May 18, 2024
Indian Alcohol Market

The Indian Alcohol market is estimated to Propelled by growth in beer and spirits consumption

India has seen exponential growth in alcohol consumption in recent years, especially beer and spirits. With rising disposable incomes and westernization of tastes, more Indians are opting for beer and premium spirits over traditional liquors. This has opened opportunities for both domestic and international players in the highly regulated Indian alcohol market.

The Indian 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, as highlighted in a new report published by Coherent Market Insights.

The global India Alcohol Market manufactures and sells various alcoholic beverages such as beer, wine, and spirits. Beer and spirits are increasingly popular in India due to changing lifestyles and exposure to international culture. Products in this market help meet social and recreational needs of consumers. The market is witnessing strong growth on account of rising spending power, socializing trends, and promotion by market players.

Market key trends:
The growth in beer and spirits consumption in India is a major trend driving the alcohol market. Consumption of beer has doubled in the last five years in the country. Young consumers are opting for beer more frequently over hard liquors at bars, pubs, and social gatherings due to health awareness. Meanwhile, premium whiskies and rum are increasingly popular gifts as Indians pursue aspirational lifestyles. Leading companies like United Spirits and Diageo have invested heavily in new products, packaging and promotion to tap into this growing premiumization trend. The availability of international brands at affordable prices and rising disposable incomes are ensuring the momentum continues in the Indian alcohol market going forward.

SWOT Analysis
Strength: The India alcohol market has a large consumer base given India’s large population. Growing disposable incomes are also fueling market growth.

Weakness: Strict regulations and taxes imposed on alcohol production and sales act as a restraint. Cultural and religious beliefs prohibiting alcohol consumption also hamper market growth in some regions.

Opportunity: Rising social acceptance of alcohol consumption, especially among younger consumers, presents new opportunities. Growth in liquor tourism and craft beer culture further expands growth avenues.

Threats: Increased health awareness among people regarding the ill-effects of excessive alcohol intake poses a threat. Strict lockdowns and restrictions during the COVID-19 pandemic adversely impacted sales and continue to remain a challenge.

Key Takeaways
The Global India Alcohol Market Size is expected to witness high growth over the forecast period. Growing social acceptance paired with rising disposable incomes especially in tier-2 and tier-3 cities are driving sales upwards. The Indian 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.

Regional analysis: Southern states like Karnataka, Telangana and Andhra Pradesh account for over 35% market share currently. However, northern and eastern regions are displaying faster growth. States like Uttar Pradesh, Bihar and West Bengal are emerging as high potential markets going forward.

Key players: 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. These companies are focusing on expanding their regional presence and product portfolios through new launches.

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