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 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
The India alcohol market includes products such as beer, whiskey, rum, wine and others. Beer is the largest and the fastest growing segment in the India alcohol market. The rising disposable incomes and changing lifestyle are increasing the demand for premium and crafted beer in the country. India has a large young population in urban areas who are willing to experiment and premiumize their alcohol consumption patterns.

Market key trends:
One of the key trends fueling growth of the India alcohol market is rising young urban population in the country. India has one of the largest young populations globally with around 600 million people under the age of 25. This young demographic predominantly resides in urban centers of India and have higher disposable incomes. They are inclined towards experimenting with western alcohol drinks like craft beers and premium whiskies. The growing exposure to international cuisines and cultures has further spurred the demand for new and premium varieties of alcohol in India. This emerging young demographic is driving high growth of beer and high-end spirits segment in the country. Their evolving tastes and preferences will continue shaping trends in the India alcohol market over the coming years.

Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the market is growing. However, high branding and distribution cost acts as a barrier for new players.

Bargaining power of buyers: The bargaining power of buyers is high as there are numerous established brands for buyers to choose from. Buyers can easily switch to substitutes if brands do not offer competitive prices.

Bargaining power of suppliers: Suppliers have moderate bargaining power due to standard ingredients and production process used across the industry. Established players have more bargaining power over suppliers.

Threat of new substitutes: The threat of new substitutes is high due to availability of various intoxicating drinks such as wine and hard seltzers.

Competitive rivalry: High as major players compete on pricing, branding and innovation.

SWOT Analysis

Strength: Wide brand recognition of established players. Growing preference for premium drinks among middle class consumers.

Weakness: Taxation policies and regulations can impact profitability. Stringent rules regarding advertising and promotion.

Opportunity: Rising disposable incomes and changing lifestyle in tier 2 and tier 3 cities. Potential for new product launches and flavor innovations.

Threats: Increased health awareness and risk of alternative addictive habits like smoking. Surging inflation can reduce discretionary spending.

Key Takeaways

The global India Alcohol Market Share is expected to witness high growth, exhibiting CAGR of 6.5% over the forecast period, due to increasing spending on luxury and premium drinks. Rising disposable incomes coupled with changing consumer preference for spending on experiences is driving market growth.

Regional analysis: The India alcohol market is dominated by Southern and Western regions which account for over 60% share due to high consumption in states like Maharashtra and Andhra Pradesh. Northern region is the fastest growing market supported by growing disposable incomes in cities like Delhi NCR and urban Uttar Pradesh.

Key players operating in 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. Key players are focusing on new product innovations, expansion into newer markets and categories to consolidate their leadership position.

For more insights, read- https://www.pressreleasebulletin.com/india-alcohol-market-trends-size-and-share-analysis/