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The style and methods to their madness might be different, but citizens of every country have drinks in common. Not just the alcoholic ones, but the virgin drinks are also very popular among all age groups. The masses who prefer a little liquid courage every now and then can be divided into beer drinkers, wine lovers, hard liquor patrons, liqueurs and others. When it comes to India, the trade of alcohol has been growing at a very fast pace during the last decade. As the demographics are changing, thanks to the country now being filled with mostly youths who prefer a certain lifestyle, alcohol beverages have become much more popular. Also, the non-alcoholic drinks are enjoying their own share of the market. These can be divided into carbonated, non-carbonated and hot drinks. Be it juices, carbonated beverages, the ever glorious tea and coffee or bottled water, the number of customers is increasing. The alcohol sector of India is undergoing some very serious times, witnessing a steady upward curve.

The beer segment has been a dominating force for at least the last decade. Kingfisher and Forster’s are a hot favorite. But other brands such as Carling black label, Haywards and premium lager are also picking up some major heat. Wine has also gained a lot of popularity in India. Hence, various vineyards are jumping leaps in the revenue department. Many new companies such as Diageo and Seagrams are venturing into wine making as well. Traditionally, Indians had always preferred home made fresh fruit juices than the ones sold in bottles and cartons. But, the trend is now changing.

Today, many vendors are selling fresh fruit juices in a large number of variants. As now people have disposable incomes, they are investing a lot of money in buying instant juices. Thanks to the humongous  sea of change, the Indian non-alcoholic drinks industry has also had to make a lot of major amendments. The field is more competitive than ever. Various companies such as Tropicana, frooti, slice, onius and other such names are leading the juice industry. Interestingly, all these companies produce juice not from flavors, but from real fruit pulp. The branded fruit juice segment is seeing a growth rate like never before. Even bottled water is seeing a lot of sales. People when on the move, would much rather prefer a bottle of Kinley or bisleri than tap water. This sector is seeing a lot of heat these days.

For everyone wanting to set up a business in the alcoholic or non-alcoholic beverage industry, India can be your gold mine. This sector is on fire at the moment, with a huge customer base and an even bigger potential of sales. There is a lot of hope that, bending to the demand, the taxation rules and other restrictions on the sale of such drinks will be liberalized in the coming time. The future for budding entrepreneurs in this area is very promising and filled with opportunities. A solid capital base and some tactful thinking will do the trick.

Global Alcoholic Beverages Market

Global Alcoholic Beverages Market was valued at $1,344 billion in 2015, and is expected to reach $1,594 billion by 2022, registering a CAGR of 2.1% from 2016 to 2022. For thousands of years, most cultures across the globe have traditionally consumed some form of alcoholic beverage or other. However, local specialty alcoholic beverages still account for the majority of all those that exist. Only a small number have evolved into commodities that are produced commercially on a large scale. On a global level, beer from barley, wine from grapes, and other distilled beverages are sold as commodities. The pricing of these beverages are largely determined by the costs of production and the duties levied on those costs. The effects of prices as measured with price elasticities differ both, across countries and different time periods.


The global alcoholic beverages market is driven by the increase in global young-adult demographic, coupled with high disposable income and consumer demand for premium/super premium products. However, high cost of premium/super premium products, and escalation of non-alcoholic beverages market, owing to health concerns, is expected to restrict the market growth in future. Mergers are expected to remain as the key strategy, as players seek to widen their brand portfolios and expand their market reach.

The global alcoholic beverage market is segmented as follows:

Global Alcoholic beverages market – By Product Type

  1. Beer
  2. Spirits
  3. Wine
  4. Others

Global Alcoholic beverages market – By Packaging

  1. Glass Bottles
  2. Tins
  3. Plastic Bottles
  4. Others

Global Alcoholic beverages market – By Sales Channel

  1. Modern Trade
  2. Specialty Stores
  3. Convenience Stores
  4. Commercial
  5. Hotels/Restaurants/Bars
  6. Online Retailers
  7. Other Retailing Formats

Global Alcoholic Beverages Market Analysis

Consumption of alcoholic beverages in North America is expected to increase due to the growth in young‐adult population, and change in trend to elevated consumption of high-quality alcoholic beverages. Emerging markets such as China and India, are expected to witness the highest increase in demand for alcoholic beverages during the forecast period in Asia-Pacific. This can be primarily attributed to the substantial growth in disposable income in this region. However, Europe is expected to be the fastest growing region, closely followed by LAMEA owing to the increase in alcohol drinking demographic population.

