Alcohols are the intoxicating beverage consisting of spirits, wine and beer. It is defined by the alcohol content and the major raw material used in it. For instance, spirits are mainly made by fermenting grains and sugar, whereas wine is made by fermenting fruits/berries. Indian alcohol market has been flourishing since 2001 and registered growth between 7-12% till 2011 when the growth finally declined due to heavy import taxes, state government taxes, excise duty and political instability in election season. The year 2013 was a great fall in Indian alcohol market when the spirits volume actually declined by 2-3% in India. Alcohol industry is a part of huge US$ 12 billion beverage industry of India excluding milk and milk products.
Indian alcohol market is dominated by whiskey which falls under spirit category. However, the wine market is expected to show highest growth in the forecast period. The Indian alcohol market is broadly segmented as spirits, beer and wine. Spirits are further sub-segmented into whiskey, rum/brandy, vodka, gin and others. The market is projected to register a flat growth in the forecast period.
Consumers are largely inclined towards quality alcohol due to increasing disposable income and better standard of living. Other drivers include greater inclination towards social drinking as well as women indulging into alcohol consumption. As India has huge youth population, the demand of alcohol would remain high in the coming years. The market saw a boom in Vodka sales in past decade as Vodka was positioned as the alcohol for women. Youth largely prefer beer and the salaried youth are inclined toward whiskey and rum. In beer segment, more than 85% of the market is dominated by strong beer rather than mild.
There exists quite a few restraints in the market such as high taxes, stringent government regulations on manufacturing and selling liquor,...