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Alcohol Market

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Indian <strong>Alcohol</strong><br />

<strong>Market</strong><br />

Future <strong>Market</strong> Insights<br />

Share, Trends, Analysis,<br />

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Opportunities,<br />

Segmentation and<br />

Forecast,<br />

2014<br />

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Report Description<br />

<strong>Alcohol</strong>s are the intoxicating beverage consisting of spirits, wine and beer. It is defined by<br />

the alcohol content and the major raw material used in it. For instance, spirits are mainly<br />

made by fermenting grains and sugar, whereas wine is made by fermenting fruits/berries.<br />

Indian alcohol market has been flourishing since 2001 and registered growth between 7-<br />

12% till 2011 when the growth finally declined due to heavy import taxes, state<br />

government taxes, excise duty and political instability in election season. The year 2013<br />

was a great fall in Indian alcohol market when the spirits volume actually declined by 2-3%<br />

in India. <strong>Alcohol</strong> industry is a part of huge US$ 12 billion beverage industry of India<br />

excluding milk and milk products.<br />

Indian alcohol market is dominated by whiskey which falls under spirit category. However,<br />

the wine market is expected to show highest growth in the forecast period. The Indian<br />

alcohol market is broadly segmented as spirits, beer and wine. Spirits are further subsegmented<br />

into whiskey, rum/brandy, vodka, gin and others. The market is projected to<br />

register a flat growth in the forecast period.<br />

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Consumers are largely inclined towards quality alcohol due to increasing disposable<br />

income and better standard of living. Other drivers include greater inclination towards<br />

social drinking as well as women indulging into alcohol consumption. As India has huge<br />

youth population, the demand of alcohol would remain high in the coming years. The<br />

market saw a boom in Vodka sales in past decade as Vodka was positioned as the alcohol


Report Description<br />

for women. Youth largely prefer beer and the salaried youth are inclined toward whiskey<br />

and rum. In beer segment, more than 85% of the market is dominated by strong beer<br />

rather than mild.<br />

There exists quite a few restraints in the market such as high taxes, stringent government<br />

regulations on manufacturing and selling liquor, and ban on advertisements among<br />

others. <strong>Alcohol</strong> consumption is also subjected to the overall economy’s growth in terms of<br />

gross net income per capita and household expenditure. Thus, development in the<br />

economy would give a thrustto the alcohol market further but in a less pronounced<br />

manner.<br />

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One of the most notable trend is the demand of premium liquor among the consumers.<br />

The growth of premium segment would surpass the overall growth of alcohol market due<br />

to greater exposure towards foreign brands. India has seen a burst of high net worth<br />

individuals in past two decades and the list is ever increasing, which would fuel the<br />

growth of market in premium segment. In addition to travel retail theatres and duty free<br />

retailing would further boost the growth of premium alcohol in the market. Companies<br />

are launching exclusive new brands and products at premium prices to increase their<br />

margins and capture the upper class consumers. In September 2014, SABMiller, which<br />

also happen to be the second largest player in beer segment (after Kingfisher) launched<br />

its premium brand “Miller Ace” in India to compete with brands such as Carlsberg and<br />

Anheuser-Busch InBev.


Report Description<br />

Many international brands such as Diageo plc, PernodRicard, and The Carlsberg Group<br />

already forayed into the market with their million-dollar brands. The market is also<br />

moving towards consolidation with large number of acquisitions and joint ventures. One<br />

of the biggest mergers in recent past is that of London based Diageo plc and Indian firm<br />

United Spirits Limited, (USL). Diageo acquired 54.78 % share in USL by shelling whopping<br />

US$ 3 billion by mid-2014. USL is the dominant player in Indian alcohol market<br />

commanding majority of market share.<br />

Browse Full Report@ http://www.futuremarketinsights.com/reports/indian-alcoholmarket<br />

Some of the major players in Indian <strong>Alcohol</strong> <strong>Market</strong> are United Spirits Limited,<br />

RadicoKhaitan, Jagatjit Industries, Globus Spirits, Allied Blenders and Distillers Pvt. Ltd.,<br />

Sula Vineyards, SABMiller India Ltd. and John Distilleries Pvt Ltd among others.


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