Alcoholic Beverages Market Outlook – Social Acceptance and Changing Lifestyle Driving Growth

MUMBAI, India - Nov. 8, 2017 - PRLog -- Global market intelligence firm, Netscribes, Inc. released its latest report on the 'Alcoholic Beverages Market in India 2017 (https://www.researchonindia.com/alcoholic-beverages-market-in-india-2017.html)'. Changing lifestyle and increased spending on alcoholic beverages has attracted customers to spend more on discretionary items and high priced alcohols which is resulting in an increase in the demand for alcoholic beverages.

India is the third-largest and fastest-growing liquor market in the world. Alcoholic beverages is considered a sunrise industry owing to its high-growth potential and increasing social acceptance. According to Netscribes research, the alcoholic beverages market in India is expected to grow at a CAGR of around 7.72% over a 10 year period to reach a value of INR 5.3 trillion in FY 2026.

An average Indian male drinker consumes three times more alcohol than an average female drinker each year. Region wise, south Indian states constitute the highest alcohol consuming region in the country.

There are various types of alcoholic beverages available in India, but beer is the fastest-growing segment in the country. It is expected to grow at a CAGR of 7.5% between FY 2017 and FY 2021.

Key growth factors

Growing urbanization has introduced a larger consumer group, mainly young men and women to alcoholic beverages and has resulted in more consumers willing to try new products.

Increased consumption of liquor in rural areas is another major reason for the growth in the market. Furthermore, the easy availability and accessibility of alcohol in rural and urban areas is an important factor in determining the growth of the alcoholic beverages market in India.

Factors such as rise in income and increasing social acceptance are expected to support the growth of alcoholic beverages market in India.

Threats and key players

Although alcoholic beverages have been kept out of the purview of the Goods and Services Tax (GST), it may impact the sector negatively. The input materials, at present, attract excise duty, sales tax, and VAT at 12 percent to 15 percent, whereas under GST, this is likely to be at 18 percent. So, there is a clear increase in tax on most input materials by 3 percent to 6 percent.

Additionally, the ban on alcohol in some states in India, such as Bihar, Kerala, and Gujarat, has adversely affected the sales of alcoholic beverages.

Some of the major players in the alcohol beverage market are Allied Blenders and Distillers Pvt. Ltd., Carlsberg India Pvt. Ltd., John Distilleries Ltd., Mohan Meakin Ltd. and Pernod Ricard India Pvt. Ltd.

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