India is set to host the 13th edition of the ICC Cricket World Cup after 12 years on home soil, starting from October 5. This mega sporting event, spanning 45 days with 48 matches, is poised to have significant economic and consumption impacts, coinciding with the festive season.

Cricket’s immense popularity in India, with a substantial viewer base, is expected to lead to increased consumption and media activity. The previous edition in 2019 saw 750 million unique viewers and 14 billion hours of total viewing time. Moreover, the attendance at World Cup matches in India, particularly in 2011, was substantial, with an average attendance of 25,000 viewers per match.

Jefferies, an advisory firm, anticipates both winners and losers in terms of businesses during the World Cup. On India match days, there may be reduced footfalls at movie theaters, theme parks, and offline brick-and-mortar retailers. Conversely, sectors such as food delivery, quick commerce, alcoholic and non-alcoholic beverages, online gaming, and media are expected to benefit from increased consumer activity.

Brands have historically used the World Cup as a key marketing platform. This year is no exception, with several brands announcing tie-ups with the event. An upsurge in media activity is expected in the coming weeks.

Cricket’s prominence in India is highlighted by the fact that four out of the top 10 most-followed sportspersons globally on Instagram are Indian cricketers, with Virat Kohli leading the list. The sports industry in India attracts significant sponsorship and media spending, with cricket alone accounting for 85 percent of these expenditures.

The impact of the World Cup on consumption trends during the crucial festive season is expected to vary across sectors. While overall consumption may see an increase, some categories may be positively affected, while others may experience adverse effects.

Flight and hotel rates have surged on India match days, with some hotels and flights witnessing rate increases of up to 13x and 5x, respectively. The hospitality industry is poised to benefit during the seasonally strong Q3, with hotels and airlines anticipating increased demand.

Jefferies has categorized the impact of the World Cup on various sectors, highlighting potential winners and losers. These include food delivery, quick-service restaurants, alcoholic beverages, movie theaters, theme parks, hotels, airlines, apparel retail, jewelry, e-commerce, media, and gaming.

The ICC Cricket World Cup 2023 is expected to not only be a cricketing spectacle but also a significant driver of economic activity and consumption trends in India.

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