February 21, 2024
Alcohol Market

India Alcohol Market Is Estimated To Witness High Growth Owing To Rising Disposable Income

The global India Alcohol Market is estimated to be valued at INR 2,807,236.7 Bn in 2023 and is expected to exhibit a CAGR of 7.8% over the forecast period 2023 to 2030.

A) Market Overview:

The India Alcohol Market includes various types of alcoholic beverages, including spirits, beer, and wine. The market is driven by factors such as increasing disposable income, changing lifestyles, and a growing preference for alcoholic beverages among the younger population. Alcoholic beverages are widely consumed during social gatherings, celebrations, and for recreational purposes. They are also being increasingly used in the hospitality industry and restaurants. The market offers a wide range of products with different flavors and alcohol content, catering to the diverse preferences of consumers.

B) Market key trends:

One key trend in the India Alcohol Market is the increasing demand for craft and premium alcoholic beverages. Consumers are willing to pay more for high-quality and unique alcoholic beverages, which has led to the growth of craft breweries and premium spirits. Craft beer, for example, is gaining popularity among millennials who appreciate the craftsmanship and distinct flavors offered by microbreweries. This trend is also driven by the growing preference for authentic, artisanal products and the desire to support local businesses. For instance, United Spirits Limited has introduced premium brands such as Royal Challenge, Signature, and McDowell’s No.1.

C) Porter’s Analysis:

Threat of new entrants: The India Alcohol Market has high entry barriers due to the stringent regulatory requirements and licenses needed to produce and sell alcoholic beverages. The existing players have a strong foothold in the market, making it difficult for new entrants to compete.

Bargaining power of buyers: The bargaining power of buyers in the India Alcohol Market is moderate. While consumers have numerous options to choose from, the market is dominated by established brands. However, consumers can still influence the market through their preferences and demand for specific products.

Bargaining power of suppliers: The bargaining power of suppliers in the India Alcohol Market is moderate. Suppliers of raw materials such as grains, fruits, and packaging materials have some bargaining power, but the market is not highly dependent on specific suppliers.

Threat of new substitutes: The threat of substitutes in the India Alcohol Market is relatively low. Alcoholic beverages have been deeply ingrained in Indian culture and social gatherings, making it difficult for non-alcoholic alternatives to replace them completely.

Competitive rivalry: The India Alcohol Market is highly competitive, with numerous players vying for market share. Key players such as United Spirits Limited, Tilaknagar Industries Ltd, and Mohan Meakin have strong brand presence and extensive distribution networks.

D) Key Takeaways:

  1. The India Alcohol Market is expected to witness high growth, exhibiting a CAGR of 7.8% over the forecast period, due to increasing disposable income and changing lifestyles. Consumers are willing to spend more on premium and craft alcoholic beverages.
  2. The market is dominated by regions such as North India, which has a high consumption of spirits, and Maharashtra, which is a major market for beer. These regions are expected to continue driving the growth of the India Alcohol Market.
  3. 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 Millier, Radico Khaitan Limited, Khemani Group, SOM Distilleries and Breweries, and Carlsberg A/S. These players have a strong market presence and offer a wide range of alcoholic beverages to cater to different consumer preferences.

To summarize, the India Alcohol Market is witnessing high growth due to rising disposable income, changing lifestyles, and the increasing demand for premium and craft alcoholic beverages. The market is competitive, with key players dominating different regions and offering a diverse range of products.

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