February 25, 2024
India Alcohol Market

The India Alcohol Market Is Projected To Driven By Increasing Consumer Spending

The India alcohol market is comprised of various alcoholic beverages including beer, whiskey, rum, wine and others. Beer remains the most popular alcoholic beverage consumed in the country owing to its lower price point as compared to other spirits. However, consumption of premium and super premium spirits such as scotch, brandy and vodka has witnessed robust growth over the past few years driven by rising disposable income of consumers and changing lifestyle preferences. Growth in tourism industry has further augmented the demand for various alcoholic drinks across India.

The global India alcohol market is estimated to be valued at US$ 49580 Mn in 2023 and is expected to exhibit a CAGR of 6.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends witnessed in the India alcohol market has been rising presence of international alcohol brands. Several global alcohol giants have been increasing their footprint in the highly populous but fragmented Indian market through strategic investments, acquisitions and expansion of distribution channels. For instance, Diageo acquired a majority stake in United Spirits Limited in 2012 to strengthen its portfolio of premium whisky and scotch brands in India. Similarly, AB InBev increased its investments in India after acquiring SABMiller to tap rising demand for affordable beer brands. Rising middle class population with greater exposure to international premium beverages has encouraged foreign players to bring their products to India. This rising globalization has intensified competition while offering consumers with diverse alcohol options across different price points.

 

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate as alcohol production requires large capital investment in distilleries and bottling plants and also has stringent regulatory requirements.

Bargaining power of buyers: The bargaining power of buyers is moderate as there are many established players in the market providing a variety of alcohol products. However, buyers have low switching costs.

Bargaining power of suppliers: The bargaining power of suppliers is low as the raw materials required for alcohol production such as grains, molasses and fruits are abundantly available.

Threat of new substitutes: The threat of new substitutes is moderate as beverage alternatives like juices, soda, and energy drinks pose competition.

Competitive rivalry: The competitive rivalry is high due to the presence of many domestic and international brands competing on the basis of product innovation, branding and marketing.

Key Takeaways

The Global India Alcohol Market Demand is expected to witness high growth. The market is estimated to reach US$ 83390 Mn by 2030 from US$ 49580 Mn in 2023, expanding at a CAGR of 6.7% during the forecast period. Beer and wine segments dominate the market currently and are expected to witness steady growth.

Regional analysis: The western region currently holds the largest share in the India alcohol market owing to high consumption in states like Maharashtra and Gujarat. However, southern states like Karnataka and Andhra Pradesh are emerging as high growth markets.

Key players: Key players operating in the India alcohol market are DIC CORPORATION, Solvay S.A., Lion Idemitsu Composites Co., Ltd, Toray Industries, Inc., Tosoh Corporation, SK chemicals, Chengdu Letian Plastics Co., Ltd., Celanese Corporation, TEIJIN LIMITED, SABIC, Zhejiang NHU Co., Ltd., LG Chem, and RTP Company. Players are focusing on new product launches to strengthen 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