A leading research analyst at Future Market Insights discusses the potential trends in Indian alcohol market that are expected to impact the business of Indian alcohol makers in future
The rapidly proliferating urban population and the significant spending by consumers on alcoholic beverages, is creating major growth opportunities for Indian alcohol makers. Adoption of modern lifestyle across the urban landscape coupled with the temporary stress relieving benefits of alcohol has majorly boosted the consumption of alcohol. However, certain government activities and changing regulations are expected to stir potential transformations in the forthcoming years.
What are the storming transformations that are expected to impact the overall liquor business in India?
Maharashtra State Government issued a notification on 31st Dec 2018 for the amendment of Maharashtra Potable Liquor Rules, 1996, to hike the excise duty on Indian alcohol. On account of this, mid-sized and premium Indian Made Foreign Liquor (IMFL) will experience a hike of 20 to 25 %, small brands will experience a hike of 5 %, while the foreign liquor brands will face an excise duty of about 4 %. This change is expected to majorly impact the Indian alcohol business.
What segment of alcohol is gaining major popularity among the consumers?
The premium alcohol brands are gaining major preference by Indian consumers owing to the growing abundance of the middle-class sectors and the proliferating per capita spending of consumers. An official at the Indian distiller company, Radico Khaitan Ltd. expressed his view on the progressive Indian alcohol market, where he stated that Indian consumers are spending more on premium alcohol, including brandy, whisky, vodka, and rum.
What are some of the budding trends likely to influence the Indian alcohol market?
Companies operating in alcohol landscape are increasingly focusing on making innovative developments in their product portfolio to enter the dry states that prohibit alcohol. Leading alcohol brands such as Heineken, London Pilsner, and Kingfisher plan to introduce non-alcoholic beer in the Gujarat state and others. This is expected to stir new developments in the Indian alcohol market over time.
How are alcohol manufacturers differentiating in the Indian alcohol landscape?
Indian alcohol manufacturers focus on innovating in terms of flavor to best cater consumer demands. Owing to this, several Indian alcohol makers plan to offer its Indian customers with the country’s heritage liquor. Indian alcohol manufacturers including Native Brews, Agave India, and Cazulo plan to manufacture alcohol from agave plant, mahua flower, and feni. Their primary aim is to develop a national alcoholic beverage for the nation, similar to the Scotch whisky from Scotland, apart from making the Indian consumers aware of the native taste and flavor.
What are the new regulatory requirements that need to be addressed by the companies operating in the Indian alcohol market?
Regulations pertaining to alcohol are amongst the key factors that need to be addressed by the Indian alcohol market players. The Food Safety and Standards (Alcoholic Beverages Standards) Regulations, 2018 specify requirements for labelling including the declaration of alcohol content, no nutritional information, labeling of a standard drink, no health claims, etc.
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