OVERVIEW OF INDIAN MARKET
India’s alcohol industry is the third largest in the world with a value of $35 billion. India alcoholic beverage industry is one of the biggest alcohol industry across the globe only behind from two major countries such as China and Russia. India’s spirit sector -- which includes whiskey, brandy, rum and vodka -- is estimated to expand 25 percent to 2.92 trillion rupees ($41 billion) by 2022, according to Euromonitor International.
Growing demand for alcoholic beverages in India is majorly attributed to the huge young a population base and growing consumption of alcohol by the young generation as well as rising disposable income is strengthening the industry growth. With population of 1.3 billion India is one of the largest consumer markets across the globe. It is also demographically one of the youngest with around 50% of its population below the age of 25 and around 65% below the age of 35. The majority of alcohol volume is consumed by people between the ages of 18 and 40. These demographic stats are expected to fuel the growth of the alcoholic beverages market over the forecast period at a rapid pace. Additionally, rapid urbanisation of tier-II cities is further fueling the market growth.
The driving Factor:
The rising affluence of India’s middle class will drive the growth of as much as 10 percent a year in the $33 billion spirits market. Over the past few years, there has been a huge change in attitudes and lifestyle, making consumption of alcohol more socially acceptable. This acceptability of alcohols extends to drinking in family environments, at social events, and by females/youngsters. The growing acceptability and changing social norms have significantly boosted the growth of alcohol beverage industry growth.
According to a report, a major driver in India alcoholic beverages market is growing consumption of alcohol owing to rapid urbanisation and favourable demographics in the country. Huge population in India are migrating towards bigger cities, where they are exposed to a wider variety of alcoholic beverage products, including IMFL and significantly contributing to the market growth. India is a young country, with more than 55 per cent of Indians falling in the 18-45 years age group. This is the age group the industry targets as potential customers.
From just two about 10 years ago, craft microbreweries have proliferated, and India is home to over 170 outlets now, mostly located in Bengaluru, Gurgaon, Mumbai and Pune. This, in turn, has helped the overall industry grow on the back of a rising number of outlets, increasing affluence and a younger clientele seeking a more varied experience. Also, it has triggered a wave of newer craft beer brand launches from labels such as Bira, White Rhino, White owl, Kati Patang and Simba.