Total volume sales of alcoholic drinks in Sri Lanka saw double-digit growth in 2024, while total current value sales increased dynamically.
With consistent demand for both local and foreign brands, beer continued to be the top category in alcoholic drinks. Beer recorded double-digit total volume and, especially fast, total current value sales growth in 2024. Despite rising levies, beer made gains because of its accessibility and broad cultural acceptance. Craft beer is becoming more and more popular, and imported premium lager is also gaining popularity.
Lion Brewery (Ceylon) Plc, which overwhelmingly dominate total volume share in beer, and is active in RTDs, remained by far the top player in alcoholic drinks. While it gained total volume share in beer in 2024, faster growth in spirits and wine saw its overall share drop, compared with 2023. The company's portfolio, which includes well-known brands like Ceylon Beer and Carlsberg, is widely and easily accessible in both urban and rural locations. Nonetheless, pressure from new competitors offering premium and craft beer alternatives, and other types of alcoholic drinks, exerted some pressure on the leading player at the end of the review period.
Despite a small drop in off-trade volume share in 2024, small local grocers continued to lead the distribution of alcoholic drinks, especially due to their strength in beer and wine. Supermarkets, food/drink/tobacco specialists and hypermarkets were also popular formats. Small local grocers were the principal sellers of alcoholic drinks for consumers, especially in rural areas, where access to modern retail channels is limited. However, these traditional grocery retailers came under pressure from rival formats, inflationary pressure and stricter laws.
The on-trade channel, which includes lodging facilities, dining establishments and bars, has gradually recovered from the slump in demand caused by the restrictions on consumer movement and businesses in the wake of COVID-19. The on-trade demand for alcoholic drinks has increased amid a return to and subsequent rise in socialising and tourism in the post-pandemic period. Thus, volume sales continued to grow much faster in the on-trade channel in 2024, This trend is set to continue over the forecast period, although retail is projected to remain the dominant channel for alcoholic drinks.
Total volume sales of alcoholic drinks are set to see strong double-digit growth in the shorter term, before slowing, but remaining fast, over the mid-to-late-forecast period. There is anticipated to be growing interest in premium options, while a rising trend towards lower-alcohol content options is also expected to fuel total volume and value sales. In addition to investigating newer distribution channels, including e-commerce and modern grocery retailers, companies are expected to concentrate on innovation, particularly with regard to non/low alcohol and craft products. The regulatory environment is predicted to be mostly unchanged, albeit continuous debates on taxes and limitations on alcohol advertising.
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Alcoholic Drinks
Alcoholic drinks is the aggregation of beer, wine, spirits, cider/perry and RTDs.
See all of our definitionsThis report originates from Passport, our Alcoholic Drinks research and analysis database.
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