May 18, 2024

India Alcohol Market Is Estimated to Witness High Growth Owing to Increasing Disposable Incomes

Beer dominates the country’s alcohol market and is considered the preferred alcohol type among consumers. Beer offers various health benefits such as reduced risk of heart diseases. It also helps maintain a healthy immune system. Rising disposable incomes and changing lifestyles have increased alcohol consumption in India in recent years. Marketing and promotional activities by leading companies are also contributing to market growth.

The India Alcohol Market is estimated to be valued at US$ 57,116.16 Mn in 2024 and is expected to exhibit a CAGR of 5.6% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the India Alcohol Market are Brand Energy & Infrastructure Services, Layher Holding GmbH & Co. KG, Safway Group Holding LLC, ULMA Construction, PERI GmbH, Altrad Group, MJ-GerĂ¼st GmbH, Waco Kwikform Limited, Turbo Scaffolding, Simplified Scaffolding Pty Ltd., Hunan World Scaffolding Co., Ltd., Tianjin Wellmade Scaffold Co., Ltd., Apollo Scaffold Services Ltd., Pilosio S.p.A., Instant Upright. Brand Energy & Infrastructure Services is one of the leading players in India with a wide distribution network spread across the country.

The India alcohol market provides significant opportunities for existing as well as new players. Rising health-consciousness has led to increased demand for organic and natural alcoholic beverages. Craft beers produced using local ingredients offer immense growth potential. Growing tourism and expanding organized retail are also expected to boost market revenues.

The India alcohol market is expanding globally with companies venturing into new international markets. Leading companies are expanding their operations in Asian, European, and African countries through mergers & acquisitions, partnerships, and by setting up manufacturing units. Exports of Indian alcohols such as whisky and brandy are also on the rise.

Market drivers

Increasing disposable incomes along with changing lifestyles and attitudes are major drivers propelling growth of the India alcohol market. Rising spending power has increased on-trade and off-trade sales of premium and super-premium alcohol brands. Growing social acceptance of alcohol consumption in public places is also contributing to market revenues. Furthermore, aggressive promotional activities by manufacturers through highly visible marketing campaigns on television and digital platforms are influencing consumer purchase decisions.

PEST Analysis
Political: The political environment in India has regulations regarding the production, distribution and consumption of alcohol. Licenses are required for production, import, distribution and retail of alcohol. New regulations and taxes can impact the industry.
Economic: The economic growth of India has boosted the purchasing power of consumers. Rising disposable incomes are positively impacting the alcohol market. However, inflation and economic slowdowns can restrain market growth.
Social: Changing social norms are increasing alcohol consumption in India, especially among younger consumers. However, cultural traditions and religious beliefs still influence consumption patterns in some parts of the country.
Technological: Technology is being used for innovations in product offerings, packaging and promotion in the Indian alcohol market. Advanced production, bottling and distribution technologies are enhancing efficiencies. E-commerce is opening new sales channels.

In terms of value, North India constitutes the largest geographical market for alcohol in India accounting for over 30% share. States like Delhi, Haryana, Punjab and Uttar Pradesh have a high consumption rate.
The South Indian market, led by Karnataka, Tamil Nadu and Andhra Pradesh, is the fastest growing region for India’s alcohol market. Economic development, rising incomes and changing consumer behaviors are driving strong sales growth in these southern states.
Trends indicate consumption will further rise in East and West India as their economies expand in the coming years. Emerging rural markets also offer new opportunities. The market is steadily shifting from unorganized to organized retail as companies invest heavily in distribution infrastructure across the country.

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