India Alcoholic Beverages Market Overview, 2022-2028

India Alcoholic Beverages Market Overview, 2022-2028

Liquor is always popular among demographics and is here to stay to drive future growth in the Indian market. While those with money enjoy a couple of drinks to celebrate and relax, those with less money splurge their scanty savings on buying liquor to drown their sorrows in. Liquor shop owners have a lot of margins to make profits that enable them to expand their range and variety of liquor, or expand to set up more shops in different localities. A liquor shop is profitable at all times and is recession-proof. In fact, with more stress comes people’s dependence on alcohol, as it enables them to relax and bust their stress. There is always a demand for alcohol, but it decreases during the religious months of Ramzan and Navratri, as well as during other festivals.The government of India levies huge taxes on liquor and imposes hefty amounts of money to obtain a licence or permit to sell liquor, which is a very money-making way for the government. When the country's economy was dwindling and the states were running out of money in their coffers in the middle of the COVID-19 pandemic, they allowed liquor shops to open, as that was a sure-shot way to fill in the state coffers.

According to the research report, India Alcoholic Beverages Market Overview, 2027-28 published by Bonafide Research, states that the Indian alcoholic beverages market is expected to be nearly INR 6,00,000 crore by the end of the period 2027-28. There is stiff competition in the Indian liquor market as shops in the same locality compete with each other. To keep up the sales numbers and profits, the seller must have great offerings for their customers to stay ahead of the competition. The sales and service strategy must be regularly monitored and changed to stay ahead. The recent alcohol delivery bill passed by the government means adding home delivery of alcohol to the list of services offered. At certain times of the year when the market plunges, liquor sales do take a slight hit, but it is more of a speed-breaker and not a complete standstill. More variety would attract different types of customers. Because different alcoholic beverages have different profit margins, more liquor variety would ensure a good amount of profits.

The cost of a liquor licence in India ranges from INR 7,000 to 10,000 for a temporary license. For private properties and resorts, INR 13,000 and for restaurants and wine shops, INR 1,50,000 to INR 5,44,000 depending on the city. The sellers need to renew their licence every year depending on which type of city they fall under. Tier 1 cities receive INR 10 lakhs, Tier 2 cities receive INR 7.5 lakhs, Tier 3 cities receive INR 5 lakhs, and Tier 4 cities receive INR 2.5 lakhs per year.
Growth in the urban population coupled with increasing disposable income is projected to propel the market growth of alcohol. Moreover, the advent of variety in the flavour of alcohol coupled with the expanding product portfolio by the manufacturers is further projected to boost the growth of the alcohol market. Changes in demographics, coupled with the change in lifestyle, are another major factor expected to foster the market for alcohol. The legal drinking age in India varies from state to state. For instance, 18 years in Goa, Uttar Pradesh, and Karnataka, 21 in Tamil Nadu and Andhra Pradesh, and 25 in Maharashtra, Delhi, and Punjab. As such, the aforementioned statistics indicate that India is ideal for the high growth of the alcohol market. Strict government rules and regulations due to the rising number of accidental cases due to overdrinking alcohol are expected to hamper the market growth of alcohol. Consumers’ preferences are shifting towards quality alcohol, which also includes liquor with low alcohol content. Moreover, rising demand for premium and high-priced alcohol due to increasing purchasing power is further projected to propel the market's growth over the forecast period.

Considered in the Report:
• Geography: India
• Base Year: 2021-22
• Estimated Year: 2022-23
• Forecast Year: 2027-28

India by Region
• South India
• West India
• North India
• East India

By Segments covered in the report
• Whisky
• Brandy & Wine
• Beer
• Rum
• Vodka
• Gin
• Other Liquors

By Distribution Channel
• Retail
• Institutional
• CSD (Canteen Store Department)

By Demographic
• Rural
• Urban

The Approach of the Report:
Bonafide Research performed primary as well as secondary research for this study. Initially, a list of manufacturers and suppliers operating in the Sun Care Market of India were sourced through secondary sources. With the identified companies and consumers, primary research was carried out which included conducting online surveys, competitor analysis and exhaustive personal interviews - both face to face as well as telephonic basis, to extract maximum information from participants like industry executives/ distributors or consumers. Primary research gave us an idea of company revenues, export, pricing, geographical presence, channel partner model, USP etc. and also helped us to identify various small players who otherwise have less presence on the web.
Bonafide Research seeks secondary data from third-party sources such as published articles, company websites, magazine articles, associations, trade journals, annual reports, government official websites and other paid database sources. In addition, data is also mined from a host of reports in our repository, as well as a number of paid databases of Indian government. Using both primary and secondary information, Bonafide Research calculated the market size through a bottom-up approach, where manufacturers’ value sales data for different types of sun care products were recorded and subsequently forecasted for the future years.

Intended Audience
This report can be useful to Industry consultants, manufacturers, suppliers, associations & organizations related to alcohol beverages industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.