decline in beer consumption, even as flavored alcoholic beverages and wine saw volumes rise marginally.

Teja concludes: “The beverages industry volumes will recover in 2021, led by a strong resurgence in hot drinks and dairy drinks as the government’s planned vaccination drive takes off and brings back a semblance of normalcy, thereby reviving the ‘on-trade’ and ‘off-trade’ sales.”