According to Associated Chamber of of Commerce and Industry in India (ASSOCHAM),India is one of the fastest growing alcohol markets in the world and largest consumer of whiskey which accounts for almost 80% of the entire liquor market. Due to India’s affinity for hard liquor, Indian whiskey market which currently stands around Rs 40,500 crore is expected to cross Rs 54,000 crore mark within next two years.
Indians love their whisky, vodka and rum but are yet to develop a taste for wine.
Spirits make up for 88% of what Indians regularly drink while beer boasts of a 10% share. Wine is only 2% of what Indians love to drink.
According to ASSOCHAM, the alcohol consumption in India will cross 19,000 million litres by 2015 from the current level of 6,700 million litres growing at a rate of 30% on year on yaer basis.
India’s alcoholic beverage market comprising beer, wine and spirits will reach over Rs 1.4 lakh crore mark in 2015 from current size of about Rs 50,700 crore.
But with the number of youngsters and income levels on the rise, popularity of beer made from malt is increasing and is expected to reach 2.4 billion litres by 2012.
Indian liquor market which is divided into various categories like – IMFL (Indian made foreign liquor), imported liquor, domestic liquor and country-made liquor, is brimming with growth. Of late, Indian consumers have developed fondness for imported liquor and the market is crowded with various foreign brands.
Awareness about health benefits associated with moderate drinking is another significant factor behind this upsurge as now more and more Indians are adopting a healthy lifestyle, highlights the study.
Urbanisation together with ever-changing social norms, increased alcohol availability, high intensity marketing and relaxation of overseas trade rules have equally contributed to increased alcohol consumption.
A significant but worrisome reason for increased liquor consumption is that boys and girls in their youth are resorting to drinking at a young age due to high disposable incomes, lack of parental supervision, changing society norms and peer pressure.
India ranks as one of largest alcoholic beverage market across the globe considering that almost 70 per cent of alcohol in south-east Asia is produced in India. Besides, India’s contribution in total alcohol beverage imports in the region is nearly 10 percent.
Kerala and Punjab are leading liquor consuming states in India. With Kerela alone accounting for 16 per cent and Punjab accounting for 14 percent of all the liquor consumed in India.
Also states like Andhra Pradesh, Haryana, Himachal Pradesh, Karnataka, Rajasthan, Tamil Nadu and West Bengal are leading liquor consuming states in that order accounting for 40 per cent of all the liquor consumed in India. Union Territories of Chandigarh and Pondicherry also record high consumption levels and together account for almost 6 per cent of all the liquor consumed across India.
Nearly 15 to 20 per cent of the liquor consumed annually is estimated to be counterfeit, causing tax loss to the state governments and brand reputation damage to the manufacturers.