The global India Alcohol Market is estimated to be valued at INR 2,807,236.7 Bn in 2018 and is expected to exhibit a CAGR of 7.8% over the forecast period 2019 to 2027, as highlighted in a new report published by Coherent Market Insights.
- A) Market Overview:
The India Alcohol Market comprises various alcoholic beverages, including spirits, beer, and wine. These products are widely consumed for recreational purposes and social gatherings. The market is driven by the increasing disposable income of consumers and the growing social acceptance of alcohol consumption. In addition, the availability of a wide range of alcoholic beverages and the popularity of premium and craft drinks are further fueling market growth.
- B) Market Dynamics:
The India Alcohol Market is primarily driven by two key factors. Firstly, the increasing disposable income of consumers has led to a rise in discretionary spending on leisure activities, including alcohol consumption. As consumers have more money to spend, they are willing to explore different alcoholic beverage options, thereby contributing to market growth. Additionally, the rising social acceptance of alcohol consumption has played a crucial role in driving the market. Unlike in the past, alcohol is now seen as a part of social gatherings and celebrations, leading to increased demand for alcoholic beverages.
- C) Market Key Trends:
One key trend observed in the India Alcohol Market is the growing popularity of craft and premium drinks. Consumers are increasingly seeking unique and high-quality alcoholic beverages that offer a differentiated experience. Craft beers, artisanal spirits, and premium wines are gaining traction among consumers who are willing to pay a premium price for superior quality and taste. For example, craft breweries are emerging across the country, offering a wide range of flavorful and distinctive beers that cater to the evolving preferences of consumers.
- D) SWOT Analysis:
- Increasing disposable income
- Rising social acceptance
- High taxation and regulations
- Health concerns related to alcohol consumption
- Growing market for craft and premium drinks
- Expansion of distribution channels
- Government regulations and restrictions
- Competitive pressures from international players
- E) Key Takeaways:
- The India Alcohol Market is expected to witness high growth, exhibiting a CAGR of 7.8% over the forecast period, due to the increasing disposable income of consumers and the rising social acceptance of alcohol consumption.
- In terms of regional analysis, urban areas are expected to be the fastest-growing and dominating region in the market, driven by higher incomes and changing lifestyles.
- Key players operating in the India Alcohol Market include United Spirits Limited, Tilaknagar Industries Ltd, Jagatjit Industries, Mohan Meakin, Globus Spirits, Allied Blenders and Distillers Pvt., SAB Miller, Radico Khaitan Limited, Khemani Group, SOM Distilleries and Breweries, and Carlsberg A/S. These players are constantly focusing on product innovation, expanding their distribution networks, and engaging in strategic collaborations to strengthen their market position.
In conclusion, the India Alcohol Market is poised for significant growth in the coming years. Factors such as increasing disposable income, rising social acceptance, and the growing popularity of craft and premium drinks are expected to drive market expansion. However, high taxation and regulations, along with health concerns related to alcohol consumption, pose challenges to market growth.