26 Mar 2021
Posted in Consumer
South Korean beverages industry witnesses marginal volumetric fall in Q4 2020, says GlobalData
The South Korean beverages industry volumes decreased by 1% in Q4 2020 on a year-on-year (Y-o-Y) basis. Led by growth in flavored milk, evaporated milk, condensed milk and white milk categories, the dairy drinks sector saw volumes rise by a moderate 1.7% in Q4 2020 compared to Q4 2019, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘South Korea Beverages Consumption Trends and Forecasts Tracker, Q4 2020 (Dairy and Soy Drinks, Alcoholic Drinks, Soft Drinks and Hot Drinks)’, reveals that dairy drinks and soft drinks sectors posted a rise in volumes in Q4 2020, albeit marginal.
Strong growth rates posted by enhanced water, iced/RTD coffee and iced/RTD tea categories helped offset sharp declines in flavored water, juice, nectars and sports drinks categories, enabling soft drinks to grow by a moderate 1.3% in the quarter on a Y-o-Y basis.
Anchal Bisht, Consumer Analyst at GlobalData, says: “The desire for healthy hydration amid the COVID-19 pandemic and inclination for products that are perceived as ‘better-for-you’ drinks, may well have benefited growth in both the packaged water and enhanced water categories.”
Alcoholic drinks’ volumes also suffered a fall of 1.3% in Q4 2020 despite moderate gains in beer and wine volumes. Spirits posted the steepest decline among other categories of alcoholic drinks, followed by a fall in rice wine, cider and fortified wine volumes.
Ms Bisht concludes: “Leading the global COVID-19 battle early on, South Korea did not suffer any ‘out-of-control’ outbreaks of the virus due to stringent social distancing guidelines and mask mandates. The country launched its vaccination drive in mid-February 2021, which is anticipated to help revive economic activities through easing of restrictions such as social distancing, thus helping a resurgence in the sales of beverages.”