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Beer, Whisky and Rum Production

Tuesday, January 29, 2019

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Beer, Whisky and Rum Production. Start an Alcoholic Beverages Manufacturing Business

Beer is an alcoholic beverage prepared by saccharification and fermentation of grain. It is one of the most extensively consumed alcoholic beverage worldwide, after tea and coffee.

India is one of the biggest manufacturer of Beer in the world. Beer has become a one of the most popular alcoholic beverages in the country only over the past two decades. At present there are more than 60 beer brands available in the India alcohol beverage market. The majority of beer’s market growth is driven by young consumers and the consumers who consider beer a trendy drink, as compared with other traditional spirits. There is also a significant demand for foreign beer in the urban markets. The maximum levels of beer consumption in India are observed in the southern states. The healthy growth rate for the beer industry is an indication of the huge potential of opportunities open for breweries and beer brands marketing and/or manufacturers in India. Most of the major distilleries and breweries around the world have now created a base in India, either in the form of manufacturing unit or through distributors and joint ventures.

Whisky

Whisky (or whiskey) is a distilled spirit made from fermented grain and typically matured in wooden containers for some period of time.

Rum

Rum is one of the most popular liquors and it is used to create many of favorite cocktails, including the daiquiri and mojito. The sweet taste of rum makes it a versatile mixer and it is essential for any well-stocked bar. It can be used in anything from the great tropical drinks of the tiki scene to the warm drinks that keep us toasty all winter long.

 

Market Outlook

Beer Market

India Beer Market is projected to grow at a CAGR over 7.6% during 2018-2024. Increasing disposable income, urbanization, growing youth population as well as rising acceptance of social drinking have buoyed the growth of beer market in India. The country ranks among one of the largest alcohol markets across the globe.

Indian consumers are increasingly opting for beer which has a smooth and light taste, finding it easy to drink when socializing with friends. Light tasting beers are also becoming popular among those drinking alcohol for the first time.

Indians are becoming increasingly health-conscious, paying more attention to the nutritional value and calorie content of the foods and drinks they consume, with many being keen to try new alcoholic drinks which are seen as less harmful to health amidst the rising prevalence of conditions such as obesity, high blood pressure and diabetes. With many Indians consuming beer on a regular basis, healthier variants are proving very appealing.

Growing youth segment and working women population, rising incomes and rising purchasing power, higher brand consciousness, changing consumer preference, growing urbanization and Increase in number of upper middle class are the biggest drivers in the growth of Beer industry of India. Also, increased stress, change of lifestyle, availability of products and product diversification are also helping Beer sector to grow in India.

The Global Beer Market was valued at $593,024 million in 2017, and is projected to reach $685,354 million by 2025, growing at a CAGR of 1.8% from 2019 to 2025. The origin of beer dates to the early neolithic period, and is one of the oldest and the most consumed alcoholic beverages in the world.

The consumption of beer has augmented in the recent years due to rise in disposable income and increase in consumer preferences for beer over other alcoholic beverages. In addition, surge in female drinkers and unprecedented rise in youth population fuel the growth of the beer market.

Changing lifestyle, increasing consumption rate of alcoholic drinks, rapid urbanization, high disposable income, and popularity of beer among the young population are a few factors driving the global beer market. However, there are a few restraints that are slowing the pace of the industry, such as heavy taxation and legal regulations, health issues stemming from beer consumption, and availability of beer substitutes. Innovative products, with flavor innovation, growing popularity of craft beer, and growing demand for imported beer are expected to provide future growth opportunities for the market.

The increasing promotional activities along with strong marketing strategies is also expected to augment the growth of the global beer market. Rise in the number of population consuming beer and social recognition of beer being considered as a drink are some of the major growth drivers of the global beer market.

