The India alcohol market includes liquor products such as beer, wine, and spirits. Beer is one of the most popular alcoholic beverages in India. Major beer brands in India include Kingfisher, Budweiser, Haywards 5000, Tuborg, Royal Challenge, etc. Spirits account for the largest share in the alcohol market. Indian-made foreign liquor (IMFL) and country liquor are the major spirits consumed in India. Popular IMFL brands include McDowell’s No.1 Celebration Rum, McDowell’s No.1 whisky,Signature whiskey, Officer’s Choice, Romanov vodka, etc. The global tourism industry has expanded significantly over the past few years in India, which has flourished the alcohol market.
The global India Alcohol Market is estimated to be valued at US$ 57116.16 Mn in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The growing tourism industry in India acts as a key driver for the alcohol market. India received 10.93 million foreign tourist arrivals in 2021. Tourists spending on recreational activities such as dining out, concerts, bars, and pubs has significantly contributed to the growth of the alcohol market in India. Another driver is increasing consumption of premium and craft alcoholic beverages. Younger consumers in India are shifting from mainstream alcohol products to premium liquor and craft beer brands. This provides opportunities for premium liquor brands to expand in the Indian market. However, strict regulations and prohibition policies in some states of India act as a challenge for the market growth.
Segment Analysis
The India alcohol market is dominated by spirits (whiskey, rum, brandy, vodka) sub-segment. Spirits enjoys around 60% market share in India due to rising disposable incomes and changing cultural preferences. Whiskey remains the top choice among spirit drinkers. Beer sub-segment is the fasted growing due to rising popularity of craft beers and marketing initiatives of companies like United Breweries and Anheuser Busch InBev. Wine contributes around 3% share due to lesser consumption in Indian culture as compared to western countries.
PEST Analysis
Political: Import duties on alcohol are high ranging between 150-250% to discourage consumption. However, some states have recently relaxed rules to promote tourism like Goa, Sikkim and Himachal Pradesh.
Economic: Rising incomes and aspirational lifestyles are major drivers of growth for premium and super premium liquor brands. Lower GST rates of 18-28% also support industry.
Social: Alcohol consumption remains a sensitive issue due to certain religious and cultural reasons in parts of India. However, younger generation is more open to new experiences.
Technological: Digital marketing plays a key role in brand promotion. Companies use tools like influencer marketing to target millennials and Gen Z. Online retail is also growing for wine and premium spirits category.
Key Takeaways
The India Alcohol Market Size is expected to witness strong growth on the back of changing socio-cultural attitudes, especially in large cities and upwardly mobile middle class. The India alcohol market size for 2024 is US$ 57116.16 Mn. Growing disposable incomes and social drinking culture are expected to drive the market during the forecast period of 2024 to 2031.
Spirits segment dominates currently led by whiskey, while beer category is growing fast propelled by craft varieties. Southern and Western regions like Karnataka, Maharashtra, Goa andPunjab are major consumers states driving higher volumes.
Key players operating in the India alcohol market are Brand Energy & Infrastructure Services, Layher Holding GmbH & Co. KG, Safway Group Holding LLC, ULMA Construction, PERI GmbH, Altrad Group, MJ-Gerüst GmbH, Waco Kwikform Limited, Turbo Scaffolding, Simplified Scaffolding Pty Ltd., Hunan World Scaffolding Co., Ltd., Tianjin Wellmade Scaffold Co., Ltd., Apollo Scaffold Services Ltd., Pilosio S.p.A., Instant Upright. Craft distillers and premium international brands are looking to tap into demand from urban millennials. Stricter regulations in some states and cultural factors in certain pockets remain challenges for industry players.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
