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


PRODUCT [Beer(Ale, Lager, Hybrid), Wine (Sparkling, Fortified, Others), Distilled Spirit (Rum, Whiskey, Vodka, Others)]; ORIGIN (Indian Made Foreign Liquor (IMFL) ,Foreign Liquor Bottled in Origin (BIO), Country Liquor); DISTRIBUTION CHANNEL (Offline Distribution Channel, Online Distribution Channel, On-Premises)









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Research Methodology

Report Description

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.

Alcohol consumption among Indians in 2020 (percentage population), by City

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.

Reasons to buy this report:

  • The study includes market sizing and forecasting analysis validated by authenticated key industry experts
  • The report presents a quick review of overall industry performance at one glance
  • The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
  • 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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 1.1Market Definitions
 1.2Objective of the Study
 1.4Stake Holders
 1.5Currency Used in Report
 1.6Scope of the Indian Alcoholic Beverage Market Study
 2.1Research Methodology for the Indian Alcoholic Beverage Market
  2.1.1Main Objective of the Indian Alcoholic Beverage Market
 8.3Distilled Spirit
 9.1Indian Made Foreign Liquor (IMFL)
 9.2Foreign Liquor Bottled in Origin (BIO)
 9.3Country Liquor
 10.1Offline Distribution Channel
 10.2Online Distribution Channel
 12.1Market Drivers 
 12.2Market Challenges
 12.3Impact Analysis
 14.1Demand Side Analysis
 14.2Supply Side Analysis
  14.2.1Top Product Launches
  14.2.2Top Business Partnerships
  14.2.3Top Merger & Acquisitions
 18.1Porter’s Five forces analysis
  18.1.1Bargaining power of Supplier
  18.1.2Bargaining power of Buyer
  18.1.3Industry Rivalry
  18.1.4Availability of Substitute
  18.1.5Threat of new Entrants
 18.2Competitive Landscape
  19.2.1Company Shares, By Revenue
19.2SABMiller plc
19.3Anheuser-busch InBev
19.4Globus Spirits
19.5United Breweries Ltd.
19.6Mohan Meakins
19.7Radico Khaitan
19.8Heineken NV
19.9Tilaknagar Inds.
19.1Som Distilleries

Research Methodology

Analyzing the historical market, estimation of the current market, and forecasting the future market of the Indian Alcoholic Beverage Market were the three major steps undertaken to create and analyze the adoption of Alcoholic Beverage due to increased consumption of alcohol and illicit drugs. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the Alcoholic Beverage sector. Post assumption and validation of market numbers through primary interviews, we employed a top-down approach to forecast the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments the industry pertains to. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detailed secondary study was conducted to obtain the historical market size of the Alcoholic Beverage through company internal sources such as annual report & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the Alcoholic Beverage market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments for major regions. Major segments included in the report are product, origin and distribution channel. Further country-level analyses were conducted to evaluate the overall adoption of Alcoholic Beverage in every region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of Alcoholic Beverage. Further, we conducted factor analysis using dependent and independent variables such as increasing demand for organic food and the growing population. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, merger and acquisition, business expansion, and product launches in the Alcoholic Beverage industry across the globe.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the Alcoholic Beverage market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., top-down approach was applied to arrive at the market forecast about 2027 for different segments and subsegments across the major markets globally. The research methodology adopted to estimate the market size encompasses:

  • The industry’s market size, in terms of value (USD) and the adoption rate of Alcoholic Beverage across the major markets domestically
  • All percentage shares, splits, and breakdowns of market segments and sub-segments
  • Key players in the Alcoholic Beverage market in terms of services offered. Also, the growth strategies adopted by these players to compete in the fast-growing market

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

India Alcoholic Beverage Market
India Alcoholic Beverage Market

Market Engineering

Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the Alcoholic Beverage market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of the technology and application end-user of the Alcoholic Beverage market.

Main Objective of the Alcoholic Beverage Market Study

The current & future market trends of Alcoholic Beverage were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends were determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:

  • Analyze the current and forecast market size of Alcoholic Beverage in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments
  • Segments in the study include areas of product, origin, and distribution channel
  • Define and analysis of the regulatory framework for the Alcoholic Beverage industry
  • Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry
  • Analyze the current and forecast market size of the Alcoholic Beverage market for the major region
  • Major regions studied in the report include North India, South India, East India, and West India
  • Company profiles of the Alcoholic Beverage market and the growth strategies adopted by the market players to sustain in the fast-growing market
  • Deep dive regional level analysis of the industry