• The term "alcoholic drink" refers to a beverage made by the fermentation of grains, fruits, and other sugar sources. The fermentation process produces wine, beer, and spirits, which is a natural byproduct of yeast digestion of the sugars found in the raw materials used. Beer is one of the most well-known alcoholic beverages, and it is made out of malt, rice, hops, and maize.
• The alcohol market in India is the third biggest in the world and is worth more than $35 billion. Only two other major nations, China and Russia, have larger alcohol industries than India, which ranks among the largest worldwide. The Indian alcohol market is predicted to record a CAGR of 7.4%, amassing US$ 42 bn by the end of 2026.
• For the last three decades, the rate of alcohol consumption in India has been increasing. Following the pandemic, the rapid resurgence of alcohol demonstrates the country's large customer base. Because of India's rapid population growth, the country produces 13 million drinking-age adults each year, with at least 3-5 million eventually consuming alcohol in some form or another, indicating a significant increase in the rate of consumption.
  
• This industry currently employs approximately 20 million people, and with its expanding landscape, more job opportunities are likely to be created. The alcohol industry contributes significantly to the Indian economy. It not only provides up to 2 lakh crores in revenue to the states, but it also directly supports nearly 40 lakh farmers.
  
• According to CARE Research, India's alcohol business is the world's third largest after China and Russia, at $35bn as of FY21. Whiskey, brandy, rum, and vodka are among the spirits produced in India. The alcohol market in India divided into different segments such as country liquor, Indian Made Foreign Liquor (IMFL), beer, and imported liquor. Country liquor commands the highest market share given its affordability.
  
• IMFL: (i) Despite high duties, India is the world's fastest-growing producer of IMFL. It is also the most appealing destination for international alcohol beverage companies. Due to the COVID-19 pandemic, IMFL production and consumption will decrease in FY20 and FY21. According to data from the Centre for Monitoring Indian Economy (CMIE), IMFL imports are predicted to increase by over 12% in FY22, while exports are expected to increase by roughly 2% IMFL is expected to grow at a CAGR of 12% till FY21, and then at a CAGR of 3% from FY21 to FY26. (ii) Whiskey dominates the IMFL category, and India has the largest whiskey industry in the world. India-based United Spirits Limited’s McDowell’s No. 1 is the most prominent whiskey. Its Royal Challenge and Bagpiper are also popular. Other prevalent whiskeys include French Pernod Ricard’s Imperial Blue, Seagram’s Blender’s Pride, Royal Stag, and Japanese Beam Global’s Teachers. Rum is the second most common spirit in India. India-based Mohan Meakin Ltd.’s Old Monk is popular. Gin and vodka also comprise the IMFL category, growing in demand among urban youth and women. Bermuda-based Bacardi’s Bombay Sapphire gin and U.K.-based Diageo’s Smirnoff vodka are top products.
• Beer: Although India had its first brewery in 1830 (in Kasauli, later transferred to Solan) and there has been consistent beer use over the centuries, beer has only recently become a popular beverage in the country. Strong beers make up the majority of the beer category (with an alcohol content of at least 8%). Beer production fell by 5% in FY20 and is expected to fall by roughly 47% in FY21, owing primarily to COVID-19 lockdowns. Now that the economy is reopening in stages, we foresee an uptick in production trend. India-based United Breweries, 42% owned by Dutch beer giant Heineken, dominates the market with its Kingfisher. U.K.-based SAB Miller’s Miller, Foster’s, and Royal Challenge and Denmark Carlsberg's and Tuborg are also popular options. While weaker beers are less common, brands such as Kingfisher provide options with lower alcohol content.
• Country Liquor & Rectified Spirits: Country liquor is the largest consumed alcohol type in India, growing at a rate of 6-8% per year with faster growth in some states in the north and east. The average alcohol content in country liquor is 33% v/v.
• Wine: The modern Indian wine market is modest but expanding; annual per capita wine consumption in India is only 9 milliliters or about 1/8000th of that in France. The main reason for this is that Indians prefer hard liquor and beer, which account for about 98%, whereas wine with low ABV accounts for barely 2% of the market. On the other hand, the consumption of both local and scotch whiskies in India, which is the world's largest growth market for that spirit category, will move the whiskey market forward. According to International Wines and Spirits Record (IWSR) data, scotch is predicted to contribute 10.5 mn cases to total whiskey growth, while others (mostly Indian) are expected to increase 28.2 cases.

Emerging Trends in Alcohol Beverages Industry :

• The Growth of Low & No- Alcohol - Taking advantage of the health and wellness trend, the low and no-alcohol category is expected to see the most innovation and evolution throughout the whole sector.
• E-commerce & Technology - The e-commerce channel is expected to be valued US$45.5 Bn by FY24, greatly exceeding the growth rate of global trade over the following five years, owing to a need for convenience. 
• Pub and cocktail culture - The growing popularity of pub and cocktail culture in urban areas has increased demand for alcoholic beverages in the country, propelling the market forward.
• Brand Ethics & Packaging Innovation - As consumers become more environmentally conscious, firms will be asked to share their approach to ethical and sustainable living.

Peers:

• United Spirits, United Breweries, Radico Khaitan, and other alcohol and non-alcohol manufacturing enterprises are among the company's main competitors.