July 23, 2024
India Alcohol Market

India Alcohol Market to Reach INR 2,807,236.7 Bn by 2027, with a CAGR of 7.8%

Market Overview:

The India Alcohol market includes various alcoholic beverages such as spirits, beer, and wine. These products are consumed for recreational purposes and are also used in the food and beverage industry for cooking and flavoring. The market is driven by increasing disposable income, changing lifestyles, and the growing popularity of social gatherings and parties. Furthermore, the rise in tourism and the expansion of the hospitality industry in India has also contributed to the growth of the alcohol market. The demand for premium products and craft beers is also on the rise, presenting new opportunities for manufacturers in the market.

Market Key Trends:

One of the key trends in the India Alcohol market is the growing preference for craft beers. Craft beers are gaining popularity among consumers due to their unique flavors and artisanal production methods. These beers are often produced by small, independent breweries, offering a diverse range of flavors and styles. Consumers are increasingly seeking out craft beers for their superior quality and taste, as well as the experience they offer. This trend is driven by the rising demand for unique and premium alcoholic beverages, fueled by the growing urban middle-class population in India. As a result, breweries are focusing on expanding their craft beer portfolios and introducing new flavors and styles to cater to this demand.

In conclusion, the India Alcohol market is poised for significant growth, driven by factors such as increasing disposable income, changing lifestyles, and the rising demand for
Segment Analysis:

The India Alcohol Market Demand can be segmented based on product type, distribution channel, and region.

Based on product type, the market is dominated by spirits, which accounted for the largest market share in 2018. This segment is expected to maintain its dominance throughout the forecast period. The dominance of the spirits segment can be attributed to the popularity of whiskey and rum in the country. These alcoholic beverages have a strong consumer base and are widely consumed across various demographics. Additionally, the rising disposable income of the Indian population has led to an increased demand for premium and imported spirits, further fueling the growth of this segment.

In terms of distribution channel, the market is dominated by the off-trade segment, which includes supermarkets, convenience stores, and online retail platforms. The off-trade segment accounted for the largest market share in 2018 and is expected to continue its dominance in the coming years. The convenience and ease of purchasing alcoholic beverages from retail stores and online platforms have contributed to the growth of this segment. Moreover, the COVID-19 pandemic has further boosted the online sales of alcohol, as consumers turned to e-commerce for their purchases.

Key Takeaways:

The India alcohol market is expected to witness high growth, exhibiting a CAGR of 7.8% over the forecast period. This growth can be attributed to several factors. Firstly, the increasing disposable income of the Indian population has resulted in a higher spending capacity on alcoholic beverages. Moreover, the changing lifestyle trends and preferences of consumers, particularly the younger population, have led to a shift towards premium and imported spirits.

In terms of regional analysis, North India is the fastest-growing and dominating region in the India alcohol market. This can be attributed to the high consumption rate of alcoholic beverages in states like Punjab, Haryana, and Uttar Pradesh. Additionally, the presence of a large urban population and the influence of western culture have contributed to the growth of the alcohol market in this region.

Key players operating in the India alcohol market include United Spirits Limited, Tilaknagar Industries Ltd, Jagatjit Industries, Mohan Meakin, Globus Spirits, Allied Blenders and Distillers Pvt., SAB Millier, Radico Khaitan Limited, Khemani Group, SOM Distilleries and Breweries, and Carlsberg A/S. These key players have a strong market presence and are actively involved in various strategies such as product launches, mergers, and acquisitions to maintain their market position.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it