The India Gin Market is estimated to be valued at US$ 546.03 Bn in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Gin is a distilled alcoholic drink that derives its predominant flavour from juniper berries. It is composed mainly of water, ethanol, and botanical/herbal flavourings. The key botanicals used in gin include juniper berries, coriander, angelica root, licorice, caraway, and cinnamon. Gin is consumed both straight chilled and as a base for cocktails and mixed drinks such as gin and tonic. Gin is popular around the world including in the UK and India.
Market Dynamics:
The India gin market is primarily driven by the rising disposable incomes and changing consumer preferences towards premium alcoholic beverages. According to World Bank data, the annual per capita GDP in India increased from US$ 1,888.60 in 2014 to US$ 2,104.16 in 2020. This rising disposable income has allowed consumers to spend more on luxury consumables including premium alcoholic drinks. Another driver for the market is the growing social acceptance of drinking gin. Earlier drinking alcohol was restricted to social and family gatherings, however, with rapid urbanization, social drinking has gained popularity in India, especially among millennials. The growing pub and bar culture in tier 1 and tier 2 cities has also supported the growth of gin consumption in social settings. These factors are expected to support the growth of the India gin market over the forecast period.
Segment Analysis
The India gin market is dominated by the London dry gin sub-segment. This is because London dry gin has become very popular among the young millennial population in India, who prefer cocktails containing London dry gin for social gatherings and parties. London dry gin derives its predominant juniper flavor from juniper berries and contains other botanicals to produce a dry taste.
PEST Analysis
Political: The government is relaxing FDI norms and enabling easier access to markets which is promoting investment in the premium alcohol sector including gin. However, some states have their own prohibition laws.
Economic: Rising disposable incomes, growth of domestic tourism industry, expanding pub and bar culture are supporting premiumization in the alcohol market. Gin consumption remains concentrated in tier 1 and tier 2 cities currently.
Social: Exposure to global mixology trends through social media is popularizing craft cocktails at home parties and urban establishments alike. People are willing to pay more for premium gin variants and unique craft experiences.
Technological: Companies are launching their gin brands on e-commerce platforms to expand reach beyond traditional retail. Techniques like nano-emulsification are helping gin brands develop premium offerings with unique flavor profiles.
Key Takeaways
Global India Gin Market Demand is expected to witness high growth, exhibiting CAGR of 5.9% over the forecast period 2023 to 2030, due to increasing spending power and exposure to international mixology trends. The market size for 2023 is estimated at US$ 546.03 Billion.
Regionally, the southern regions led by Karnataka, Tamil Nadu and Kerala are emerging as high potential markets for gin in India. This is because of rapid urbanization, growing interest in craft spirits and presence of many craft distilleries & premium bars in these states.
Key players operating in the India gin market are Bombay Spirits Company LTD, Diageo plc, William Grant & Sons Ltd, Charles Tanqueray & Co., Vantguard, Jaisalmer Indian Craft Gin, Nao Spirits & Beverages Pvt Ltd, Radico Khaitan Limited, Pernod Ricard, and Beam Suntory, Inc. These players are investing in portfolio expansion, premiumization of brands, and expansion into new markets.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
