India Alcohol Market is Anticipated to Witness High Growth Owing to Increasing Disposable Income

India Alcohol Market is Anticipated to Witness High Growth Owing to Increasing Disposable Income

Beer consumption in India is growing at a fast pace owing to increasing disposable income and acceptance of modern lifestyles. India has a large population base, which represents a significant opportunity for alcohol producers. Factors such as improving economic conditions, rising disposable incomes, expanding organized retail, and changing consumer behavior are fueling the demand for quality alcohol products in the country.

The India Alcohol Market is estimated to be valued at US$ 57,116.16 Mn in 2024 and is expected to exhibit a CAGR of 5.6% over the forecast period 2024 to 2031.

Key Takeaways
Key players operating in the India Alcohol Market are Brand Energy & Infrastructure Services, Layher Holding GmbH & Co. KG, Safway Group Holding LLC, ULMA Construction, PERI GmbH, Altrad Group, MJ-Gerüst GmbH, Waco Kwikform Limited, Turbo Scaffolding, Simplified Scaffolding Pty Ltd., Hunan World Scaffolding Co., Ltd., Tianjin Wellmade Scaffold Co., Ltd., Apollo Scaffold Services Ltd., Pilosio S.p.A., Instant Upright. The India alcohol market provides numerous opportunities for both international and local players to expand their footprints. Changing consumer preferences towards craft and premium products represent an opportunity for new product development and customization. The youth population in India offers huge potential for alcohol brands. There is an opportunity for alcohol companies to expand their market share by increasing availability and visibility of their products through aggressive marketing strategies. Growing acceptance of modern lifestyles is opening up opportunities in Tier-II and Tier-III cities for alcohol companies to gain market share.

Key drivers such as rising disposable incomes, growing acceptance of western culture, changing social attitudes, increasing socialization in pubs & bars, and aggressive marketing by alcohol companies are fueling the growth of the India alcohol market. Economic growth resulting in higher discretionary spending power is driving alcohol consumption, especially within the urban population. The promotion of alcohol as a lifestyle product has influenced social and cultural changes in consumer behavior. However, factors such as cultural resistance to alcohol consumption in some parts, health issues associated with excessive drinking, and religious restrictions pose challenges to market growth. Stringent government regulations regarding alcohol advertisements and sales to certain age groups also restrain market expansion.

Market drivers: Growing disposable incomes of the rising middle class coupled with easy access to trendy liquor brands across modern retail outlets is a major factor driving the growth of the India alcohol market. Aggressive marketing strategies adopted by leading players is also fueling the demand.

Market restrain: Although growing at a impressive pace, the India alcohol market growth potential remains relatively untapped compared to developed markets due to several cultural factor. Social and cultural resistance to alcohol consumption in certain regions poses a major challenge. Moreover, stringent regulations governing sale and advertisement of alcohol products restrain the market.

Segment Analysis
In the India alcohol market, beer is the dominant sub-segment. Beer holds around 70% of the total alcohol market share in India. Beer is very popular among the young population in India. Easy availability, exposure to western culture and festivals & events promoting beer consumption has made beer the preferred alcohol beverage over others among the youngsters. Whiskey comes second with around 22% market share. Whiskey demand is mainly driven by older population of India and is popular as a premium drink during festivals and get-togethers.

Global Analysis
In terms of regions, Southern region dominates the India alcohol market and accounts for around 40% of total sales. States like Karnataka, Tamil Nadu, Kerala and Andhra Pradesh have very strong beer and whiskey market. North and West regions follow Southern in market size. Eastern region has the slowest growing alcohol market currently due to conservative social norms. However, with increasing westernization and entry of global alcohol brands, the Eastern region is expected to be the fastest growing regional market for alcohol over the forecast period.

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