The Indian liquor market in the third-largest in the world. The percentage of Indian population consuming liquor around 30-35%. The Industry mainly of 4 segments IMFL, BEER, COUNTRY LIQUOR, & WINE, there is one more Luxury Segment which at top of pyramid with very low volumes.
IMFL Segment is largest segment of the Indian liquor industry in terms of value, due to the price per bottle, making up ~50-55% of the total market by value. It is further bifurcated into Whisky, Rum, Brandy, Vodka, and Gin. It is expected the market valuation to touch INR 3,000 billion by 2026, with a projection of CAGR of 5% -5.5%.Beer is also one of the segments which is become popular and gaining markets share. Consolidated beer market is also growing at 6-8%, going forward due to new product launch which are nowadays healthier and also of great importance according to todays lifestyle are gaining momentum. Country liquor are low quality drinks which are very local and cheap, Labour, contractors, middle class workers, drivers etc. generally consume this product and sale is also equally near beer market in value terms beer would have edge over country liquor, but market is growing at 10-15%.WINE is all together smallest of the segment in India till now, generally wine is home made product and also lot of house in western parts of India make at home. There are big players in this segment to but compare to other very little and growth rate can be assumed between 15-20%.Drawback of Industry: High taxed Industry, Price sensitive, Addictive in Nature, Restricted Marketing.
Branding plays important role in growth, Online ordering in current scenario have change the outlook for this sector. Going forward online business would lead to the growth of this Industry. Typically like grocery, Fashion product customers would be able to order online and get delivery as and when required with no hassle.
Road Ahead
The Online retail sale would lead to added growth going forward and direct selling would give boost to better margins to companies. Growth of 8-10% expected going forward.
BENEFICIARIES : UNITED BREWERIES, RADICO KHAITAN, GM BREWERIES.GLOBUS SPIRITS, UNITED SPIRITS, ASSOCIATED ALCOHOL
