New Year’s Eve in India witnesses a significant surge in spending, particularly on non-vegetarian food and alcohol. Non-vegetarian dishes, entrenched in cultural traditions and symbolism, are a staple for celebratory feasts. Alcohol consumption also spikes dramatically, fueled by social norms and aggressive festive marketing. This article examines the spending patterns associated with these and other products during New Year’s, aiming to uncover whether this period truly triggers excessive expenditure.
How much money is spent on non-veg during the New Year?
The New Year season marks a time of indulgence for many families in India, where food plays a central role in celebrations. Non-vegetarian dishes, considered staples in festive feasts, often drive spending during this period. While precise figures may vary regionally, a closer analysis of spending habits reveals consistent patterns influenced by cultural preferences, market availability, and household budgets.
In regions like Kochi, seafood dominates New Year celebrations and constitutes a significant portion of families’ festive budgets. The high prices for premium fish varieties, such as seer fish at INR 850 per kilogram and yellowfin tuna (chura/kera) at INR 300 per kilogram, do not deter consumers. A family of five can easily spend INR 2,000 to INR 3,000 on seafood alone at home for a seafood-heavy celebration meal, hence its strong cultural value.
At similar times, Christmas and New Year demand poultry and eggs throughout Goa and the rest of the country. For any regular family, chicken is largely in the range of INR 100/- per kilogram to INR 150 per kg or average spending could be INR 500 – INR 1000 depending upon the menus available on the table. Eggs, besides mutton or pork, pushed up the overall expenditure, wherein for items such as these, there can be an additional INR 1,000 to INR 1,500 spent.
Non-vegetarian thalis, incorporating chicken, mutton, or seafood nationally, represent a more affordable way of gorging on festive fare. Meals in December get cheaper due to cheaper poultry prices and can help families enjoy the variety for less. However, for those who would love their mutton at ₹600 per kilogram, that is consistently so; it turns out to be a tad pricey.
In all, the average family will spend between INR 2,500 and INR 5,000 on non-vegetarian food for New Year celebrations, depending on their preferences and regional price variations. This expenditure reflects a broader willingness to prioritise food in festive budgets, balancing indulgence with practical financial considerations. Even though a few households may adjust their expenditure according to price trends, the cultural significance of an elaborate meal ensures that non-vegetarian foods will always remain the mainstay and a favourite component of New Year celebrations.
How much alcohol is consumed during the New Year?
Alcohol consumption during the festivities of New Year is generally at an all-time peak, often higher than all other holidays. These behaviours are due to social demands placed on people, lengthier celebrations, and the desire to enjoy the New Year.
The National Institute on Alcohol Abuse and Alcoholism (NIAAA) defines binge drinking as consuming five or more drinks for men or four or more for women in about two hours. NIAAA recognises this as a common pattern during New Year celebrations.
Reports indicate that 57% of men and 40% of women engage in binge drinking during the holiday season, with New Year’s Eve representing a peak in this behaviour.
In 2018, a report indicated that around 47% of adults in the United States of America drank on New Year’s Eve. Many drank themselves into alcohol poisoning. A similar pattern has been noticed in European countries. In Australia, New Year’s Eve is among the highest-ranked alcohol-selling days. In India, the trend of alcohol consumption has dramatically increased over the years, which goes along with regional trends in an essential rise in liquor sales.
Delhi:
Delhi saw an incredible increase in liquor sales on New Year’s Eve in 2022, and the city registered a record with the sale of 20.30 lakh bottles of alcohol in a single day. The amount realised from the sale was INR 218 crore, which indicates that the capital is quite significant for the festive alcohol market. The statistics show the increased demand for liquor during the holiday season in Delhi. The record-breaking figures highlight the trend of increased alcohol consumption through both consumer spending and celebrating fervour year over year.
Telangana:
In Telangana, alcohol sales worth INR 400 crore marked the New Year’s Eve of 2023. The number reflects a massive scale of liquor sales in the state, underlining that the central part of any celebration on holidays is alcohol. Rising alcohol sales in Telangana mirror trends witnessed across other metropolitan areas. The expenditure at such a level showcases how alcohol forms a part of celebrations for the new year in the region.
Bengaluru:
A similar boom was seen in the consumption of alcohol on the eve of New Year 2021, as 2.25 lakh carton boxes of Indian-made liquor were sold on December 31. This figure marginally went up to 2.39 lakh carton boxes on New Year’s Eve itself. The growth between December 31 and New Year’s Eve points to a tendency for prolonged celebrations. The heavy sales volumes show that Bengaluru is the epicenter of nightlife and party culture.
