India Vodka and Gin

India Vodka and Gin

The India vodka and gin market refers to the segment of the alcoholic beverage industry focused on the production, distribution, and consumption of vodka within the country. Vodka is a clear and colorless spirit primarily made from grains or potatoes and has gained immense popularity among Indian consumers. And gin is a distilled spirit flavored with botanicals, most notably juniper berries, and has experienced a renaissance in India. The market has witnessed significant growth in recent years, driven by changing lifestyle trends and increasing disposable income. Additionally, the growing influence of Western cultures and the emergence of a young and urban population with a penchant for trendy cocktails have further fueled the demand for vodka in India. Moreover, the influence of global trends, particularly the "gin craze," has transcended borders and piqued the curiosity of Indian consumers, leading to an increasing demand for premium and artisanal gin products.

India vodka and gin is expected to grow at a steady rate of around 7.2% owing to the Increasing urbanization and a growing middle-class population leading to higher disposable income and promoting higher demand for alcoholic beverages, particularly in urban centers. Moreover, alcohol consumption is rising in India because more people enter the legal drinking age, and the consumption of alcohol becomes more socially acceptable which will further drive the growth of the vodka and gin market in India. For instance, in 2020, according to a report by the NFHS-5, Around 1% of women aged 15 drink alcohol, compared to 19% of men in the same age group. This breaks up into 1.6% (rural) and 0.6% (urban) among women, and 19.9% and 16.5% respectively among men.

• Based on type, the market is segmented into vodka and gin. The vodka category is to witness higher CAGR during the forecast period owing to the rising urbanization and increasing disposable incomes of the Indian population have led to a shift in consumer preferences towards premium spirits. Moreover, the rising popularity of cocktail culture and the prevalence of mixology in bars and restaurants have further boosted the demand for vodka as a key ingredient in trendy cocktails.
• On the basis of the distribution channel, the market is bifurcated into offline distribution channel and online distribution channel. Among these, the offline distribution channel dominated the share of the market in 2022. This is mainly due to the regulatory environment, consumer behavior, trust and reliability, and social and cultural factors. In many states in India, the sale of alcohol online is either heavily regulated or not allowed at all. For example, in Maharashtra, online sales of alcohol are prohibited, while in Delhi, online sales are allowed but are subject to strict regulations. This has led to a greater reliance on offline distribution channels such as liquor shops and bars. Moreover, the offline distribution of alcohol is a significant source of revenue for the states. In the fiscal year 2020-21, the state of Maharashtra collected over 70,000 crore rupees in excise taxes on alcohol, according to government data.
• For a better understanding of the market adoption of the Indian vodka and gin industry, the market is analyzed based on its presence in the regions such as North India, East India, West India, and South India. South India is anticipated to grow at a substantial CAGR during the forecast period. This is mainly due to South India is being popular tourist destination which is contributing to the growth of the vodka and gin market in India. For instance, as per the National Family Health Survey-5 (2021), the average alcohol consumption of southern India is about 13% which is more than national average of 9.91%. Moreover, the increasing modernization of South Indian society, along with the increasing disposable income of people in the region and there has been a shift in consumer preferences towards premium and high-quality products, and this has led to an increase in demand for premium alcoholic beverages which is driving the demand for the vodka and gin market in India.
• Some of the major players operating in the market include Bombay Spirits Company LTD; Diageo plc; Nao Spirits & Beverages Pvt Ltd; Radico khaitan Limited; Bacardi Limited; Beam Suntory, Inc.; Allied Blenders and Distillers Private Limited; United Brewries; Carlsberg Breweries A/S; Anheuser-Busch InBev.