• India is one of the fastest growing alcoholic beverages markets globally with an estimated market size of 52.5 bn dollars (about Rs 3.9 lakh crore), the Indian Council for Research on International Economic Relations (ICRIER) has said.
• The number of people consuming alcohol increased from 21.9Cr in FY05 to 29.3Cr. in FY18 and is projected to increase to Rs38.6Cr. by FY30.
• Pub and bar culture in India is escalating at significant pace, and is becoming more popular in the age group of 20-45 yrs. Further, the market is anticipated to grow at a CAGR of 11% over the forecast period as alcohol consumption is growing in urban areas of the country.
• The global alcoholic-beverages market is expected to grow from $515.2 bn in 2019 to $528.5 bn in FY20 at a (CAGR) of 3%. The low growth is mainly due to economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it. The market is then expected to recover and grow at a CAGR of 7% from FY21 and reach $647.7 bn in FY23.
• Based on product type, non-craft beers accounted for the largest market share. On the other hand, craft beers being the niche concepts in India have started growing for past few years and are beginning to take shape now.
• Further, the craft beer segment is expected to reach US 900 mn by the end of the FY30.  
• The share of the upper-middle income group in alcohol consumption has increased steadily from 7% to 21% and is expected to increase to 44% by FY30.

Some of the projects that are expected to get commissioned by the end of the current financial year are as follows :

• Uttam Sugar Mills is going to commission molasses based distillery plant with capacity to produce 16.5 thousand kilo ltrs of alcohol per annum. The project also includes setting up of co-generation power plant of three mw capacity. The project will entail a cost of Rs.650 Mn. The project is likely to come up by year end.
• Ganpati Sugar Industries will set up molasses based distillery unit in Chowtkur, Telangana with a capacity to produce 9.9 thousand kilo litres of alcohol per annum. It will also commission an electricity unit of two mw. This project is likely to come up by March 2021 and will cost Rs.574.5 Mn.
• Centurion Industries is setting up a molasses/grain-based distillery at Abdulpur Munna in Uttar Pradesh. The plant will have the capacity to produce 19.8 thousand kilolitres of alcohol in a year.

• High Taxation: Alcohol is a state subject and the aim of most state policies is to earn revenue from alcohol products. Most states derive around one-fifth of their revenue from alcohol taxation, which is their second largest source of income after sales tax. All this is true of many emerging economies of the world, but what is markedly different in India is that beer (4-7% alcohol) gets taxed at the same rate as other spirits that have over 40% alcohol. This means lesser value for money for beer drinkers. Beer in India is thus much more expensive compared to other comparable countries inhibiting growth of the category. Excise increases by some states are extremely steep, and thus even if the rise is passed on to consumers, there is an adverse impact on volumes which can even last for a couple of years. On the other hand, if companies do not pass on the excise increase, it leaves them with a hit on the EBITDA margin front
• Ban on Advertisement:  Advertisement for alcoholic brands is banned in India and companies has to use surrogate advertisement as the last reost. Surrogate advertising involves advertising for products (non-alcoholic) that use the same brand name as the alcohol products. For example, many alcohol companies advertise music CDs, packaged drinking water and other items under the same brand name as their alcohol product. 
• The Ministry of Food Processing Industries which is the Central Government Nodal Agency on Alcohol Policy had set up a “Joint Working Group on Rationalization of Excise Policy and Taxation” in December 2001 and came out with a “Model Excise Policy and Excise Act” to be adopted and implemented in all the States and Union Territories in the Country. The Ministry has called for public opinion on the new Model Policy through press advertisements in June FY05. However, the Government is yet to take a final decision with regard to the Draft Model Policy and Excise Act.
• The Ministry of Social Justice and Empowerment which is the Central Government Nodal Agency on Demand Reduction had set up a Sub Committee under the National Consultative Committee on De-addiction and Rehabilitation (NCCDR) in February FY09 to prepare a National Policy on Substance Use. A Draft Policy was developed and after being reviewed by expert groups, it was submitted to the Parliament Subject Committee in FY12 and awaits final approval of the Government.

Government Regulator:

• The Food Safety and Standards Authority of India (FSSAI) regulates alcoholic beverages in India to guarantee that they are consumed in a safe and legal manner.