Hong Kong’s beverage industry saw volume decline by 5.3% during Q4 2020 owing to volume declines in all sectors, except dairy drinks, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Hong Kong Beverages Consumption Trends and Forecasts Tracker, Q4 2020 (Dairy and Soy Drinks, Alcoholic Drinks, Soft Drinks and Hot Drinks)’, reveals that volumes in soft drinks, hot drinks, and alcoholic drinks declined significantly in Q4 2020.
Even strong growth in enhanced water and flavored water categories could not offset the overall volume decline in the soft drinks sector that declined by 7.3% in volume, dragged down by a sharp fall in carbonated drinks and iced/RTD tea drinks.
Biswarup Bose, Consumer Analyst at GlobalData, says: “The desire for healthy hydration amid the COVID-19 pandemic, which led consumer inclination for products that are perceived to be ‘better-for-you’, may well have benefited both flavored and enhanced water categories.”
Dairy drinks posted a growth of 3.2% in Q4 2020, led by strong gains in evaporated milk, white milk, and condensed milk. Soy milk, on the other hand, was the only category to see a volume decline in the same period.
Alcoholic Drinks’ volumes also suffered a fall, driven down by declines in beer, cider, and flavored alcoholic beverages (FABs).
Mr. Bose concludes: “The anticipated gradual return to normalcy and a revival in the economy post the government’s planned vaccination drive are expected to help revive the fortunes across all beverage sectors with the re-opening of on-premise channels and easing of restrictions on social gatherings.”
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