by India has a large market for alcoholic beverages due to its population and growing middle class. Alcoholic beverages such as beer, wine, and spirits are widely consumed socially and for recreational purposes in the country. Beer especially enjoys high demand owing to various regional varieties with unique flavors. The growing disposable incomes and increasing social acceptability of alcohol consumption are propelling individuals to premiumize their drinking experiences.
The global India Alcohol Market is estimated to be valued at US$ 49580 Mn in 2024 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Rising demand for premium alcohol brands
The key trend propelling the growth of the India alcohol market is the rising demand for premium and super-premium alcohol brands in the country. Various factors such as exposure to global drinking cultures, vibrant nightlife in urban cities, emerging social trends, and rising disposable incomes are fueling the premiumization of alcohol in India. Premium brands offer superior quality, exotic flavors, niche varieties, exciting packaging and marketing experiences that appeal to consumers’ sense of status and luxury. Leading alcohol companies are capitalizing on this opportunity by launching premium and luxury brands of spirits, beers, and wines targeted at the country’s urban elite. The sleek packaging and competitive pricing of such premium brands are helping to drive their popularity in the country.
SWOT Analysis
Strength: The India alcohol market has a large consumer base due to rising youth population and growing disposable income. There is also widespread social acceptability of alcohol.
Weakness: Strict government regulations and increasing awareness around health issues related to alcohol consumption pose challenges. High taxes imposed by various state governments also affect industry growth.
Opportunity: There is scope to introduce premium and new product categories in the market. Growth of organized retail and e-commerce sector provides new sales channels.
Threats: Rising health consciousness and increase in non-alcoholic beverage options impact industry prospects. Heightened competition from global players is another threat.
Key Takeaways
The India Alcohol Market Size is expected to witness high growth on account of rising disposable incomes, cultural acceptance of alcohol and changing social norms.
Southern regions like Tamil Nadu and Karnataka dominate industry revenues owing to heavy alcohol consumption patterns. Brands such as United Spirits and Jagatjit Industries hold leading positions while Diageo and Pernod Ricard have a growing international presence.
Key players operating in the India alcohol market are Brand Energy & Infras, United Spirits, Jagatjit Industries, Radico Khaitan, Globus Spirits, Sula Vineyards and John Distilleries. The industry is characterized by increasing penetration of premium and new product categories. While demand remains strong across urban centers and southern states, evolving consumer preferences along with tighter regulations present both opportunities and challenges for market stakeholders.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
