July 7, 2024

India Alcohol : Alcohol Consumption Patterns in India

Traditionally, alcoholic beverages like toddy, fenny, and arrack were widely consumed across various regions of the country. However, consumption was usually moderate and part of local customs and festivals rather than a daily habit. Over time, foreign alcoholic drinks like beer, wine and spirits were also introduced and gained popularity among certain sections of society. Today, India alcohol   as well as being one of the largest importers of foreign alcoholic beverages.

Types of Alcohol Commonly Consumed

India is home to a variety of locally produced alcoholic drinks. The most widely consumed types include the following:

– Indian Made Foreign Liquor (IMFL): This refers to commercially produced whisky, rum, vodka, gin and brandy. Major domestic companies like United Spirits and Radico Khaitan dominate this segment.

– Beer: Both strong beers and mild beers are popular across regions. Leading domestic breweries are United Breweries and Mohan Meakin. Multinational brands like Kingfisher and Budweiser are also widely available.

– Wine: India is emerging as a key   for wine though per capita consumption is still low. Both Indian wine producers and international labels are gaining traction.

– Country Liquor: India Alcohol  This includes a range of locally brewed or distilled drinks like fenny, arrack, toddy, daru etc. Production methods and alcohol content varies widely between varieties.

– Imported alcoholic beverages: While IMFL and beer dominate, imports of premium international liquor, champagne, single malts and craft beers are on the rise among urban elite consumers.

Changing Demographics of Drinkers

Over the decades, the profile of Indian alcohol consumers has transformed significantly due to socio-economic changes. Some of the prominent trends observed are:

– Increase in female drinking: Earlier predominantly a male-dominated habit, more women across age groups are now openly consuming alcohol socially and recreationally.

– Younger demographic: Exposure to globalized lifestyles andpeer pressure have led to rising consumption among those as young as 18-25 years compared to older generations.

– Urban premiumization: Rapid urbanization and rising income levels have spurred demand for imported and premium domestic brands consumed as a sign of status and luxury.

– Rural uptake: Improved connectivity and disposable incomes mean country liquor and mild beer are no more exclusive to villages with even women partaking moderate amounts.

Regional Variations in Preferences

Like cuisines and customs, Indian alcohol preferences differ vastly between states and localities based on regional brewing traditions and religious beliefs. Some examples are:

– West Bengal, Odisha, Jharkhand: Fenny, arrack and rice beer remain popular in eastern India due to historical consumption patterns.

– Goa, Mumbai: Goan fenny and fenny-based country spirits are widely consumed. Mumbai favors IMFL or beer at bars and events.

– Punjab, Haryana: Local brews like lassi, daru and bhang compete with national beer brands in northern heartland states.

– Kerala, Tamil Nadu: Coconut arrack has a huge following across southern India with toddy also part of rituals and folklore.

– Northeast: Indigenous fermented beverages made from ingredients like mushrooms, rice, honey dominate the northeastern region.

Legal Framework

The legal framework for alcohol production, distribution and consumption in India involves various central and state level acts and regulations. This will drive the demand for India alcohol  . Some of the key aspects governed are:

– Pricing: State-decided retail prices aim to balance excise revenue and curb misuse through excessive affordability.

– Age Restriction: Minimum legal age varies from 18 to 25 years between states to purchase alcohol from licensed retail shops.

– Licensing: Manufacturing, wholesale, import and retail operations all require different licenses and adhering to excise obligations.

– Advertising: Media promotion beyond point-of-sale is banned except surrogate ads to discourage irresponsible drinking.

– Dry Days: Several national festivals and events involve a temporary alcohol sale prohibition across states for religious or social reasons.

Overall, while per capita consumption is lower than global averages, the India alcohol   remains an important component of India’s commerce, culture and agriculture. With further GDP and income growth projected, it will be interesting to see how demand, preferences and the supporting policy paradigm continues to develop nationwide over the next decade.

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