by The Indian alcohol market has seen exponential growth in recent years on account of rising disposable income levels and changing social attitudes among younger consumers. Alcoholic beverages were earlier seen as luxury goods but are now becoming mainstream with the proliferation of craft beers, premium spirits and wine varieties catering to evolving tastes. The extensive availability of alcoholic drinks through mainstream retailers as well as dedicated liquor stores and bars has further fueled consumption.
The market comprises beers, wines along with Indian-made foreign liquor or IMFL which includes whisky, rum, vodka, gin and brandy. Beer is the most popular category led by companies promoting premium and craft varieties. Whisky remains the preferred spirit led by brands in the premium and super premium segments. The ready-to-drink or RTD segment has gained popularity among young urban consumers seeking convenience. Innovation is also seen in product formats including flavored alcohol.
The global India Alcohol Market is estimated to be valued at US$ 57116.16 Mn in 2024 and is expected to exhibit a CAGR of 5.6% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends witnessed in the Indian alcohol market is the rising prominence of craft and artisanal products. Micro-breweries and craft distilleries are introducing unique flavors, limited editions and customization options appealing to discerning consumers. Craft beers, handcrafted gins, single malts and boutique wines have found favor among urban populations seeking an experience over regular mass-produced varieties. This experimentation and willingness to pay premium prices for novel products have driven the craft segment’s double-digit growth in recent years. The spiraling popularity of experiential drinks bodes well for the Indian specialty alcohol market looking to 2031.
Porter’s Analysis
Threat of new entrants: The Indian alcohol market has strict regulations on alcohol production and distribution. New players need significant capital to establish production and distribution networks.
Bargaining power of buyers: Buyers in the India alcohol market have moderate bargaining power due to the availability of substitutes and variety of brands. However, established brands have strong buyer loyalty.
Bargaining power of suppliers: Suppliers of raw materials like grains have moderate bargaining power due to established supply chains of major players.
Threat of new substitutes: Alternatives like packaged water, carbonated drinks, and juice provide competition.
Competitive rivalry: Major players compete on brand, price, distribution. Local producers add competition.
Key Takeaways
The Global India Alcohol Market Size is expected to witness high growth. The global India Alcohol Market is estimated to be valued at US$ 57116.16 Mn in 2024 and is expected to exhibit a CAGR of 5.6% over the forecast period 2024 to 2031.
The western regions of India such as Gujarat and Maharashtra are expected to dominate the India alcohol market owing to high consumption and presence of major players.
Key players operating in the India Alcohol market are Brand Energy & Infrastructure Services, Layher Holding GmbH & Co. KG, Safway Group Holding LLC, ULMA Construction, PERI GmbH, Altrad Group. Major players are focusing on expanding their production capacity and distribution networks to tap into the growing rural markets.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
