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India’s alcohol industry is the third largest in the world with a value of $35 billion. The industry is divided into three categories: Indian Manufactured Foreign Liquor (IMFL), beer, and homemade liquor.
Whiskey dominates the IMFL category, and India has the largest whiskey industry in the world. India-based United Spirits Limited’s McDowell’s No. 1 is the most prominent whiskey.
Revenue in the Alcoholic Drinks market amounted to US$67,661m in 2018. The market is expected to grow annually by 7.9% (CAGR 2018-2021).
The market is created by the demand and supply of products. The millennial has changed the liquor industry’s demand and increased it to multiple folds.
The "India Whisky Market Outlook, 2023" report suggests the following points add to the market trends and development:
Change in consumer preferences to premium products:
The customer has become more aware and evolved with the quality of alcohol it consumes. The drinking habits of people have changed, which is why the demands are growing. Even companies are trying their best to take advantage of the demand through their supply.
Changing the packaging of products:
The alcohol industry is also doing its bit to keep the customers engaged and active by changing its packaging and adding different flavors as per customer’s choice. The liquor industry has changed the packaging to recyclable and reusable products to reduce packaging prices and easy for the customers to carry.
Change perception towards consumption of alcohol:
Now no celebration is complete without tossing glasses of alcohol, be it family gathering or professional parties. The perception towards the consumption of alcohol has changed and the millennial especially is too casual about the habit of consuming alcohol.
The report estimates that the share of households falling into the middle-income segment (household disposable income of USD10,000+) to account for 25% of households in 2022, up from 11% in 2018.
Increasing Stress in Life:
The continuous work pressure, imbalanced life has led to the stressful life of the millennial and this is taken as a reason why consumption of alcohol has increased and the demand is created in the market.
Increasing parties and the presence of Alcoholic products in them:
Reports state: 33% of the total population in India is made up of millennials (aged 20-39 years old) according to our 2018 projections, which will help boost beer consumption, as drinking increasingly becomes part of social interactions.
