Alcoholic drinks in 2023: The big picture
In 2023, the alcoholic drinks industry in India maintained dynamic total volume growth, although the rate of increase slowed compared with 2021 and 2022, as sales had already exceeded the pre-pandemic level the previous year. In addition, a greater number of consumers turned to on-trade consumption in 2023.
2023 key trends
Therefore, India offers significant growth potential for beer, with per capita consumption at just 2.15 litres, which is far below the Asia Pacific average of 15.
Competitive landscape
Beer in India is dominated by Heineken, Carlsberg, and Anheuser-Busch InBev NV (AB InBev) in global brand owner terms, which together controlled over 85% of the category in total volume terms in 2023. Heineken, following its acquisition of UB Group, holds the largest share of sales, with over 50%.
Retailing developments
Large-format retailers have gained prominence in India to meet the increasing demand for premium products. Stores such as Mansionz and Tonique feature dedicated sections for different categories, tasting rooms, and luxurious shopping experiences.
On-trade vs off-trade split
The on-trade channel was hit hard by the COVID-19 pandemic in 2020, with sales of alcoholic drinks plummeting, although recovery started from 2021. Online food aggregators played a crucial role in the recovery of on-trade establishments by helping them sustain their operations during lockdowns through food sales on their platforms.
What next for alcoholic drinks?
India’s young population, low per capita alcohol consumption, and growing premiumisation trend will be key growth drivers for alcoholic drinks over the forecast period, with total volume sales expected to continue to rise. With a median age of 29.
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Overview:
Understand the latest market trends and future growth opportunities for the Alcoholic Drinks industry in India with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Beer
- Wine
- Spirits
- Cider and Perry
- RTDs
If you're in the Alcoholic Drinks industry in India, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty
The Alcoholic Drinks in India report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Alcoholic Drinks in India?
- Where is consumer demand for Alcoholic Drinks focussed?
- Which is being consumed more; beer, wine or spirits?
- Where is demand growing? Stagnating?
- How is the operating environment for alcoholic drinks changing?
- Which are the leading brands in India?
- How are products distributed in India?
- What are the key trends in new product development?
- Do consumers want value for money or added value?
- How will macroeconomic context and shifting cultural values shape future growth?
- How will COVID-19 and recession impact the alcoholic drinks industry?
- Where is future growth expected to be most dynamic?
Alcoholic Drinks in India
Alcoholic drinks in 2023: The big picture
2023 key trends
Competitive landscape
Retailing developments
On-trade vs off-trade split
What next for alcoholic drinks?
Legislation
Legal purchasing age and legal drinking age
Drink driving
Advertising
Smoking ban
Opening hours
On-trade establishments
Contraband/parallel trade
Duty free
Cross-border/private imports
Outlook
DISCLAIMER
Beer in India
KEY DATA FINDINGS
Beer witnesses a slowdown, following two years of exceptional growth
Heineken leads the oligopoly in beer in India
A challenging macroeconomic environment and the associated rising cost of living hinder the growth of smaller players in craft beer
Lack of differentiation in taxation between low ABV and high ABV categories, coupled with the inability to set prices, restricts the growth of beer
Premiumisation will remain a strategic priority for companies throughout the forecast period
Retail e-commerce remains underdeveloped and has scope for expansion
Lager price band methodology
Rtds in India
KEY DATA FINDINGS
Young demographic and convenience drive sales of RTDs in India
Bacardi-Martini retains its dominance, assisted by launch of new options
Inflation and taxation remain the biggest challenges for RTDs
Spirit-based RTDs likely to grow, but will witness increased competition from other types of RTDs
Spirits in India
KEY DATA FINDINGS
Spirits loses some of its growth momentum in 2023
Diageo and Pernod Ricard lead spirits, followed by a host of Indian companies
Foreign manufacturers adopt a more local approach to combat the success of Indian single malt whisky manufacturers
Companies will continue to struggle with their bottom line amidst inflationary pressures and their inability to set prices
Millennials will continue to drive sales of imported whiskies
India expected to lead the shift of whisky consumption to developing markets
Vodka, gin, other blended Scotch whisky, dark rum and white rum price band methodology
Wine in India
KEY DATA FINDINGS
Wine consumption in India is being driven by Millennials, and growing demand for premium products
Samant Soma Wines leads wine due to its extensive product range and strong focus on wine tourism
India is witnessing demand for imported wines from various countries
A low base and more women entering the workforce expected to drive growth, but inflation remains a significant obstacle
