Alcohol Industry

 India’s Alcohol industry is the third largest in the world, after China and Russia. Revenue in
the Alcoholic Drinks market amounts to $47.5 Billion in 2022. The market is expected to
grow annually by 8.86% (CAGR 2022-2025).
 The market's largest segment is the segment Spirits with a market volume of $33.14 Billion
in 2022.
 In the Alcoholic Drinks market, 0.4% of total revenue will be generated through online sales
by 2022. Only a handful of states—West Bengal, Maharashtra, Odisha, Jharkhand and
Chhattisgarh—allow alcohol delivery at home
 The Indian liquor industry comprises the Indian Made Foreign Liquor (IMFL), country liquor,
beer, wine, home brewed and other segments. Indian-made foreign liquor (IMFL), distilled
spirits, includes whisky, brandy, rum, gin, and vodka.

IMFL Industry

 The market size of IMFL market is $20 Billion. The market size is likely to increase to over
$32 Billion by the financial year 2025.

 United Spirits Limited by Diageo is the market leader in IMFL category

 Below is the category wise breakup of IMFL industry as per 2021

 Whisky

 Whiskey dominates the IMFL category, and India has the largest whiskey industry in the
world.
 Revenue in the Whisky segment amounts to US$17.66bn in 2022. The market is expected to
grow annually by 6.31% (CAGR 2022-2025).
 India-based United Spirits Limited’s McDowell’s No. 1 is the most prominent whiskey.
 Other popular Whiskey brand are - Royal Challenge and Bagpiper by USL, Japanese Beam
Global’s Teacher’s

As per 2018 report

Rum

 Rum is the second most common spirit in India. India-based Mohan Meakin Ltd.’s Old
Monk is popular.

Gin & Vodka

 Gin and vodka also comprise the IMFL category, growing in demand among urban youth and
women.
 Bermuda-based Bacardi’s Bombay Sapphire gin and U.K.-based Diageo’s Smirnoff vodka are
top products.

Distribution Structure:
Consumption Trends:

Overall, around 1% of Indian women aged 15 and over drink alcohol, compared to 19% of men in the
same age group. The alcohol consumption among both men and women was higher in rural parts of
the country than in urban areas

The north-eastern Arunachal Pradesh state ranks first nationwide, with 53% of men and 24% of
women in the state consuming alcohol.

India was one of the fastest-growing markets for liquor until the COVID pandemic hit consumption,
which dropped nearly 12% and whisky consumption reduced by 16%.

 South region contributes to the highest share in IMFL sales

Of all states, Arunachal Pradesh has the highest proportion of both men (53%) and women (24%)
who drink alcohol. Among women, Arunachal Pradesh is followed by Sikkim (16%); among men, it is
followed by Telangana (43%).

Future Trends

Risks: The Indian alcohol industry is a high-risk industry, on account of the high taxes and
innumerable regulations governing it.

By 2025, 4% of spending and 2% of volume consumption in the Spirits segment will be attributable
to out-of-home consumption (e.g., in bars and restaurants).

penetration of diff product categories across regions / states, analyst views on consumption

Reference links:

India: IMFL market size 2025 | Statista

https://www.moneycontrol.com/news/alcohol#:~:text=Alcoholic%20beverages%20are%20broadly
%20classified,2022%2C%20according%20to%20Euromonitor%20International.

https://www.statista.com/outlook/cmo/alcoholic-drinks/spirits/india

https://www.dw.com/en/why-alcohol-consumption-is-on-the-rise-in-india/a-63296901#:~:text=The
%20analysis%20by%20Lancet%20showed,it%20has%20increased%20by%202.88%25.
https://www.cnbctv18.com/retail/alcohol-consumption-trends-tequila-gin-single-malt-whiskey-in-
vogue-as-rum-and-vodka-take-a-back-seat-13040632.htm