July 20, 2024
India Alcohol Marke

Global India Alcohol Market Is Estimated To Witness High Growth Owing To Increasing Consumption of Alcohol among the Youth

 Market Overview:

The Indian alcohol market comprises various types of alcoholic beverages such as spirits, beer, and wine. The market is driven by factors such as changing lifestyles, increasing disposable income, and social acceptance of alcohol consumption. The demand for alcohol products is particularly high among the youth population due to their changing preferences and willingness to experiment with different flavors and brands. The market offers a wide range of alcoholic beverages, catering to the varied tastes and preferences of consumers.

The global Indian alcohol market is estimated to be valued at INR 2,807,236.7 billion in 2023 and is expected to exhibit a CAGR of 7.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Key Trends:

One key trend in the Indian alcohol market is the increasing consumption of craft beer. Craft beer is gaining popularity among consumers as it offers unique flavors, higher quality, and a more artisanal experience compared to mainstream beers. With the growing trend of urbanization and westernization, craft beer is becoming a preferred choice for younger consumers who are looking for different taste experiences. For example, Bengaluru-based microbreweries such as Toit Brewpub and Arbor Brewing Company are successfully capitalizing on this trend by offering a wide range of craft beers with varied flavors.

 PEST Analysis:

  1. Political: The India Alcohol Market regulates the alcohol industry through various laws and regulations such as excise duties and licensing requirements. Political stability and government policies play a crucial role in shaping the growth of the alcohol market.
  2. Economic: Increasing disposable income among the Indian population has led to higher spending on entertainment and lifestyle, including alcohol consumption. Economic factors such as GDP growth and inflation rates also impact the purchasing power of consumers.
  3. Social: Alcohol consumption is deeply ingrained in Indian culture and is often associated with socializing, celebrations, and festivals. However, social factors such as changing perceptions on health and wellness can influence the demand for alcohol products.
  4. Technological: Advancements in technology have improved the production, packaging, and distribution processes in the alcohol industry. Technology also plays a key role in marketing and promoting alcoholic beverages through digital platforms and e-commerce
  5.  Key Takeaways:

  6. The global Indian alcohol market is expected to witness high growth, exhibiting a CAGR of 7.8% over the forecast period, due to increasing consumption of alcohol among the youth population. The changing lifestyles and preferences of consumers are driving the demand for a wide range of alcoholic beverages.
  7. Regionally, India dominates the Indian alcohol market, accounting for the largest share due to its large population and growing disposable income. The country also has a vibrant drinking culture with various local and regional alcohol brands.
  8. Key players operating in the global Indian 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 focus on product innovation, branding, and expansion strategies to maintain a competitive edge in the market.

In conclusion, the global Indian alcohol market is poised for significant growth in the coming years due to increasing consumption among the youth population. The market offers lucrative opportunities for both domestic and international players, who are focusing on product innovation and branding to cater to the evolving preferences of consumers.

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