Some of the key players operating in the global beer market include Asia Pacific Breweries, Grupo Modelo, Heineken N.V., Molson Coors Brewing Company, Yanjing Brewery, Tsingtao Brewery Company Limited, Carlsberg Breweries A/S, Sapporo Breweries, Anheuser-Busch Companies Inc., Asahi Breweries, SABMiller, Kirin Brewery Company Limited, and Scottish & Newcastle.

Whisky

The global whisky market is expected to reach USD 7.40 billion by 2023, witnessing a CAGR of 5.3% during 2018-2023 (forecast period). Whiskey is considered as an affordable luxury item, leading many whiskey manufacturing companies to launch more premium and super premium products in the market. As a product innovation, the brewing industry is launching an organic whiskey without any artificial colors.

The global whiskey market is driven by the changing lifestyles, consumption habits of whiskey, high disposable income, growing affordability of whiskey, and increasing demand for premium whisky. However, there are a few restraints slowing down the pace of the industry, such as heavy taxation, legal regulations by the governments, health issues related to whiskey consumption and increasing number of consumers preferring alternatives such as wine and beer. As per the whiskey industry, there are some good opportunities in the market, such as innovative organic whiskey products, and an opportunity to penetrate the different geographies and demography.

The global whiskey market can be segmented by product, quality, and geography. By product types, whiskey can be classified into malt, wheat, rye, corn, blended, and others. Out of all these sub-categories, blended whiskey has 79% of the market share. By quality of whiskey products, the market can be divided into premium whiskey, high-end premium whiskey, and super premium whiskey. Premium whiskey is in demand and has the largest share of the whiskey market by quality.

The global whisky market is being driven by premiumization which is resulting in both volume and value growth. The rising middle-class consumer demography from emerging markets is also playing a major role in increasing the demand in the whisky industry sphere.

Some of the leading manufacturers and suppliers whiskey market are Affymetrix, Inc, Agilent Technologies, Inc, Bio-Rad Laboratories, Inc, Bruker Corporation, Clontech, Danaher Corporation, GE Healthcare, Luminex Corporation, Merck KGaA, New England Biolabs, Perkinelmer, Inc, Qiagen, Thermo Fisher Scientific, Inc. and Waters Corporation.

Rum

A key factor driving the growth of the market is new product launches. Product development and extension in product offerings are popular strategies that players adopt to increase the demand for alcoholic beverages such as rum. Over the past few years, the global rum market has witnessed a rise in the number of product launches.

The rum market is segmented on the basis of nature, rum type, proof type, distribution channel and region. On the basis of nature, the global rum market is segmented into organic and conventional. The conventional segment is expected to account for a significant revenue share in the global rum market in terms of both value and volume owing to limited points of differentiation between conventional and organic rum, in addition to organic certified rum being available at a significant premium.

However, the organic segment is expected to grow at a robust CAGR in the near future in the global rum market. On the basis of rum type, the global rum market is segmented into white rum, golden rum, dark rum, and spiced rum. Among all the different types of rum, white followed by golden rum is expected to dominate the global rum market in the near future owing to increasing number of consumers across various regions demanding such products.

Increasing per capita spending on alcoholic beverages in developing region supported by strong economic growth is expected to drive the global rum market over the forecast period. Traditionally alcoholic drinks were consumed largely by men, however, today the popularity of alcoholic drinks among women has also increased to a greater extent thus contributing towards the growing market for rum in the near future.

The global rum market has witnessed impressive growth over the last couple of years driven by a number of favorable factors. Growing urban population coupled with rising disposable incomes in emerging economies is leading individuals to explore new forms of entertainment such as night parties and spending time at bars, pubs, and lounges. Further, young adults with spending power, social media influence, and easy access to alcoholic drinks are other prominent factors driving sales of alcoholic beverages. In urban areas, high pressure jobs and the perception that consumption of alcohol is relaxing to the mind is leading to the increased consumption of rum.

By distribution channel, the global rum market is segmented into hypermarket/supermarkets and liquor shops. The liquor shops segment followed by hypermarket/supermarket segment is expected to account for significant market share in the global rum market in the near future.

 

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