The Liquor industry in India is one of the biggest alcohol industries across the globe stand behind the two major countries such as China and Russia.
The fast-growing demand for alcoholic beverages in India is majorly attributed to the huge population and young base and the consumption of alcohol by everyone & rising disposable income is strengthening the industry growth & Profits. With the vast population in India, it is one of the largest consumer markets.
Also demographically in India around 50% of its population below the age of 25 and around 65% below the age of 35. The major consumption of alcohol by volume is by the people aged between 18 and 40.
The demographic stats are expected to fuel the growth of the market over the forecast period at a rapid pace. Even the rapid urbanization of tier-II cities is further adding strength to the market growth.
Analyst forecasts that the Indian liquor market to grow at a CAGR of 7.4% during the period 2017-2030. The market is also anticipated to reach USD 39.7 billion by the end, As alcohol consumption is growing in urban areas.
Indian Made Foreign Liquor is accounted for the largest market share of 40% in 2016. Whereas the foreign liquor bottled in origin or imported alcohol shows fast growth in terms of its consumption in the last few years and which is likely to grow with a CAGR of 25% at a faster pace in the forecast period.
In India, the Southern part is accounted for the biggest market with a market share of more than 45% in terms of alcohol consumption, with a significant rise in urban areas and female alcohol consumers in that region.
North India and Western India are expected to be the new fast-growing markets with the growing number of urban cities.
According to the report, the major driver in the Indian market is the fastest-growing consumption of alcohol owing to fast urbanization in the country.
A huge population migrating towards developed cities and exposed to a variety of alcoholic beverages, including IMFL, and contributing to the market growth.
Although India is a young country, more than 55% of Indians are in the age group of 18-45. This is the target age group for the industry as potential customers.
One challenge in the Indian Liquor market is liquor licensing and sourcing.
For starting a new business and expansion, liquor licensing and sourcing is emerged as the major growth barrier for the industry, as it is the necessity to obtain mandatory licenses and regulation which is related to hours of operation and minimum age of consumption, which is different from state to state.
After the impact of Covid-19, the sales levels are showing sharp growth in this sector the sales reach the previous levels before Covid-19.
In the same manner Unlocking in the country will lead to a sharp increase in sales. Imposing extra taxes also not affected the consumption in the country.
This industry is an untouched segment in the country and is expected to grow at a faster pace. As the competition is very less with limited market players.
Whereas the consumption is increasing day by day. Even at the time of lockdown, the companies manufacture alcohol-based hand sanitizers which were in demand.