However, among all, Latin America is expected to display the leading 5.4% CAGR between 2017 and 2025. This is mainly because of rising urbanization and increasing per capita income in this region. Furthermore, changing lifestyles, influence of social media, and increasing trend of entertainment at clubs, lounges is driving sales of alcoholic beverages.

Key players in the global alcoholic beverages market profiled in this report are Carlsberg A/S, Diageo Plc., Suntory Holdings Ltd., Brown-Forman Corporation, Craft Brew Alliance Inc., Anheuser-Busch InBev SA/NV, United Breweries Limited, Molson Coors Brewing Co., Accolade Wines Holdings Australia Pty Limited, The Wine Group LLC, Heineken Holding N.V., Asahi Group Holdings Ltd., Halewood International Holdings Plc, Bacardi Limited, Bundaberg Brewed Drinks Pty Ltd, Constellation Brands Inc., The Boston Beer Company Inc., Pernod Ricard SA, DGB Pty Ltd., and Bronco Wine Company.

Beer Hold Substantial Market Share through Forecast Period

eer is a widely consumed alcoholic beverage throughout the world and global production figures have shown an increasing trend during the last decade. In 2015, the United States was the second largest country in worldwide beer production with an amount of about 224 million hectoliters, following only China. On the consumer side, the Czech Republic reported the highest per capita beer consumption in 2015. Traditionally well-known for its large beer culture, people in Germany drank about 104.7 liters per capita in that year.

The global wine market was led by Italy, Spain and France regarding the total amount produced. The U.S. was ranked as the fourth largest production country with a production volume amounting to 23.9 million hectoliters in 2016. The country was also listed among the largest global wine exporters in that year. According to industry experts, the E&J Gallo Winery Inc. was the leading winery worldwide in 2015, based on the commercialized production volume. The California-based winery accounted for a global wine volume market share of 3.39 percent. The company’s main competitors were multi-alcoholic beverage manufacturer Constellation Brands Inc. and wine and spirit specialist The Wine Group Inc. in that year.

Alcoholic Beverages Market in India

Rapid increase in urban population is one of the key factors that is boosting the India alcohol market. Traditionally, brown spirits have been targeted at the urban consumer. As such, increasing urban population coupled with factors such as increasing disposable income and growing preference for whiskies is expected to create avenues for growth of the alcohol market in India. Changing demographics is further expected to boost the India alcohol market. As of 2014, over half the country’s population (53%) was above the age of 25 years. Moreover, estimated median age of the country’s population for the same year was pegged at 27 years. The legal drinking age in India varies from state to state. For instance, 18 years in Goa, Uttar Pradesh and Karnataka; 21 years in Tamil Nadu and Andhra Pradesh; and 25 years in Maharashtra, Delhi and Punjab.

Revenue in the Alcoholic Drinks market amounts to US$67,661m in 2018. The market is expected to grow annually by 7.9% (CAGR 2018-2021).


From an international perspective it is shown that most revenue is generated in China (US$285,901m in 2018).

Beer is a rapidly expanding segment in the Indian alcoholic beverages industry. It is the third largest market and second fastest growing market in the Indian alcoholic beverages industry. Beer market has been segmented into strong beer and mild beer on the basis of their alcohol content. Strong beer which has alcohol content more than 5%, dominates the Indian market stating its popularity and preference.

Vodka is the fastest growing IMFL segment in India. It has growth is rapidly increasing due to increase in pubs, hotels, restaurants, evolving nightlife and consumer preferences.

Wine industry in India is just in its birth stage mainly in cities like Mumbai, Delhi and Bangalore have the maximum share of wine consumers. Imported wines consumption is expected to grow in near future. Most of the International Wine imports are from South Korea, China and France.

Key growth factors

  1. Growing urbanization has introduced a larger consumer group, mainly young men and women to alcoholic beverages and has resulted in more consumers willing to try new products.
  2. Increased consumption of liquor in rural areas is another major reason for the growth in the market. Furthermore, the easy availability and accessibility of alcohol in rural and urban areas is an important factor in determining the growth of the alcoholic beverages market in India.
  3. Factors such as rise in income and increasing social acceptance are expected to support the growth of alcoholic beverages market in India.