by The global India Alcohol Market is estimated to be valued at US$ 49,580 Mn or in 2023 and is expected to exhibit a CAGR of 6.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The India alcohol market consists of alcoholic beverages such as beer, whiskey, rum, wine, and other liquors. Beer is the most preferred type of alcohol consumption in India. The growing purchasing power and evolving lifestyles of the middle-income population are propelling the demand for premium and new variety of alcoholic beverages in the country. Moreover, strong marketing campaigns by key players for their premium brands is augmenting the growth of India alcohol market.
Market key trends:
The key trends in the India alcohol market include growing consumption of craft and premium beers. With rising disposable income, young demographics in India are experimenting with new categories of beers including craft beers. Moreover, increasing penetration of international liquor brands in the country is also fueling the demand for premium liquor products. Another major trend is the rising popularity of Indian made foreign liquor (IMFL) over country liquor. IMFL products offer wide variety and premium propositions attracting more consumers shifting from country liquor.
Porter’s Analysis
Threat of new entrants: The India alcohol market is fairly concentrated and poses moderate barriers to entry including high capital costs and established brand acceptance for leading players. However, the market still offers opportunities for new entrants with disruptive products.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitutes and differentiated products from major players. However, buyers remain loyal to established brands.
Bargaining power of suppliers: Major suppliers have low to moderate bargaining power since raw materials used in manufacturing alcohol are widely available. However, suppliers of unique ingredients can negotiate better.
Threat of new substitutes: Threat of new substitutes is moderate as consumers are increasingly switching to substitute beverages like fruit juices, carbonated drinks, and milk-based drinks. However, alcohol is still a preferred social beverage.
Competitive rivalry: Rivalry is high amongst the top players with increasing private labels coming up as competition. Players compete on price, brand, and innovation to gain market share.
Key Takeaways
The global India Alcohol Market Share is expected to witness high growth, exhibiting CAGR of 6.5% over the forecast period, due to increasing consumption among millennials and rising social media influence. The market size for India alcohol market is estimated to reach US$ 73,751 Mn by 2030 from US$ 49,580 Mn in 2023.
Regional analysis: North India dominates the market currently holding over 35% share led by states like Delhi, Haryana and Uttar Pradesh. However, South India is expected to witness fastest growth over 7% CAGR owing to changing lifestyle and drinking habits in states like Kerala and Karnataka. West and East India also offer lucrative opportunities for players.
Key players operating in the India alcohol market are SABMiller plc, Anheuser-busch InBev, Carlsberg, United Breweries Ltd., Mohan Meakins, Radico Khaitan, Heineken NV, Tilaknagar Inds., Som Distilleries. Key players are focused on expanding their product portfolio through innovation and offering niche products to attract young demographics. Companies are also investing in brand establishment and campaigns on social media to increase consumer outreach.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
