According to the report, the India alcohol market size reached approximately USD 64.19 billion in 2023. Aided by the increasing demand for premium alcoholic beverages and the growing consumption across various demographics, the market is projected to grow at a CAGR of 6.7% between 2024 and 2032, reaching a value of around USD 115.27 billion by 2032.
Alcohol, encompassing a range of beverages such as beer, wine, and spirits, plays a significant role in India's social and cultural fabric. The market includes diverse products catering to different consumer preferences and occasions. The rising disposable incomes, urbanisation, and changing lifestyle patterns are driving the consumption of alcoholic beverages in India.
The increasing consumer preference for premium and craft alcoholic beverages is a primary driver of the India alcohol market growth. With the growing awareness of different types of alcoholic beverages and the influence of global trends, there has been a significant shift towards high-quality, premium products. This trend is particularly noticeable among the urban population, who are willing to spend more on unique and sophisticated drinking experiences.
Additionally, the rising trend of social drinking and the increasing acceptance of alcohol consumption in social settings are propelling the India alcohol market expansion. The younger demographic, in particular, is more inclined towards socialising over drinks, contributing to the growing demand for alcoholic beverages. The proliferation of bars, pubs, and lounges in urban areas has further supported this trend.
The expanding applications of alcohol in various sectors also play a significant role in propelling the India alcohol market development. The hospitality sector, including hotels, restaurants, and resorts, is a major consumer of alcoholic beverages, catering to both domestic and international guests. The growing tourism sector in India is also driving the demand for alcohol, as tourists often indulge in local and international alcoholic beverages during their stay.
The increasing adoption of digital marketing and e-commerce platforms for alcohol sales is contributing to the market growth. The convenience of online shopping, coupled with the availability of a wide range of products and competitive pricing, is attracting consumers to purchase alcoholic beverages online. This trend has been further accelerated by the COVID-19 pandemic, which led to the closure of physical stores and increased reliance on online platforms.
Furthermore, the introduction of innovative products and flavours in the alcoholic beverages segment is surging the India alcohol market value. Manufacturers are focusing on developing new and unique products to cater to the evolving consumer preferences. This includes the introduction of flavoured spirits, craft beers, and ready-to-drink cocktails, which are gaining popularity among consumers.
The beer segment holds a significant share of the market, driven by the increasing consumption among the younger population. The availability of various types of beer, including lager, ale, and craft beer, is attracting a wide range of consumers.
Other alcoholic beverages, including traditional Indian liquors and ready-to-drink cocktails, are also gaining popularity. The introduction of innovative products and flavours in this segment is attracting consumers.
As per the India alcohol market analysis, the off-trade distribution channel, including retail stores, supermarkets, and hypermarkets, holds a significant share of the market. The availability of a wide range of products and the convenience of purchasing from these stores are driving the demand through this channel.
The online distribution channel is gaining traction, driven by the convenience of online shopping and the availability of a wide range of products. The COVID-19 pandemic has further accelerated the shift towards online platforms for purchasing alcoholic beverages.
Alcohol, encompassing a range of beverages such as beer, wine, and spirits, plays a significant role in India's social and cultural fabric. The market includes diverse products catering to different consumer preferences and occasions. The rising disposable incomes, urbanisation, and changing lifestyle patterns are driving the consumption of alcoholic beverages in India.
The increasing consumer preference for premium and craft alcoholic beverages is a primary driver of the India alcohol market growth. With the growing awareness of different types of alcoholic beverages and the influence of global trends, there has been a significant shift towards high-quality, premium products. This trend is particularly noticeable among the urban population, who are willing to spend more on unique and sophisticated drinking experiences.
Additionally, the rising trend of social drinking and the increasing acceptance of alcohol consumption in social settings are propelling the India alcohol market expansion. The younger demographic, in particular, is more inclined towards socialising over drinks, contributing to the growing demand for alcoholic beverages. The proliferation of bars, pubs, and lounges in urban areas has further supported this trend.
The expanding applications of alcohol in various sectors also play a significant role in propelling the India alcohol market development. The hospitality sector, including hotels, restaurants, and resorts, is a major consumer of alcoholic beverages, catering to both domestic and international guests. The growing tourism sector in India is also driving the demand for alcohol, as tourists often indulge in local and international alcoholic beverages during their stay.
