Invest
Alcohol industry did not profit from the pandemic as was predicted
The COVID-19 pandemic was not the win for alcohol distilleries as previously predicted, with widespread fears about soaring alcohol consumption now proven baseless, new research has found.
Alcohol industry did not profit from the pandemic as was predicted
The COVID-19 pandemic was not the win for alcohol distilleries as previously predicted, with widespread fears about soaring alcohol consumption now proven baseless, new research has found.
Experts predicted panic buying in liquor stores and screenshots of Zoom happy hours, in the early part of the COVID lockdown, were signs that Aussies were increasing their alcohol consumption.
However, poll data released by Roy Morgan has shown that alcohol consumption continued to fall in 2020.
In fact, back in 2006, when Roy Morgan began collecting this data, 73.5 per cent of Australians enjoyed a drink in an average four-week period. In the 12 months to September 2020, that was down to 66.4 per cent.
“There was a lot of hypothesising about the changes to various purchasing and consumption habits that might result from the pandemic,” Michele Levine, Roy Morgan’s CEO, said.
“Our data shows the dire warnings about huge rises in the level of alcohol consumption fall into that category.”
On the other hand, online retail sales boomed, reaching $15.6 billion in 2020, a 26.7 per cent increase on 2019.
According to Ms Levine, online sales came about as a result of consumers changing their drinking habits.
“There are two factors at play here, one obvious, one less so. First, people might not have been drinking more, but they were certainly drinking differently, with the option to go out to bars or have wine over dinner much reduced or simply not available to millions of people for months at a time.”
“The less obvious factor is the move towards premiumisation we’ve seen among the high-spending group of ‘NEO consumers’ identified in our research. This significant part of the population isn’t drinking more, in fact many are drinking less, but they are spending more on higher quality product,” Ms Levine concluded.
About the author
About the author
Spending
Aussies’ spending on subscription rises, but will it stick?
Aussies carved out a greater slice of their spending budgets when it came to streaming services during the pandemic. ...Read more
Spending
Qantas announces $2.3bn loss but plans to be flying again by Christmas
Australia’s national carrier has revealed the devastating impacts border closures have had on the company, while noting a possible return date to international operations in its full-year market upd...Read more
Spending
Will your frequent flyer status be impacted by COVID?
In the latest bid to kick-start the travel industry post-lockdowns, Australia’s largest airline has announced that it is rewarding its frequent flyers by extending their status. ...Read more
Spending
‘Technology, not taxes’: Why not both?
The government has joined the rest of the world in looking to offset carbon emissions, albeit through technology, not taxes, despite the possibility that positive taxes and incentives could potentiall...Read more
Spending
Social media spending balloons to $118bn
Australians are spending a whopping $118 billion on discretionary items through social media and apps, fresh figures have revealed. ...Read more
Spending
Why payphones are set to become free
Australians will now be able to make free calls from any Telstra payphone under a new initiative aimed at helping those who are in need, Telstra’s CEO has revealed. ...Read more
Spending
7 surprisingly simple ways to save money and help the environment
The rising costs of living is providing consumers with a rare win-win scenario by saving money and helping the environment. ...Read more
Spending
How much are you wasting on unused subscriptions?
Australians are continuing to pay for subscriptions they are not using, costing households up to $2,000 a year, new banking figures have revealed. ...Read more
How the post-lockdown period will influence property, what the soaring NFT market means, and defining financial wellness
Listen now
APRA’s mortgage crackdown, the power of DeFi and last-minute tax tips
Listen now
What to expect as the end of lockdown looms? Will the Stage 2 tax cuts boost your tax return? Where should investors be looking as the economy reopens?
Listen now
Could property prices inflate by another 20%? What’s happening in recent dividend announcements? Did your fund fail the YFYS test?
Listen now
Spending
Aussies’ spending on subscription rises, but will it stick?
Aussies carved out a greater slice of their spending budgets when it came to streaming services during the pandemic. ...Read more
Spending
Qantas announces $2.3bn loss but plans to be flying again by Christmas
Australia’s national carrier has revealed the devastating impacts border closures have had on the company, while noting a possible return date to international operations in its full-year market upd...Read more
Spending
Will your frequent flyer status be impacted by COVID?
In the latest bid to kick-start the travel industry post-lockdowns, Australia’s largest airline has announced that it is rewarding its frequent flyers by extending their status. ...Read more
Spending
‘Technology, not taxes’: Why not both?
The government has joined the rest of the world in looking to offset carbon emissions, albeit through technology, not taxes, despite the possibility that positive taxes and incentives could potentiall...Read more
Spending
Social media spending balloons to $118bn
Australians are spending a whopping $118 billion on discretionary items through social media and apps, fresh figures have revealed. ...Read more
Spending
Why payphones are set to become free
Australians will now be able to make free calls from any Telstra payphone under a new initiative aimed at helping those who are in need, Telstra’s CEO has revealed. ...Read more
Spending
7 surprisingly simple ways to save money and help the environment
The rising costs of living is providing consumers with a rare win-win scenario by saving money and helping the environment. ...Read more
Spending
How much are you wasting on unused subscriptions?
Australians are continuing to pay for subscriptions they are not using, costing households up to $2,000 a year, new banking figures have revealed. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
