Indian Liquor Market Research Report By Liquor Type (Whisky, Rum, Vodka, Gin, Tequila, Brandy, Beer, Wine), By Price Range (Economy, Mid-priced, Premium, Super Premium), By Distribution Channel (On-premise, Off-premise, E-commerce), By Packaging Type (Bottles, Cans, Boxes) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032

Global Indian Liquor Market Overview

Indian Liquor Market Size was estimated at 67.12 (USD Billion) in 2022. The Indian Liquor Market Industry is expected to grow from 71.12(USD Billion) in 2023 to 119.9 (USD Billion) by 2032. The Indian Liquor Market CAGR (growth rate) is expected to be around 5.97% during the forecast period (2024 - 2032).

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Key Indian Liquor Market Trends Highlighted

The Indian liquor market is anticipated to continue its steady growth in the coming years, driven by factors such as rising disposable incomes, changing lifestyles, and favorable government policies. The market is evolving towards premiumization, with consumers increasingly opting for high-quality and branded products. Craft beer and flavored spirits are gaining traction, catering to the diverse tastes of discerning consumers. The increasing urbanization and modern trade channels are also contributing to the growth of the market. Moreover, the government's initiatives to rationalize liquor taxes and promote responsible consumption are expected to positively impact the industry's growth trajectory.

Indian Liquor Market Drivers

Increasing Disposable Income

The revolution of the Indian middle class is having a profound impact, with disposable income moving at an increasing pace. A growing middle class has, in turn, increased the consumption of premium and luxury liquor. The increasing number of working women is yet another factor in the increase of the liquor market in India. Because they have more disposable income, their propensity to consume alcohol also increases with them. It is estimated that the average disposable income of Indians will rise to up to $2,500 by the year 2025 surely adding to the demand for liquor in India.

Projections show that the Indian liquor market is expected to increase at a compound annual growth rate (CAGR) of 5.97 percent between the period of 2024 to 2032. The increase is attributed to the increase in the average income, the lifestyles of people and the increase in population density. The dominant portion of the liquor market of the Indian subcontinent consists of beer which is approximately 60% and is expected to sustain in the coming years as well. However, it is projected that the liquor industry growth rates and trends have now shifted to greater heights, with the rate of increase for the spirits segment projected at 30% market shares by 2032, with the wine segment currently at a much lower share but the growth rates are significantly higher.

,Changing Lifestyle

The Indian lifestyle is changing rapidly, and this is leading to a change in drinking habits. Indians are becoming more open to trying new and different types of alcohol, and they are also drinking more frequently. This is especially true in urban areas, where there is a growing culture of socializing and partying. The changing lifestyle of the Indian population is a major driver of the growth of the liquor market in the country.

Urbanization

India is rapidly urbanizing, and this is leading to a change in the way people live and work. Urban areas have a higher concentration of young people, who are more likely to drink alcohol. Additionally, urban areas have a more developed nightlife scene, which is also contributing to the growth of the liquor market. The Indian Liquor Market Industry is expected to grow at a CAGR of 5.97% from 2024 to 2032. The growth of the market is attributed to factors such as increasing disposable income, changing lifestyles, and urbanization.

