Marketing Strategies of Alcohol Industry in India

Market Overview
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. Growing demand for alcoholic
beverages in India is majorly attributed to the huge young 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 alcoholic beverages market over the
forecast period at rapid pace. Additionally, rapid urbanization of tier-II cities is further
fueling the market growth.

Goldstein Research analyst forecast the India alcoholic beverages market to grow at a CAGR
of 7.4% during the forecast period 2017-2030. Further, the market is anticipated to reach
USD 39.7 billion by the end of forecast period as alcohol consumption is growing in urban
areas of the country.

Potential Market Segments

Based on origin type, Indian Made Foreign Liquor (IMFL) accounted for the largest market
share of more than 40% in 2016. On the other hand, foreign liquor bottled in origin or
imported alcohols showed the fastest growth in terms of consumption in last few years and
likely to grow at faster pace with CAGR of 25% over the forecast period.

Geographically, South India accounted for the largest market share of more than 45% in
terms of alcohol consumption owing to significant rise in urban and female alcohol
consumers in the region. North India and Western India are expected to be fastest growing
markets owing to growing number of urban cities in these regions and presence of favorable
demographic factors.

Market Dynamics
Growth Drivers: According to our India Alcoholic Beverages market study on the basis of
extensive primary and secondary research, “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 6teh growth of alcohol beverage industry growth.”

According to the report, major driver in India alcoholic beverages market is growing
consumption of alcohol owing to rapid urbanization 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.

Challenges: Further, the report states that one challenge in India alcohol beverage market is
liquor licensing and sourcing. In terms of starting new business and expansion liquor
licensing and sourcing emerged as the major growth barrier for the industry, as the
necessity to obtain number of mandatory licenses and regulation related to hours of
operation and consumers minimum age, which varied from state to state.

Key Market Players

Our India Alcoholic Beverages market report comprises of the following companies as the
key players in the India alcoholic beverages market.

 SABMiller plc
 Anheuser-busch InBev
 Carlsberg
 United Breweries Ltd.
 Mohan Meakins
 Radico Khaitan
 United Spirits
 United Breweries
 Tilaknagar Inds.
 Som Distilleries
 Globus Spirits
 Heineken NV
 Carlsberg breweries A/S
 Beam Suntory
The study was conducted using an objective combination of primary and secondary
information including inputs from key participants in the industry.