The Indian alcohol market consists of beer, wine, and spirits. Beer accounts for approximately 50% of the total alcohol market in India. India has witnessed rapid urbanization over the past decade with around 37% of the population residing in urban areas. This has led to a rise in disposable incomes and changes in consumer preferences. Young consumers are increasingly opting for premium alcoholic beverages. The consumption of spirits such as whisky, rum, gin, and vodka has grown significantly over the years. Whisky accounts for over 70% of total spirits consumption in the country. The high alcohol content and lower price as compared to beer and wine have made spirits popular among consumers.
The global India alcohol market is estimated to be valued at US$ 49580 Mn in 2023 and is expected to exhibit a CAGR of 6.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
The India alcohol market is expected to be flourished by rapid urbanization in the country. With increasing urban population, consumers are shifting towards premium drinks. Spirits have emerged as a popular choice led by rise in disposable income. The heading also refers to increasing consumption of spirits as a driver. Young Indian consumers are experiencing new flavors and variety of spirits which has boosted the demand. Easy availability of various spirits brands through organized retail outlets and e-commerce has further supported the market growth. However, strict regulation and increasing health awareness could dampen the market in coming years.
The India alcohol market is dominated by beer segment which holds around 55% market share. Beer is the most popular alcohol segment in India due to rising social acceptance and parties/event culture in the country. There has been rising consumption of beer at casual dining places, pubs and bars which has driven the growth of this segment. The whisky segment is second largest and holds around 25% share due to established consumer base. Country liquor segment trails behind with around 15% share and finds major consumption in rural areas of the country. Rising disposable incomes and westernization is expected to boost premium segments like craft beer, premium whisky and vodka in coming years.
Political: The alcohol industry is regulated by state governments in India via excise duties. Some states have banned alcohol while others permit only certain days of sale. This creates uncertainty.
Economic: Rising incomes, urbanization and Indian middle class expansion are major drivers of alcohol consumption growth. However, inflation and economic slowdowns remain key challenges.
Social: While alcohol was traditionally seen as premium product, improved social acceptance is driving volumes. However, health awareness campaigns run by NGOs create negative sentiments at times.
Technological: E-commerce plays a significant role for premium and luxury alcohol brands. Players use digital mediums like websites and apps for marketing, home delivery and brand building. This has boosted premiumization.
The Global India Alcohol Market Growth is expected to witness high. The global India alcohol market is estimated to be valued at US$ 49580 Mn in 2023 and is expected to exhibit a CAGR of 6.7% over the forecast period 2023 to 2030.
Northern and Western regions dominateIndia alcohol consumption supported by high disposable incomes and influence of western culture in metro cities. Southern region is also growing at healthy pace led by states like Telangana and Karnataka.
Key players operating in the India alcohol market are United Spirits Ltd, Mohan Meakins, Radico Khaitan, Globus Spirits, Jagatjit Industries. United Spirits dominates beer and whisky segments while Mohan Meakins and Globus Spirits have strong presence in country liquor. These players use extensive distributor networks, brand building and digital marketing to strengthen market position.
Major M&A deals include acquisition of Whyte & Mackay by United Spirits in 2011 and Radico Khaitan acquiring Seagrams whisky brands in 2016. Players are increasingly focusing on premiumization through craft variants and experimenting with newer flavors to attract young demographics. E-tailing platforms and online home delivery are key strategies adopted by players to penetrate newer markets.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it