Indian Liquor Market Segment Insights

Indian Liquor Market Liquor Type Insights   

The market of Indian liquor is segmented into different categories according to liquors types. They are as follows whisky, rum, vodka, gin, tequila, brandy, beer, and wine. Each of the following segments takes considerable shares of the market and contributes to its development. Whisky. This is the most popular and widely demanded liquor type in India, which is significantly purchased in various parts of the world. Indian whisky is notable for its unique taste and flavor. It is customary to produce the liquor using tonics, additional substances, and ingredients in India.The segment is forecasted to grow in the following years, as it is increasingly demanded both by the Indian population and abroad. Rum. Rum takes the second position among the Indian population. The liquor is widely known and demanded to be consumed neat, on rocks, and in mixes. It should be noted that there is a wide range of rum of different brands and tastes in order to comply with its multifaceted consumption. Rum is increasingly demanded to be used as a base of the cocktails, providing a framework for the development of the segment in the future.Vodka. Vodka is a liquor produced by multiple distillation of natural ingredients. The colorless product is highly demanded and gaining new positions in the Indian market among the population and customers. One of the rationales refers to the fact that there is a growing demand for premium and flavored vodkas to be consumed neat, on the rocks, and used as a cocktail base. Another one refers to the increasing number of nightclubs and bars buying vodka, with its rates rapidly growing. Gin. There is a relatively small number of gin customers, as the liquor type does not coincide with the Indian culture of life.However, it has gained considerable positions during the past few years due to the growing awareness of gin cocktails and their consumption. As a result, an increasing number of premium and craft gin are being sold on the Indian market.  Tequila Tequila is a distilled spirit that is produced from the fermented juice of the blue agave plant. The segment is still small in India, but with more and more people in the country trying out new kinds of liquor and seeking exotic drinking experiences, the segment is likely to grow. The segment is also likely to grow with the growing popularity of Mexican cuisine and its cocktails.Brandy Brandy is a distilled liquor produced from fermented fruit juice, mostly from grapes. Most of the brandy consumed is imported, but there are a few local brands as well. The growth of this segment is likely to be driven by the growing demand for premium and old brandy.   Beer Beer is one of the most widely drunk types of alcoholic beverage in the country and, as such, constitutes a very sizable share of the total liquor market. While the segment is dominated by a few big players in the domestic market, the segment is also witnessing the emergence of a number of craft breweries in the country.The growth of the beer segment is likely to be driven by the demand for premium and flavored beer products.   Wine Wine is a fermented beverage made of grapes or other fruits. While the wine segment is smaller in size when compared to the other types of liquor discussed above, the wine-drinking audience in the country is growing as more and more people in the country seek new and sophisticated experiences. The growth of the wine segment is also likely to be driven by the growing number of domestically produced and imported wines.

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Indian Liquor Market Price Range Insights   

The price range segment is an important determinant of the competitive landscape of the Indian Liquor Market. Economy brands are the key stakeholders in the market, with the share of the economy segment standing at around 45% in 2023. The mid-priced brands were slightly behind, taking up a share of about 40%. The premium and super-premium brands constitute the remaining market share, with their influence expected to drive market growth. Each price range caters to the needs and demands of the relevant customers. The economy segment targets consumers willing to buy alcohol at a low price.The mid-priced segment, on the other hand, targets customers willing to spend slightly more for enhanced product quality. The premium and super-premium segments represent the upper end of the market. These brands attract consumers who identify exclusivity with quality, looking to purchase expensive and luxurious wine or spirits. There is a rising interest in premium spirits and fine wines, which is expected to drive market growth. The Indian Liquor Market is highly fragmented. Some of the key firms become market leaders by forming strategic alliances or carrying out acquisitions and mergers.

Indian Liquor Market Distribution Channel Insights   

The distribution channel segment plays a crucial role in the Indian Liquor Market. The market is segmented into three primary distribution channels on-premise, off-premise, and e-commerce. On-premise refers to the sale of liquor for immediate consumption at bars, restaurants, and other licensed establishments. This channel accounted for the largest share of the Indian Liquor Market revenue in 2023, owing to the preference for socializing and dining out in India. The on-premise segment is expected to continue its dominance, driven by the growing popularity of premium and craft liquors.Off-premise refers to the sale of liquor for consumption off the premises, typically through retail stores, supermarkets, and wholesalers. This channel is gaining traction due to the convenience and wider selection it offers. The off-premise segment is projected to grow at a significant rate, supported by the increasing availability of online and home delivery services. E-commerce is a relatively new distribution channel for liquor in India, but it is rapidly gaining popularity. Online platforms offer a vast selection of liquors, competitive pricing, and doorstep delivery.The e-commerce segment is expected to witness exponential growth in the coming years, driven by the growing penetration of smartphones and the convenience it provides.

Indian Liquor Market Packaging Type Insights   

The packaging type segment plays a crucial role in the Indian Liquor Market. In 2023, bottles held the largest market share, accounting for nearly 78.2% of the overall revenue. The widespread availability of bottles in various shapes, sizes, and materials, coupled with their ability to preserve the taste and aroma of liquor, makes them a preferred choice for both manufacturers and consumers. Cans, on the other hand, are gaining popularity due to their lightweight, portability, and convenience. They are expected to witness a steady growth rate during the forecast period, capturing a significant share of the market by 2032.Boxes, while having a smaller market share compared to bottles and cans, offer cost-effective packaging solutions and are often used for bulk purchases or promotional purposes. The growth of the packaging type segment will be influenced by factors such as changing consumer preferences, technological advancements, and regulatory frameworks.

