Alcoholic beverages including beer, whiskey, wine and other spirits are widely consumed across various occasions and festivals in India. Alcoholic drinks are not just consumed for enjoyment but also used for several traditional rituals and ceremonies. The demand for premium and super-premium brands is increasing in the country due to rising disposable incomes and changing lifestyle.
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:
The key trend propelling the growth of the India alcohol market is the increasing consumption of premium alcoholic beverages. Young population between the ages of 21 to 35 years are increasingly opting for premium brands due to rising disposable incomes and changing preferences. Leading players like Brand Energy are focusing on premiumization of their product portfolio with the launches of premium brands targeting young consumers. The consumption of super-premium whisky and wine is growing at a faster pace in metropolitan cities. Players are launching expensive single malt and blended scotch whiskies, which are priced over US$ 50 to capitalize on the demand for premium drinks. This rising preference for premium beverages is expected to drive the India alcohol market substantially over the forecast period.
SWOT Analysis
Strength: The Global India Alcohol Market Size has a large consumer base due to growing middle class population with increasing disposable income. Moreover, rising social acceptance of alcohol consumption further boosts the market growth.
Weakness: Strict government regulations and policies over production, distribution and sales of alcohol products limits the growth of the market. Additionally, religious restrictions and cultural taboos in some regions also restrain the market growth.
Opportunity: Introduction of premium, super premium and craft varieties of beer and spirits open new avenues. Also, growing preference of millennials towards flavored and novel alcoholic beverages acts as an opportunity.
Threats: Increasing health awareness among consumers regarding the harmful effects of excessive alcohol consumption is a major threat to the market. Moreover, rising production costs due to inflation in raw material prices negatively impacts the profit margins of players.
Key Takeaways
The global India alcohol market is expected to witness high growth. 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.
The India alcohol market is dominated by the northern region with the states of Punjab, Haryana and Delhi accounting for over 30% of total market share. The southern region, led by Karnataka and Andhra Pradesh is the second largest market. However, the eastern region spanning West Bengal, Odisha, Bihar and Jharkhand is anticipated to grow at the fastest CAGR during the forecast period attributable to changing cultural trends, growing disposable incomes and rising social acceptability of alcohol consumption.
Key players related content comprises Key players related content
Key players operating in the India alcohol market are Brand Energy, Mika Beverages, Golden State Brewing Co., B9Beverages and Anubhav Distilleries. The industry is highly competitive with local and global players vying for top position through expansion of distribution networks, introduction of innovative offerings and strategic partnerships. Strategic alliances through mergers, acquisitions and collaborations have also gained traction as players seek to augment market share. Innovation will remain the key for longevity amid rising health and sustainability concerns.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
