After the economically debilitating pandemic, the Indian market for alcohol has witnessed a massive recovery. In 2020, the spirits business saw a decline of 20% with beer falling the hardest with 39%.
IWSR (International Wines and Spirits Record), a UK-based research agency, has produced data reflecting a potential rise. Their analysis predicts a 4.4% rise in the Indian spirits industry and 9.9% in beer in the upcoming five years.
According to the NFHS-5 (National Family Health Survey-5), 2019-21, alcohol consumption is higher among rural men and women than in their urban counterparts.
On the state level, Arunachal Pradesh has the highest proportion of drinking men (53%) and women (24%), followed by Sikkim and Telangana. It stands lowest in Kerala, Lakshadweep, and Jammu and Kashmir.
A 2018 study demonstrated that more than 29.3 Crore people drank alcohol in India. These people account for about 21% of the population. In terms of age, alcoholic beverages occupy people between 18 and 40 the most.
The alcohol industry has produced these statistics and has banked upon the young demographic, rapid urbanization, and the rising acclimatization to alcohol consumption in Indian society.
ICRIER (Indian Council for Research on International Economic Relations) has projected the market size of the Indian alcohol business to be 3.9 Crores which provides employment to over 15 lakh individuals. It is estimated that the number of consumers will rise to 38.6 Crore by 2030.
Alcohol companies claim that instead of an uptick in terms of quantity, a tendency has surfaced among Indians to opt for better quality, high-priced booze. Hina Nagarajan, director at United Spirits Limited (USL), acknowledged how premiumization is on the rise with revenge outing and continued growth on-trade after a short-lived decline.
“We encourage moderation and don’t want to drink volume. And what has particularly accelerated during Covid is the trend of people wanting to not necessarily buy a lot of volumes but buy better and more reputed and highly differentiated brands.“
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Kartik Mohindra, Chief Marketing Officer of Pernod Ricard India, also spoke about Indians’ gradual leaning towards expensive booze and the company’s plan to introduce international brands in the market.
Pernod Ricard owns an eclectic variety of local and international brands like Royal Stag, Chivas Regal, Ballantine’s, Blender’s Pride, The Glenlivet, and Absolut vodka, Jameson Irish Whiskey, and Money 47 Gin.
In an interview, he said, “Consumers are concerned, and rightfully so, about drinking and driving. There are times when they don’t want to go for a high-alcohol product, but want to savor something in that zone to go through a particular evening.”
The launch of Unvined, a non-alcoholic wine with less than 0.5% alcohol, by Australian wine brand Jacob’s Creek has catered to this new tendency among alcohol enthusiasts.
The post-lockdown period is proving to be a boon for the booze market. Jason Holway, an analyst at IWSR, credited post-Covid outings and hot weather for the comeback of beer, “After two years in which the key April-June season has been impaired by lockdowns, beer sales are bouncing back swiftly as bars and restaurants revive and consumers seek refreshment in the record-high temperatures.”
Among the three most popular drinks in India, whiskey may break the record of 2019 by the end of 2022, while brandy and rum may resume their previous highs by 2026. Other spirits like vodka and white rum have registered a volume growth of 17.5% in 2021, and gin has added 50% growth by getting pushed by a soaring interest in Indian craft gin.
Disclaimer: This article is fact-checked
Sources: The Economic Times, The Indian Express, Live Mint
Image sources: Google Images
Feature Image designed by Saudamini Seth
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