Lucknow:
Lucknow saw an interesting exception to the usual high level of alcohol consumption in 2019, when New Year’s Eve fell on a Tuesday—a day many, especially in Hindu culture, consider inauspicious. The cultural association of Tuesdays with abstinence meant that alcohol and non-vegetarian food sales were significantly lower. Partying and celebrations were more subdued than usual.
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What are the other products that see a rise in sales?
Besides alcohol and non-vegetarian food, other industries also see increased sales around the New Year, owing to high consumer demand and festive spirit. The following are the industries with a lot of sales during the New Year period.
Electronics and Gadgets:
Demand for electronics, such as smartphones, laptops, smart TVs, and wearable devices, is one of the major contributors to this surge in sales during the period. The New Year season coincides with year-end deals and discounts offered by retailers, making it a prime time for consumers to upgrade their gadgets. This trend is fueled further by high consumer interest in gifting electronics, often seen as premium and desirable presents for loved ones.
Fashion and Apparel:
The fashion segment also sees an upswing at this time as consumers buy clothing, footwear, and accessories for New Year celebrations and gifting purposes. Festive collections, partywear, and winter clothing are in high demand as brands take the opportunity to launch attractive discounts and exclusive collections.
Online Subscription Services:
Digital subscription services, from streaming platforms, fitness apps, and e-learning platforms, also report an increase in sign-ups for this time. Many companies also offer New Year deals that attract users looking to enhance their entertainment, fitness, or skill development for the upcoming year.
Home Decor and Furnishings:
Products under home improvement, such as decor items and furnishings, go up in demand as the people prepare to host some gatherings or give their homes a refreshed look for the New Year. Decorative lighting, furniture, and kitchenware are among the common purchases during this time.
Beauty and Personal Care:
Beauty and personal care categories grow at a healthy pace since people take extra care to groom and present themselves during the festival seasons. Skincare kits, cosmetics, and perfumes are often bought for personal consumption and as gifts. Promotions by major brands also enhance sales in this category.
Fitness and Wellness Products:
With the arrival of New Year resolutions, fitness and wellness products, including gym equipment, yoga mats, fitness trackers, and nutritional supplements, experience a surge in sales. This trend reflects a consumer focus on health and self-improvement as they prepare for the upcoming year.
Gifts and Festive Hampers:
Gifting trends contribute to a significant sales surge during the New Year season. Pre-packed gift hampers featuring chocolates, gourmet food items, or personalized products are especially in demand. Gift cards also become a very flexible gifting option for friends and family.
Although it is extremely difficult to narrow down the increase in sales during the New Year, the relevant data pertaining to the increase in sales during the festive season shines some light on how much expenditure could happen during the New Year.
In general, during the festive season, the sale of smartphones increased by 65%, the sale of Refrigerators increased by 30%, the purchase of washing machines by 11%, the sale of Microwave Ovens increased by 7%, the purchase of Television surge by 18%, the sale of other large premium appliances increase by 30%, sales of beauty and fashion produces raise by 60%, and 70% boost in children’s products.
Verdict:
New Year celebrations in India present a fascinating paradox: a cultural event deeply rooted in tradition has become an occasion for extravagant spending. While various Indian cultures and religions have their own New Year observances, the Western New Year, on January 1st, has emerged as a major commercial event. This shift is particularly noticeable in the dramatic increase in spending on non-vegetarian food and alcohol.
Non-vegetarian dishes, symbolic of abundance and prosperity, are central to New Year feasts. From coastal regions indulging in expensive seafood to the widespread consumption of chicken and mutton, households allocate a significant portion of their festive budget to non-vegetarian items. Alcohol consumption also peaks during this period, fueled by social norms and aggressive marketing. This trend is evident in the record-breaking liquor sales in cities like Delhi, Telangana, and Bengaluru.
However, the spending spree extends beyond food and drinks. The New Year season witnesses a surge in demand for electronics, fashion, home decor, and personal care products. E-commerce platforms play a crucial role in facilitating this consumerism, offering convenience and a wide array of choices.
This spending culture, while seemingly at odds with the traditional values of restraint and simplicity associated with Indian New Year celebrations, reflects a complex interplay of factors. The desire to mark new beginnings, uphold social status, and indulge in the festive spirit drives consumers to open their wallets. Additionally, the pervasive influence of marketing and the allure of year-end deals further fuel this trend.
The confluence of tradition and consumerism during India’s New Year celebrations creates a unique socioeconomic landscape. While the spending may seem excessive, it also supports businesses, generates revenue, and contributes to the overall economic activity. However, it is essential to strike a balance between celebrating the New Year and financial prudence, ensuring that the festive spirit does not overshadow responsible spending habits.
