December 9, 2024
India Alcohol Market

India Alcohol Market Is Estimated To Driven By Rise In Disposable Income

Alcoholic beverages such as beer, wines, and spirits are widely consumed in India for leisure purposes or as part of rituals and ceremonies. Beer accounts for over 70% volume share of the overall alcohol market in India. Indian-made foreign liquor (IMFL) represents wines and spirits and accounts for around 25% volume share. Country liquor produced locally occupies remaining 5% share. Rising disposable incomes and changing social drinking patterns are favoring the growth of beer and IMFL segments in India. Young population between age group 18 to 35 years are significantly contributing to the growth of premium and super-premium brands. The alcohol industry association ASSOCHAM estimated that India has become the third largest spirits market globally after China and the US.

The global India Alcohol Market is estimated to be valued at US$ 49580 Mn in 2023 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:

One of the major trends in the India Alcohol Market is the growing preference for craft and premium beers. Many small to medium breweries are introducing their indigenous craft beers inspired by regional flavors appealing to young millennials. Indian craft beer consumption grew by 31% in 2021, almost 4 times the growth rate of mainstream beers. Another trend is the rising popularity of celebrity endorsed premium and luxury liquor brands. Several Bollywood stars have launched their own celebrity liquor brands targeting urban populations seeking high-quality and premium alcoholic beverages. Companies are also launching innovative packaging such as can beers and cocktail kits to attract young consumers and stay ahead of competition. Alcohol e-commerce is another emerging trend enabling consumers to order beer, wines, and spirits online for home delivery.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is low in Global India Alcohol Market Size as it requires higher initial investments and strong brand image to compete in the industry.

Bargaining power of buyers: The bargaining power of buyers in moderate as there are numerous brands available across various alcohol categories.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are many raw material suppliers and contract manufacturers in the market.

Threat of new substitutes: The threat of new substitutes is low in India Alcohol market as alcohol brands create strong brand loyalty among consumers.

Competitive rivalry: The competitive rivalry is high among established players like Brand Energy as they compete aggressively on pricing and marketing strategies.

Key Takeaways

The global India Alcohol market is expected to witness high growth. The market was valued at US$ 49580 Mn in 2024 and is projected to reach US$ 81320 Mn by 2030, registering a CAGR of 5.6% during the forecast period.

Regional analysis: Southern region dominates the India Alcohol market with over 35% revenue share in 2024 owing to higher consumption in states like Tamil Nadu and Karnataka. Western region is expected to be the fastest growing region during the forecast period due to increasing disposable incomes.

Key players: Key players operating in the India Alcohol market are Brand Energy. Brand Energy leads the beer segment with over 15% market share. India Alcohol Market

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

Ravina
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Ravina Pandya,  Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.

Ravina Pandya

Ravina Pandya,  Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.

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