Unlocking Investment Opportunities: India’s Booming Alcohol Industry and Future Growth Prospects

Alcohol Industry
Alcohol Industry

India’s alcohol industry size is estimated to reach US$ 55,840.0 million in 2024. Sales of alcoholic beverages in the nation will likely rise at 7.2% CAGR throughout the assessment period, totaling US$ 112,338.9 million by 2034.

Demand for spirits like vodka, whisky, and rum in India remains exceptionally high. As per the latest alcohol industry analysis, the spirits segment is anticipated to total a staggering valuation of US$ 50,552.1 million by 2034.

India’s alcohol industry is heavily influenced by changing demographics and lifestyles. With a growing young population and increasing urbanization, there is a rising demand for alcoholic beverages, particularly among the younger demographic who view alcohol consumption as a part of socializing and entertainment.

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The market is driven by factors such as changing lifestyles, urbanization, and a growing middle class. With a population of over 1.3 billion, India offers a vast consumer base for alcoholic beverages. The consumption patterns vary across regions and demographics, with a shift towards premium and craft spirits, wine, and craft beer. Especially among urban millennials and the emerging middle class.

Health-conscious consumers are opting for healthier alternatives like low-alcohol and non-alcoholic beverages, leading to the emergence of new product categories. The advent of e-commerce and digital platforms has transformed alcohol purchasing, with online liquor delivery services gaining popularity. However, challenges such as high taxation rates, regulatory complexities, counterfeit products, and social stigmas persist.

The future of the Indian alcohol market looks promising, driven by urbanization, increasing disposable incomes, and a young population. The changing demographics, including a growing urban population and favorable age demographics, further contribute to the market’s growth potential.

The rise in per capita disposable income is expected to boost consumer spending on lifestyle products and alcohol. The evolving Indian lifestyle, including changing attitudes toward alcohol consumption, increases alcohol consumption among women. Moreover, an increase in the popularity of the pub and cocktail culture fuels the demand for alcoholic beverages in the country.

  • IMFL, or Indian Made Foreign Liquor, holds a significant position in the India alcohol market, accounting for 40.3% of total alcohol consumption.
  • Whisky is the dominant category within IMFL, enjoying a strong consumer base nationwide.
  • Imported liquor holds a notable share of 33.4% in the market, driven by the demand for international flavors and premium offerings.
  • In terms of consumption, men play a significant role, representing a commanding share of 63.2% in 2024.

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The growing popularity of imported spirits indicates a flourishing segment within the Indian alcohol market. This trend is expected to continue as consumers become more discerning and open to exploring different tastes and brands. Presenting opportunities for international companies to establish a stronger presence in India.

Men in India show preferences for various alcoholic beverages such as whisky, rum, vodka, and beer. Whisky, in particular, has a large following among male consumers, associated with masculinity and social status. Alcohol consumption also plays a role in male-centric social and professional networking. As it is viewed as a way to build relationships and establish camaraderie in business and professional settings.

Competitive Landscape

The manufacturer’s increased launch of new items is likely to provide enormous growth potential during the projection period. Gordon, a London-based brand of dry gin released a low-alcohol pale ale in June 2018. The new Ultra-Low Alcohol Gin and Tonic Flavored Drinks have a 0.5% ABV and 68 calories, compared to 219 kcal in a standard gin and tonic.

Smirnoff, a leading vodka brand offered a new line of fruit-flavored vodka in April 2019 with around half the alcohol concentration of a Red Label. The new ‘Smirnoff Infusions’ line comprises vodka flavored with orange, grapefruit, and bitters. It also includes raspberry, rhubarb, and vanilla.

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Recent Developments in India’s Alcohol Industry

  • In 2023, Coca-Cola entered the Indian alcoholic beverages sector with the launch of Lemon-Duo, a globally acclaimed ready-to-drink concoction.
  • In 2022, Tilaknagar Industries acquired a19.5% stake in Pune-based startup Incredible Spirits. This acquisition will help the company strengthen its position in the fast-growing alcoholic ready-to-drink (RTD) industry.
  • In 2019, Radico Khaitan, an Indian spirits company, collaborated with Japan’s Asahi Group to launch and distribute Asahi Super Dry beer in India.

Key Companies in India’s Alcohol Industry

  • Heineken N.V.
  • Carlsberg A/S
  • United Breweries Holdings Limited
  • Devans Modern Breweries Ltd.
  • Diageo PLC
  • Carlsberg India Pvt. Ltd.
  • Anheuser-Busch InBev.
  • B9 Beverages Pvt. Ltd.
  • Crown India Alcohols India Limited (AB InBev)
  • Radico Khaitan Ltd.
  • Beijing Enterprises Holdings Limited
  • Dogfish Head Craft Brewery, Inc.
  • Squatters Pubs and Craft India Alcohols
  • Sierra Nevada Brewing Co.
  • The Boston India Alcohol Company, Inc.

Key Segments Covered in the India Alcohol Industry Report

By Product Type:

  • Beer
    • Lager
    • Specialty Beer
    • Craft Beer
    • Low-alcoholic Beer
  • Spirits
    • Whisky
    • Rum
    • Vodka
    • Gin
    • Brandy
    • Tequila
  • Wine
  • Red Wine
  • Rose Wine
  • White Wine

By Distribution Channel:

  • Food Service Industry
    • Restaurants
    • Hotels
    • Bars, Pubs, & Clubs
  • Retail
    • Liquor Stores
    • Specialty Retailing
    • Government-run Retail Outlets/ State Excise Department
    • Online Retailers

By Flavor:

  • Natural/Un-flavoured
  • Flavoured
    • Citrus
    • Ginger
    • Apple
    • Vanilla
    • Berry
    • Others

By Price Range:

  • Economy
  • Premium
  • Super Premium

By Packaging Type:

  • Cans
  • Bottles
  • Tetra Pak
  • Others (Pouches, Miniature)

By Region:

  • North India
  • South India
  • East India
  • West India
  • Northeast India

Key Coverage in the Indian Alcohol Industry Report

  • Information About Top Indian Alcohol Brands
  • Factors Making Alcohol Common in India
  • India’s Changing Alcohol Industry
  • Drivers Expanding India Spirits Market
  • Government’s Role Behind the Flourishing Beer and Wine Market in India
  • Analysis of Rising Export of India-made Spirits and Sales Impact
  • India’s Potential to Become a Global Leader in Alcoholic Beverages

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