The increasing adoption of digital marketing and e-commerce platforms for alcohol sales is contributing to the market growth. The convenience of online shopping, coupled with the availability of a wide range of products and competitive pricing, is attracting consumers to purchase alcoholic beverages online. This trend has been further accelerated by the COVID-19 pandemic, which led to the closure of physical stores and increased reliance on online platforms.
Furthermore, the introduction of innovative products and flavours in the alcoholic beverages segment is surging the India alcohol market value. Manufacturers are focusing on developing new and unique products to cater to the evolving consumer preferences. This includes the introduction of flavoured spirits, craft beers, and ready-to-drink cocktails, which are gaining popularity among consumers.
The beer segment holds a significant share of the market, driven by the increasing consumption among the younger population. The availability of various types of beer, including lager, ale, and craft beer, is attracting a wide range of consumers.
Other alcoholic beverages, including traditional Indian liquors and ready-to-drink cocktails, are also gaining popularity. The introduction of innovative products and flavours in this segment is attracting consumers.
As per the India alcohol market analysis, the off-trade distribution channel, including retail stores, supermarkets, and hypermarkets, holds a significant share of the market. The availability of a wide range of products and the convenience of purchasing from these stores are driving the demand through this channel.
The online distribution channel is gaining traction, driven by the convenience of online shopping and the availability of a wide range of products. The COVID-19 pandemic has further accelerated the shift towards online platforms for purchasing alcoholic beverages.
Market Segmentation
The India alcohol market can be divided based on type, availability of the raw material, and region.Market Breakup by Type
- Beer
- Indian Made Foreign Liquour (IMFL)
- Indian Made Liquour (IML)
- Alcopop / Sweetened Alcoholic Beverages
- Others
Market Breakup by Availability of the Raw Material
- ENA
- Molasses
- Corn
- Jowar
- Bajra
- Malt Spirit - Barley
- Graph Spirit
- Others
Market Breakup by Region
- North India
- South India
- East India
- West India
Competitive Landscape
The report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the India alcohol market. Some of the major players explored in the report are as follows:- Radico Khaitan Ltd.
- Pernod Ricard India Private Ltd.
- United Spirits Ltd
- Globus Spirits Limited
- Jagatjit Industries Limited
- Mohan Meakin Ltd
- Sula Vineyards Ltd
- United Breweries Ltd
- Som Distilleries and Breweries Ltd
- Tilaknagar Industries Ltd
- Others
Table of Contents
1 Preface2 Report Coverage - Key Segmentation and Scope4 Key Assumptions6 Market Snapshot7 Opportunities and Challenges in the Market16 Key Trends and Developments in the Market8. ENA Historical Price Trends and Forecast (2018-2028)9. Malt Spirit Historical Price Trends and Forecast (2018-2028)10. Graph Spirit Historical Price Trends and Forecast (2018-2028)
3 Report Description
5 Executive Summary
8 India Spirit and ENA Supply Outlook
9 India Alcohol Market Overview
10 India Alcohol Market by Type
11 India Alcohol Market by Availability of the Raw Material
12 India Alcohol Market by Region
13 Market Dynamics
14 Price Analysis
15 Competitive Landscape
List of Key Figures and Tables
11. Rum Spirit Historical Price Trends and Forecast (2018-2028)
Companies Mentioned
- Radico Khaitan Ltd.
- Pernod Ricard India Private Ltd.
- United Spirits Ltd
- Globus Spirits Limited
- Jagatjit Industries Limited
- Mohan Meakin Ltd
- Sula Vineyards Ltd
- United Breweries Ltd
- Som Distilleries and Breweries Ltd
- Tilaknagar Industries Ltd
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 186 |
| Published | July 2024 |
| Forecast Period | 2024 - 2032 |
| Estimated Market Value ( USD | $ 68.61 Billion |
| Forecasted Market Value ( USD | $ 115.27 Billion |
| Compound Annual Growth Rate | 6.7% |
| Regions Covered | India |
| No. of Companies Mentioned | 10 |
