India Alcoholic Beverage Market: Current Analysis and Forecast 2021-2027

Indian alcoholic beverage market generated revenue of US$ 45.6 billion in 2020. The market is expected to witness CAGR growth of ~4.8% during the forecast period 2021-2027. Consumption of alcohol in India has been increasing significantly. For instance, as per World Health Organization (WHO), average alcohol consumption in India was 5.7 liters per person above the age of 15 per year in 2016, up from 4.3 liters in 2010. Moreover, alcohol consumption in India amounted to about 5.4 billion liters in 2016 and was estimated to reach about 6.5 billion liters by 2020. As many as 57 million people are facing the after-effects of alcohol addiction. As per a survey by the Community Against Drunken Driving (CADD) revealed that over 88% of youth below 25, consume or purchase alcohol though it's illegal. Punjab, Goa, Tripura, Chhattisgarh, and Arunachal Pradesh rank high on alcohol consumption. However, Uttar Pradesh has the highest number of alcohol drinkers in India.
India is the biggest manufacturer of Alcoholic Beverages in the world. Alcoholic Beverages market is matured in India over the years but still it is highly confined to limited varieties. India has the third largest alcohol market in the world. For instance, the revenue of alcoholic drinks in the country was more than 67 billion dollars in 2018. Furthermore, the increased consumption of alcohol among the population is anticipated to propel the demand for Alcoholic Beverage in the forthcoming years. For instance, as per Health and Family Welfare Statistics (HFWS) report, percentage of the population of men and women in the 15-49 years who drink alcohol about once a week was found to be 45.2% and 55.1% respectively for women and men of Arunachal Pradesh. For women and men in Nagaland, the percentage of the population who drink alcohol about once a week in the 15-49 age group was found to be 65.5% and 46.4% respectively.
SABMiller plc, Anheuser-busch InBev, Carlsberg, United Breweries Ltd., Mohan Meakins, Radico Khaitan, Heineken NV, Tilaknagar Inds., Som Distilleries, Globus Spirits are some of the prominent players operating in the Indian Alcoholic Beverage market. Several M&A's along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products.
Insights Presented in the Report
"Amongst product, beer segment holds the major share"
Based on product, the global beer, wine, and distilled spirit. The Sorbitol segment dominated the market in 2020 and is expected to maintain its dominance during the forecast period owing to its low cost as compared to wine. For instance, Kingfisher beer is India's greatest selling beer brand with commanding market dominance and is widely popular among young beer lovers. The kingfisher price ranges between USD 1.61 to USD 2.02. Furthermore, the average volume per person in the Beer segment was expected to amount to 3.33 L in 2021.
"Amongst origin, confectionary & gum is anticipated to grow at the highest CAGR during the analyzed period"
Further based on origin, the market is fragmented into Indian Made Foreign Liquor (IMFL), Foreign Liquor Bottled in Origin (BIO), and country liquor. In 2020, Indian Made Foreign Liquor (IMFL) accounted for a maximum market revenue share and is expected to remain dominant during the analyzed period. According to data released by the Confederation of Indian Alcoholic Beverage Companies (CIABC), states such as Uttarakhand, Himachal Pradesh and Haryana reported over 40 per cent growth in IMFL sales during the fourth quarter of 2020-21, while Maharashtra and Goa reported 23 and 22% growth, respectively, as against the year-ago quarter.
"Amongst distribution channel, food & beverage segment is anticipated to grow at the highest CAGR during the analyzed period"
Based on distribution channel, the market is fragmented into offline distribution channel, online distribution channel, and on premises. In 2020, offline distribution channel segment accounted for a maximum market revenue share and is expected to remain dominant during the analyzed period owing to the lockdown restrictions at hotels, pubs, and bars.
"South India signifies one of the largest markets of Alcoholic Beverage Market"
For a better understanding of the market dynamics of the Alcoholic Beverage market, a detailed analysis was conducted for different regions across the globe including North India, South India, East India, and West India. South India dominated the market in 2020 owing to the high consumption of alcohol among the population along with increased number of vending shops has been contributing to the escalating demand of Alcoholic Beverage. For instance, Tamil Nadu is also the biggest consumer of liquor in the country with the state alone guzzling 13% of total alcohol consumption. Revenue from the sale of liquor across Tamil Nadu had hit a new peak, crossing the ?30,000-crore mark in 2019.
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- The study includes market sizing and forecasting analysis validated by authenticated key industry experts
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- Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
- The study comprehensively covers the market across different segments
- Deep dive regional level analysis of the industry
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India is the biggest manufacturer of Alcoholic Beverages in the world. Alcoholic Beverages market is matured in India over the years but still it is highly confined to limited varieties. India has the third largest alcohol market in the world. For instance, the revenue of alcoholic drinks in the country was more than 67 billion dollars in 2018.
Furthermore, about a third of India's population consumes alcohol on a regular basis and 11% of the total number of Indians are moderate or heavy drinkers. One-third of males and one-fourth of females in India who have made it a part of their lives say, in surveys, that it causes problems to their physical health, finances and household responsibilities. It has been observed that alcohol is an intricate and essential part of the Indian economy. India is also one of the highest consumer of alcohol worldwide. For instance, as per World Health Organization, an individual consumes about 6.2 liters of alcohol per year. India is one of the largest producers and consumers of spirits globally. Though it is driven primarily by whiskey growth, other subsegments like brandy, rum, vodka and gin have also been posting steady numbers in the last few years. The country's huge population (1.3 billion strong), rising disposable income and changing lifestyle are expected to boost the market for alcoholic beverages.
Based on product, the Indian Alcoholic Beverage market is segmented into beer, wine, and distilled spirit. Currently, beer dominated the market and is expected to maintain its dominance during the forecast period owing to its wide range of availability with high alcohol concentration at low prices.
Based on origin, the market is divided into Indian Made Foreign Liquor (IMFL), Foreign Liquor Bottled in Origin (BIO), and country liquor. Indian Made Foreign Liquor (IMFL) dominated the market in 2020 owing to easy availability of IMFL alcoholic beverages.
Based on distribution channel, the market is segmented into offline distribution channel, online distribution channel, and on premises. Currently offline distribution channel dominates the market and is expected to maintain its dominance during the analyzed period owing to the restriction on-premises dining and drinking due to COVID-19 outbreak.
For a better understanding of the market adoption, report provide detailed analysis for major region and countries including North India, South India, East India, and West India. South India constitutes a major market for Alcoholic Beverage on account of the increasing number of vending shops and hectic schedule of the consumers in the region.
Some of the major players operating in the market includes SABMiller plc, Anheuser-busch InBev, Carlsberg, United Breweries Ltd., Mohan Meakins, Radico Khaitan, Heineken NV, Tilaknagar Inds., Som Distilleries, Globus Spirits; etc.