The Indian liquor market, which is divided into various categories like IMFL (Indian-made foreign liquor), imported liquor, beer and country-made liquor, is brimming with growth. With favorable demographics, rising disposable income levels and greater acceptance of alcoholic beverages in social circles, the alcoholic beverages market in India is estimated to cross the $39 billion (over Rs 1, 75,950 crore) mark by 2014. According to a study by the firm, the sector grew at a compound annual growth rate of 12 per cent between 2004 and 2009, with the industry turnover touching $21.7 billion (over Rs 97,910 crore) in 2009.

The alcohol industry is the commercial industry involved in the manufacturing, distribution, and sale of alcoholic beverages. The alcoholic beverage industry includes producers, wholesalers and distributors, point-of-sale operators (whether licensed or not) and hospitality providers such as hotels or cafés that serve alcohol.  The outlook for the Indian alcoholic beverages continues to remain positive. In addition, changing consumer preference towards premium varieties of IMFL is likely to result in sales-mix gradually improve in favor of premium brands.

The Indian market for alcohol — mostly spirits and beer, as well as wine — totaled $14 billion last year, and was one of the fastest-growing alcohol markets in the world.

Over the next five years, the Indian market for alcohol is projected to grow at 10% a year — more than in China, the U.S. and Europe combined.  Strong economic growth and rising incomes spurred liquor demand for a large part of the 2000s, with distillers enjoying volume growth of over 10% every year.

Alcoholic beverages include beer, cider, ale, wine (including sparkling, barley, and rice wine) and spirits such as rum, whiskey, brandy and vodka. Almost 40% of the world’s alcoholic beverage consumption involves branded drinks that are usually large companies operating at an international level and investing heavily in marketing to promote image and encourage consumer loyalty. The global cider market is expected to exceed $2.5 billion by 2015. Growth is being driven by demand for organic products and drinks with low alcohol content.  

MAJOR PLAYERS

Mcdowell & Co.

Shaw Wallace

Reckit Khaitan

Mohan Breweries & Distilleries

Herbertsons

Jagajit Inds.,

Southern Agriframe Inds

Mohan Meakins

GM Breweries

Balaji Distilleries

Shaw Wallace & Co.,

Shri Shadi Lal Enterprises

Maharashtra Distilleries

Balaji Industrial

MARKET GROWTH RATES

1990-91-1996-97                           5.6%

1996-97-2001-02                         15.1%

2001-02-2006-07                           7.2%

2006-07-2011-12                         12.5%

2011-12-2019-20                           9.8%

Sensitivity Coefficient                    5.8%