The pandemic has had a major impact on consumer spending. The most affected categories were hotels, alcohol, tobacco and clothing, but spending was more on food.
“They reduced their consumption of soft drinks and juices, but not their morning cup of tea or coffee,” according to the Ministry of Statistics and Programs Implementation (MoSPI) report on consumption over the past year. the 2020-21 financial year.
“Food and domestic utilities were the only product groups to show a positive growth rate over the prior, non-pandemic fiscal year (2019-20), while spending in all other categories declined. “, further states the report.
Bengaluru-based Tiffin service company, Sprink, reported a similar trend.
Kumar Setu, co-founder, Sprink, “The pandemic is helping people understand nutrition facts. Whether they cook at home or order from meal delivery services. Homemade foods are the ones that are transforming the industry. Those who don’t want to cook, have busy schedules or are away from home, such as economic migrants, office workers, working parents, the elderly and students, order meals on food platforms. home cooked meals.
According to MoSPI statistics, the most affected consumer sectors during the pandemic year were restaurants and hotels, clothing and footwear, durable and semi-durable goods, transportation, alcoholic beverages, tobacco and narcotics (intoxicants), and furnishings and recreation. sectors.
These sectors recorded a drop in growth of more than 10% in 2020-21 compared to 2019-20. Over the same period, overall consumption in these sectors fell by 6%.
READ MORE: Why fashion design is an attractive career option even during a pandemic