by The India alcohol market is comprised of beer, wine, and spirits which are consumed for enjoyment and recreation at social gatherings. Beer accounts for over 60% of India’s alcohol market due to hot climatic conditions. Beer is consumed regularly in pubs, bars, nightclubs, and restaurants. Spirits such as whiskey, rum, vodka and brandy are also popular among adults for celebrations and socializing. Changing mindsets and rising social acceptance have led to a growth in consuming alcohol in public places across major Indian cities.
The global India alcohol market is estimated to be valued at US$ 49580 million in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Rising Social Acceptance of Alcohol Consumption: Better infrastructure, improving economy and proliferation of pubs, bars and restaurants have contributed to greater social acceptance of alcohol consumption in urban India. Changing attitudes and growing middle class have normalized drinking at parties, restaurants and other social settings. This increasing social approval especially among young professionals has boosted the demand for beer, spirits and premium wines in the country’s alcohol market.
Urbanization fueling market growth: Rapid urbanization, rising disposable incomes and growing socializing opportunities are driving the consumption of alcohol in India’s metropolitan cities. Expanding young urban population influencers, exposure to global drinking culture and availability of imported premium brands have spurred the sales of alcoholic beverages in urban pockets. Higher acceptance levels coupled with growing economic prosperity in India’s tier I and tier II cities continues to support market expansion.
Segment Analysis
The India alcohol market is dominated by the beer segmentwhich holds around 50% share. Beer is the most popular category due to increasing socialization and young population preferring beer over hard spirits. Rising disposable income has increased affordability of premium brands that is driving the segment. Within beer, premium brands that offer variety in flavor and taste are growing faster compared to low-priced brands.
PEST Analysis
Political: The government permits states to independently levy duties and regulate alcohol. However, federal taxes and regulations apply. Some states discourage alcohol consumption by reducing trading hours.
Economic: Rising income and spending power is driving growth. Urbanization and modern retail are increasing accessibility and breaking social stigmas related to alcohol. However, inflationary conditions can dampen demand.
Social: Exposure to global trends and cultures is changing cultural norms. Young urban population is more open to new experiences including social drinking. However, some sections still consider alcohol consumption as a taboo.
Technological: Digital platforms are helping companies launch innovative products, run awareness campaigns and gain consumer insights. E-commerce is also expanding access and trial of new brands.
Key Takeaways
The India Alcohol Market Size was valued at US$ 49580 million in 2024 and is expected to grow at a CAGR of 5.6% during the forecast period.
Regional analysis: The northern region accounts for around 30% share led by states like Delhi, Uttar Pradesh and Haryana. Per capita consumption is higher here due to widespread bar and pub culture. Western region including Maharashtra and Gujarat holds 25% share as alcohol is deeply ingrained in local social events and occasions here.
Key players operating in the India alcohol market are Brand Energy & Infra (BEIL), Diageo India, Pernod Ricard, Radico Khaitan, Globus Spirits, Allied Blenders and Distillers Pvt., SABMiller, Tilaknagar Industries, and United Spirits. BEIL has emerged as the market leader with its popular beer brands targeting youth. Diageo and Pernod Ricard have grown via innovations and expanding portfolio into different categories and price points.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
