Alcohol market in India - statistics & facts
India's alcoholic beverage market is ranked sixth globally in terms of revenue generation. Even though alcohol such as wine or fermented juice is consumed for medical purposes in Ayurveda, its consumption is controversial, and often a politically sensitive topic among Indians. Because of distinct cultural diversity and varying laws regulating Indian states, alcohol drinking habits vary throughout the country. With the development of reasonably priced premium brands and the changing consumer behavior, particularly among the younger generation, the liquor sector in the Indian subcontinent has undergone rapid transformation. On the one hand, excessive alcohol consumption can lead to chronic health problems, while on the other, alcohol sales are a key source of revenue for most Indian states.
In addition, the most widely consumed indigenous alcoholic beverage is called “Desi Daru”, which is made up of molasses, a sugarcane by-product. Desi Daru, in addition to wine and other alcoholic beverages made by indigenous tribes, serves as a foundation for a large segment of India's rural population. On the contrary, the most preferred alcoholic beverage among urban Indians was beer.
The legal drinking age varies from state to state, while some states ban alcohol altogether. These included Bihar, Gujarat, Lakshadweep, Nagaland, and some districts in Manipur. Besides, “dry days” occur a few times a year across the country (without exception) during which the sale of alcohol is prohibited. These occurred annually every Republic Day, Independence Day, Gandhi Jayanti, and election day. Even with the heavy regulations, the alcohol market is poised for growth in the coming years, driven by consumer preferences, changing demographics, and lifestyle.
Diversity of alcoholic beverages
The alcohol market in the country comprises mainly Indian-made Indian liquor (IMIL), Indian-made foreign liquor (IMFL), wine, beer, and imported alcohol. Heavy import duties and taxes make the latter minuscule players in the country’s alcohol market. While most alcoholic imports came from the United Kingdom and the United States. Spirits such as brandy, whiskey, and scotch dominated the alcoholic beverages imports to India.In addition, the most widely consumed indigenous alcoholic beverage is called “Desi Daru”, which is made up of molasses, a sugarcane by-product. Desi Daru, in addition to wine and other alcoholic beverages made by indigenous tribes, serves as a foundation for a large segment of India's rural population. On the contrary, the most preferred alcoholic beverage among urban Indians was beer.
Alcohol consumption trends
About 12 billion liters of alcoholic beverages were consumed in the country in 2023. According to a national survey, in the northeast and eastern regions of India, alcohol consumption was higher for both men and women. Additionally, both the southern and northern regions of the country had high rates of male alcohol consumption. States with high alcohol consumption among men included Arunachal Pradesh, Telangana, Sikkim, Manipur, Goa, and Jharkhand. All northeast states, as well as Telangana, had high rates of female alcohol consumption as compared to the rest of the country.The legal drinking age varies from state to state, while some states ban alcohol altogether. These included Bihar, Gujarat, Lakshadweep, Nagaland, and some districts in Manipur. Besides, “dry days” occur a few times a year across the country (without exception) during which the sale of alcohol is prohibited. These occurred annually every Republic Day, Independence Day, Gandhi Jayanti, and election day. Even with the heavy regulations, the alcohol market is poised for growth in the coming years, driven by consumer preferences, changing demographics, and lifestyle.
