India Alcohol Market is Estimated to Witness High Growth Owing to Rising Consumption of Premium Alcoholic Beverages
The India alcohol market is estimated to be valued at US$ 49,580 Mn 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, wine, rum and other spirits. Beer holds a major share in the India alcohol market owing to rising demand from young population. The increasing socializing trend among middle-class population has also attributed to growth of craft beer industry in the country. Wine consumption is also growing steadily owing to change in lifestyle and consumption pattern of Indian consumers.
Market Dynamics:
Rising disposable income: Growing middle-class population with increasing disposable income is a key factor driving growth of premium and super premium segments in the India alcohol market. According to National Commission on Population, per capita GDP in India is estimated to cross US$ 3000 by 2023 leading to increased spending on luxury items.
Rising young urban population: India has one of the largest young urban population in the world which is adopting western drinking culture and experimenting with premium alcoholic beverages. The young demographic has higher inclination towards new flavors and varieties which is fueling growth of craft beer segment in the country.
SWOT Analysis for India Alcohol Market
Strength: India has a strong drinking culture and tradition. The young population of India is driving the growth of the sector. Alcohol consumption is seen as a sign of social status and affluence in certain parts of India. However, the regulatory framework is still restrictive.
Weakness: Heavy taxation imposed by the state governments increases the cost of production. Rise in health consciousness and restrictions on marketing and availability are challenging the industry. Strict rules and regulations are limiting expansion plans of companies.
Opportunity: Increasing disposable incomes, growing acceptability of foreign brands, and easing of regulations in some states provide lucrative opportunities. Changing consumer preferences present scope to introduce new premium brands. Export potential to other countries is untapped.
Threats: Health awareness campaigns and rise in non-alcoholic beverages are threatening demand. Strict rule enforcement and total bans can dent prospects. Rising input costs, inflation, and economic slowdowns pose risks.
Key Takeaways
The global India Alcohol Market Growth is expected to witness high growth, exhibiting CAGR of 6.5% over the forecast period, due to increasing disposable incomes. Changing lifestyles and rising exposure to global drinking cultures are further augmenting market growth.
Regional analysis:
Northern Indian states dominate market share currently due to high consumption levels. However, Southern states are expanding rapidly led by strong economy, cosmopolitan culture and rising purchasing power. Western and Eastern regions offer immense headroom for higher consumption in the future given large population bases.
Key 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, Globus Spirits. These companies are investing in premium brands, innovating products, and expanding distributions to strengthen market position.
For more insights, read- https://cmiinfonest.blogspot.com/2023/12/artificial-intelligence-is-fastest.html
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