by The India gin market has witnessed significant growth over the past few years due to the increasing premiumization trend among millennials and young population. Gin offers a variety of flavors and tastes which is attracting health-conscious consumers in India. Gin is considered a healthier alternative to other spirits as it contains fewer calories and carbs. It is also viewed as a status symbol drink among urban consumers. The market comprises international as well as domestic gin brands which are introducing innovative flavors to attract new consumers.
Global India Gin Market is estimated to be valued at US$ 1,666.3 Mn in 2024 and is expected to exhibit a CAGR of 7.2% over the forecast period 2024 To 2031.
Gin is distilled from neutral grain spirits and juniper berries along with various other botanicals. The rising disposable income of millennials and their preference for premium alcoholic beverages have fueled the growth of the India gin market. The key advantage of gin is that different botanicals can be added during the distillation process which results in unique taste and flavor profiles. This has encouraged innovative flavors such as cotton candy gin, ginger gin etc. which are gaining popularity among young drinkers.
Key Takeaways
Key players operating in the India gin market are Sanofi S.A., Encore Dermatology Inc, AbbieVie Inc., F. Hoffmann-La Roche AG, Novartis AG, Regeneron Pharmaceuticals, and Sun Pharmaceuticals. These players are focusing on new product innovations to expand their consumer base. For instance, botanical or flavored gins are becoming increasingly popular.
The India Gin Market Demand for premium and super-premium spirits and innovative flavors among urban millennials is a key factor driving the India gin market. The rising disposable income and changing taste preferences have increased on-premise as well as off-premise consumption of gin.
The market is also witnessing expansion in terms of availability across modern retail outlets as well as online retail channels. E-commerce platforms offer a wide variety of international gin brands to consumers. This has further boosted the accessibility of gin-based beverages.
Market Key Trends
The increasing premiumization trend is one of the major trends being witnessed in the India gin market. Consumers are willing to pay more for premiumization of products in terms of higher quality ingredients, novelty flavors, unique taste profiles, sustainable packaging etc. This has encouraged established as well new craft distilleries to introduce more premiumization in their gin portfolios. Novel ingredients and unusual taste combinations are gaining popularity. For example, brands are experimenting with ingredients like Indian spices, summer fruits or cinnamon to make gin more indigenous and appealing to the local palate. This premiumization trend is expected to continue and strengthen over the forecast period.
Porter’s Analysis
Threat of new entrants: New entrants have substantial capital investment which poses as a threat for established players in the market.
Bargaining power of buyers: Large buyers such as distributors are able to negotiate better prices which lowers brand profit margins.
Bargaining power of suppliers: Brand recognition and supplier relationships enable companies to negotiate favorable terms with raw material suppliers.
Threat of new substitutes: Alternative spirits pose a threat of substitution however brand loyalty and consumption occasion differences offer protection.
Competitive rivalry: Competition is intense between established brands which resort to promotional activities and product differentiation to gain market share.
India dominates the India Gin Market Companies with a value share of over 50% in 2024 owing to a large consumer base. The Western region of India is also a major revenue generator for gin market participants attributed to high consumption of spirits in states like Maharashtra and Gujarat.
The Southern region of India is anticipated to exhibit fastest growth during the forecast period owing to introduction of new variants tailored to local tastes and rising social acceptance of alcohol consumption. States like Telangana, Karnataka and Tamil Nadu are targeted aggressively by companies through on-trade promotions.
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*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Alice Mutum
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights. LinkedIn
