The India alcohol market comprises alcoholic beverages such as beer, wine, and spirits. Beer dominat

Author : naufan cmi | Published On : 19 Jan 2024

The India alcohol market comprises alcoholic beverages such as beer, wine, and spirits. Beer dominates the India alcohol market, with increasing consumption of premium and craft beers. Craft breweries are introducing innovative flavors along with strong branding and marketing strategies to attract millennials.

The global India alcohol Market is estimated to be valued at US$ 49580 Mn or Mn in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
Increasing consumption of premium and craft beers continues to be a major driver for the India alcohol market. Changing consumer preference towards unique flavors and variants has accelerated the demand for craft beers in the country. Besides, craft breweries are focusing on effective branding and targeted marketing through social media and mobile apps to gain traction among young population. Additionally, growing socialization at pubs, bars and craft beer cafes has positively influenced the consumption of craft and premium beers in India. Furthermore, rising disposable incomes coupled with expansion of organized retail is broadening the market reach of new players. While craft breweries continue to report robust sales, regulatory challenges around licensing, taxation and distribution still remain long-term barriers for smooth operations and wider availability.

SWOT Analysis
Strength: India has a long history of alcohol production and consumption. Three main alcoholic beverages are produced domestically- beer, wine and spirits. Producing alcohol domestically lowers costs and risks. There is a huge domestic market size and growing middle class population is increasing demand.

Weakness: Strict regulations and high taxation increases costs of production. Low spending power of majority of population restricts premiumization. Changing social attitudes and health awareness is impacting consumption patterns especially among youth. Illicit drinking and spurious liquor continue to be challenges.

Opportunity: Rising disposable incomes is supporting premiumization and experimentation with new flavours, tastes and drinking occasions. E-commerce is opening new sales channels in smaller cities and towns. Tourism and duty free retail provides new growth avenues.

Threats: Growing health awareness and anti-alcohol campaigns can dent long term growth prospects. Restrictions on advertising and promotion limits brand building. Rising input costs and climate change impacting agriculture may increase production costs. Emergence of non-alcohol social drinks is diverting consumers.

Key Takeaways
The Global India Alcohol Market Size is expected to witness high growth over the forecast period supported by rising disposable incomes, changing social attitudes and experimentation with premium products.

Regional analysis indicates that Southern states currently dominate the market due to higher consumption levels. However, Eastern states are witnessing fastest consumption growth supported by economic development and urbanization. Key players operating in the India Alcohol Market are Brand Energy & Infrastructure, Diageo India, Mohan Meakin, Som Distilleries and Breweries and Globus Spirits.

Key players operating in the India Alcohol Market are focusing on expansion into new markets through acquisition of regional brands and distribution networks. Some recent examples include Diageo’s acquisition of United Spirits and Mohan Meakin’s buyout of Shaw Wallace. Companies are also launching new product variants tailored for youth and experimenters through innovations in branding and flavors. Stricter self-regulation on marketing and promotion are also expected from leading players to improve reputation. The market is anticipated to witness increasing consolidation and competitive intensity over the medium term.

Get more insights on this topic:
https://www.rapidwebwire.com/india-alcohol-market-demand/