India likely to continue to see a rise in experiential stores during the forecast period
The following categories and subcategories are included:
Alcoholic Drinks
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- Ale
- Sorghum
- Weissbier/Weizen/Wheat Beer
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- Flavoured/Mixed Lager
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- Domestic Premium Lager
- Imported Premium Lager
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- Domestic Mid-Priced Lager
- Imported Mid-Priced Lager
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- Domestic Economy Lager
- Imported Economy Lager
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- Domestic Premium Lager
- Domestic Mid-Priced Lager
- Domestic Economy Lager
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- Imported Premium Lager
- Imported Mid-Priced Lager
- Imported Economy Lager
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- Low Alcohol Beer
- Non Alcoholic Beer
- Stout
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- Regular Cider/Perry
- Non Alcoholic Cider/Perry
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- Malt-based RTDs
- Spirit-based RTDs
- Wine-based RTDs
- Other RTDs
- Non Alcoholic RTDs
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- Brandy
- Cognac
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- Bitters
- Cream-based Liqueurs
- Other Liqueurs
- Non Alcoholic Spirits
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- Prestige Dark Rum
- Ultra Premium Dark Rum
- Super Premium Dark Rum
- Premium Dark Rum
- Standard Dark Rum
- Economy Dark Rum
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- Prestige White Rum
- Ultra Premium White Rum
- Super Premium White Rum
- Premium White Rum
- Standard White Rum
- Economy White Rum
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- Tequila (and Mezcal)
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- Bourbon/Other US Whiskey
- Canadian Whisky
- Irish Whiskey
- Japanese Whisky
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- Blended Malt Scotch Whisky
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- Prestige Other Blended Scotch Whisky
- Ultra Premium Other Blended Scotch Whisky
- Super Premium Other Blended Scotch Whisky
- Premium Other Blended Scotch Whisky
- Standard Other Blended Scotch Whisky
- Economy Other Blended Scotch Whisky
- Single Grain Scotch Whisky
- Single Malt Scotch Whisky
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- Other Whiskies
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- Prestige English Gin
- Ultra Premium English Gin
- Super Premium English Gin
- Premium English Gin
- Standard English Gin
- Economy English Gin
- Dutch Gin
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- Prestige Vodka
- Ultra Premium Vodka
- Super Premium Vodka
- Premium Vodka
- Standard Vodka
- Economy Vodka
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- Absinthe
- Ad-Mix Brandy
- Ad-Mix Gin
- Ad-Mix Rum
- Ad-Mix Vodka
- Ad-Mix Whisky
- Aguardente/Aguardiente
- Aguardiente De Caña
- Akvavit/Aquavit
- Aniseed-Flavoured Spirits
- Borovicka
- Boukha
- Brandy Type Distilled Spirits
- Cachaça
- Calvados
- Cane
- Chacha
- Charanda
- Chinese Herbal Spirits
- Chinese Spirits
- Cut Brandy
- Destilados De Agave
- Distilled Fruit Spirits
- Domestic Brandy
- Domestic Rum
- Doppelkorn
- Economy Chinese Spirits
- Flavoured Spirits
- Flavoured Vodka-based Drinks
- Fynbos gin/Local Gin
- Gin-flavoured spirits
- Goldbrand/Goldkrone
- Grappa
- Grappamiel
- Guaro
- Kirsch
- Komovica
- Korn
- Lambanog
- Limoncello
- Local White Spirits
- Lower Mid-Range Chinese Spirits
- Lozovaca
- Maesilju
- Mahia Rabi Amrane
- Mead
- Mixed Spirits
- Nalivka/Nalewka
- Nastoyka
- National Specialities
- Obstbrände
- Ouzo
- Pacharán
- Palinca/Pálinka
- Pear and Apple Distillates
- Pisco
- Premium Chinese Spirits
- Prune
- Punsch
- Rachiu/Rakija
- Rum-Flavoured Spirits
- Samane
- Sambuca
- Samsu
- Schnapps
- Shochu/Soju
- Singani
- Sljivovica/Slivovice
- Steinhäeger
- Strong African Spirits
- Super Premium Chinese Spirits
- Sura Khao
- Tequila Flavoured Spirits
- Travarica
- Tsipouro
- Upper Mid-Range Chinese Spirits
- Vieux
- Viina
- Vodka Type Distilled Spirits
- Other Distilled Beverages
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- Port
- Sherry
- Vermouth
- Other Fortified Wine
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- Apple Wine
- Bokbunjaju
- Cheongju
- Chinese Wine
- Economy Rice Wine
- Fortified Fruit Wine
- Fruit and Berry Wine
- Fruit and Herbal Wine
- Fruit and Honey based Wine
- Fruit Wine
- Lower Mid-Range Rice Wine
- Non-Grape Dessert Wine
- Premium Rice Wine
- Sake
- Takju
- Upper Mid-Range Rice Wine
- Yakju
- Yellow Wine
- Other Non-Grape Wine
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- Champagne
- Other Sparkling Wine
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- Still Red Wine
- Still Rosé Wine
- Still White Wine
- Non Alcoholic Wine
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Alcoholic Drinks
Alcoholic drinks is the aggregation of beer, wine, spirits, cider/perry and RTDs.
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This report originates from Passport, our Alcoholic Drinks research and analysis database.
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