The India Alcohol Market has experienced significant growth in recent years owing to rising disposable income levels and changing consumption patterns among consumers. Alcoholic beverages such as beer, wines and spirits are becoming increasingly popular with young adults and the working population due to their variety in flavors and easy accessibility. Beer especially is gaining traction as consumers perceive it to be a healthier alcoholic drink compared to hard spirits. Moreover, decreasing social stigma has further accelerated the acceptance and consumption of alcohol among the masses. The global alcohol industry has also witnessed premiumization as consumers are willing to pay more for high-quality drinks and unique flavors.
The global India Alcohol Market is estimated to be valued at US$ 49580 million in 2024 and is expected to exhibit a CAGR of 5.6% over the forecast period 2024-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends witnessed in the India Alcohol Market is increasing preference for flavored alcohols. Alcohol brands are innovating new products with added flavors to cater to dynamic tastes of Indian consumers. For instance, beer brands are launching various fruit and herb infused beers. Similarly, Indian made foreign liquor brands are introducing international flavors such as lime, orange and cranberry into their product offerings. Alcohol e-commerce is another notable trend, especially post-pandemic. Leading alcohol companies have entered the online retail space to fulfill demand from digital-savvy urban consumers. This allows consumers to order alcohol from the comfort of their homes. Furthermore, rising health-consciousness has led to growing popularity of low-alcohol and alcohol-free beverages. Many new craft brands are introducing beverages with 0% alcohol content but similar taste profiles to hard spirits and beers.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is low as the India alcohol market is consolidated with established players and high capital requirement. However, growing demand is attracting new small players.
Bargaining power of buyers: The bargaining power of buyers is high given the availability of substitutes and price sensitivity of customers. Significant buyer power is exhibited in unorganised retail formats.
Bargaining power of suppliers: The bargaining power of suppliers is moderate due to availability of substitutes and established supply chains of major players.
Threat of new substitutes: The threat of new substitutes is moderate as beverages such as fruit juices, carbonated drinks and energy drinks are replacing alcohol to some extent.
Competitive rivalry: Competition is high among major players such as United Spirits, Radico Khaitan etc. to gain market share through new launches and marketing strategies.
Key Takeaways
The Global India Alcohol Market Size is expected to witness high growth.
Regional analysis: The India alcohol market is dominated by southern and western regions owing to high consumption and availability. These regions account for over 55% share of the overall market.
Key players operating in the India alcohol market are Brand Energy & Infras, United Spirits, Radico Khaitan, Globus Spirits, Jagatjit Industries and Allied Blenders & Distillers Pvt. Key players are focusing on expanding their product portfolios and footprint in the country through new launches and acquisitions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