Indian Liquor Market Regional Insights   

The regional segmentation of the Indian Liquor Market offers insights into the market's performance across key geographic regions. North America, Europe, APAC, South America, and MEA are the dominant regions in the Indian Liquor Market. In 2023, APAC held the largest market share, accounting for approximately 37.8% of the revenue. The region's high population density and growing disposable income have fueled the demand for Indian liquor. Europe is projected to witness steady growth, primarily driven by countries such as the UK and Germany.North America is another significant region, with the US being a major contributor to the market growth. South America and MEA are expected to exhibit moderate growth, owing to the increasing popularity of Indian liquor in these regions.

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Indian Liquor Market Key Players And Competitive Insights

Major players in the Indian Liquor Market industry are engaged in fierce competition to gain market share and increase their profitability. Leading Indian Liquor Market players are continuously investing in new product development and marketing campaigns to attract new customers and retain existing ones. The Indian Liquor Market is highly fragmented, with a large number of regional and local players. However, there are a few major players that dominate the market. These include United Spirits Limited, Pernod Ricard, Diageo, and Radico Khaitan.United Spirits Limited is the largest player in the Indian Liquor Market, with a market share of over 50%. The company produces a wide range of alcoholic beverages, including whiskey, vodka, rum, and gin. United Spirits Limited has a strong distribution network and a large portfolio of brands. The company has been focusing on expanding its presence in the international market. Pernod Ricard is the second largest player in the Indian Liquor Market with a market share of around 20%. The company produces a wide range of alcoholic beverages, including whiskey, vodka, rum, and gin. Pernod Ricard has a strong presence in the international market and has been focusing on expanding its presence in India.Diageo is the third largest player in the Indian Liquor Market with a market share of around 15%. The company produces a wide range of alcoholic beverages, including whiskey, vodka, rum, and gin. Diageo has a strong presence in the international market and has been focusing on expanding its presence in India. Radico Khaitan is the fourth largest player in the Indian Liquor Market with a market share of around 10%. The company produces a wide range of alcoholic beverages, including whiskey, vodka, rum, and gin. Radico Khaitan has a strong presence in the Indian market and has been focusing on expanding its presence in the international market.The Indian Liquor Market is expected to grow at a CAGR of around 5% over the next five years. The growth of the market is expected to be driven by increasing disposable income, changing lifestyles, and growing urbanization. The market is also expected to benefit from the government's focus on promoting tourism and hospitality.

Key Companies in the Indian Liquor Market Include

• Dudu Beverages


• Globus


• Baronessa Distilleries Limited


• Diageo India (United Spirits Limited)


• Tilaknagar Industries Limited


• GM Breweries


• Bagpiper


• Allied Blenders Distillers


• United Breweries Limited (UBL)


• V2 Spirits


• Asahi India Glass Limited


• John Distilleries


• Mohan Meakins Limited


• Radico Khaitan


• Pernod Ricard India

Indian Liquor Market Industry Developments

The Indian liquor market is projected to grow from USD 71.12 billion in 2023 to USD 119.9 billion by 2032, exhibiting a CAGR of 5.97% during the forecast period. Rising disposable income, increasing urbanization, and changing lifestyle are key factors driving market growth. The increasing popularity of craft beer and premium spirits is also contributing to the market expansion. However, stringent government regulations and health concerns related to alcohol consumption pose challenges to market growth. Recent news developments include the launch of new products by major players such as Diageo and Pernod Ricard, as well as the growing popularity of online alcohol retail. The market is expected to witness significant growth in the coming years, driven by the increasing demand for premium and imported alcoholic beverages.

Indian Liquor Market Segmentation Insights

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  Indian Liquor Market Liquor Type Outlook
  
  
  
  • Whisky
  
  
  • Rum
  
  
  • Vodka
  
  
  • Gin
  
  
  • Tequila
  
  
  • Brandy
  
  
  • Beer
  
  
  • Wine
  
  
  
  

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  Indian Liquor Market Price Range Outlook
  
  
  
  • Economy
  
  
  • Mid-priced
  
  
  • Premium
  
  
  • Super Premium
  
  
  
  

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  Indian Liquor Market Distribution Channel Outlook
  
  
  
  • On-premise
  
  
  • Off-premise
  
  
  • E-commerce
  
  
  
  

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  Indian Liquor Market Packaging Type Outlook
  
  
  
  • Bottles
  
  
  • Cans
  
  
  • Boxes
  
  
  
  

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  Indian Liquor Market Regional Outlook

  
  
  
  
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    North America

    
    
  
  
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    Europe

    
    
  
  
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    South America

    
    
  
  
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    Asia Pacific

    
    
  
  
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    Middle East and Africa