Alcoholic Drinks in India
Euromonitor International's Alcoholic Drinks in India market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 167 | Publication date: Feb 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Beer; Cider/perry; RTDs/High-strength premixes; Spirits; Wine
Executive summary
Alcoholic drinks sees robust growth
Rising affluence, a lifting of social taboos about alcohol and deregulation continued to buoy alcoholic drinks in 2008, with volume sales maintaining a double-digit growth rate for the third subsequent year. 2008 also saw domestic and international alcoholic drinks companies expanding their production and distribution capabilities in India. Meanwhile, the rationalisation of import duties brought down prices of imported alcoholic drinks brands. Growth was also boosted by the launch of international beer and spirits brands and a mushrooming of new wineries in India.
Input costs soar
The costs of key inputs such as barley, glass and fuel rose sharply in 2007 and 2008. While spirits and wine companies did not pass on the costs directly to the consumer, beer saw sharp price hikes which caused a slowdown in volume growth rates compared to the high growth rates of 2006 and 2007. With margins being squeezed, spirits companies undertook cost-cutting measures, such as reducing glass consumption by adopting bottle recycling and introducing new packaging. Beer companies meanwhile sought to increase economies of scale by opening large breweries and reducing contract manufacturing. Furthermore, leading alcoholic drinks companies were proactive in increasing the domestic production of high grade barley in India by promoting the contract cultivation of barley.
Domestic companies thrive despite competition from multinationals
In spite of competitive pressure from international brands, domestic companies continued to dominate Indian alcoholic drinks, including United Spirits, United Breweries and Champagne Indage. Domestic wine companies also dominate wine volume sales and expanded the Indian wine consumer base with low cost wines. Multinationals such as Heineken, Beam Global and Diageo India achieved high growth rates for their brand sales through aggressive marketing, partnerships and acquisitions. However, domestic players dominated sales through their pre-existing widespread production and distribution networks and by updating their brand portfolios with premium brands positioned in direct competition with international brands.
Alcoholic drinks enters supermarkets/hypermarkets and branded outlets
The retailing of wine and beer via supermarkets/hypermarkets became legal in Maharashtra, West Bengal and Chandigarh in the latter half of the review period. However, food/drink/tobacco specialists continued to dominate volume sales due to their greater number and penetration across India. The retailing of spirits remained restricted to food/drink/tobacco specialists. Unlike often dingy and downmarket food/drink/tobacco specialists, supermarkets/hypermarkets offers a respectable and premium atmosphere for alcoholic drinks consumers and thus gained popularity quickly. Leading alcoholic drinks companies meanwhile expanded their presence in the branded retail of alcohol in 2008 by launching their own premium off-trade outlets.
Alcoholic drinks to continue robust performance
A double-digit volume CAGR is expected over the forecast period. Changing lifestyles, high disposable income levels and reduced social restrictions on alcohol consumption are expected to expand the consumer base for alcoholic drinks in India. Moreover, trading up and experimentation among the young and affluent is expected to drive sales of emerging product categories such as wine, white spirits and Scotch whisky. Nascent categories such as liqueurs and tequila are expected to attract consumer interest and generate trial purchases, while mature product categories such as Indian whiskey, brandy and dark rum are expected to be boosted by rural consumers shifting to economy brands.
Table of contents
ALCOHOLIC DRINKS IN INDIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Alcoholic drinks sees robust growth
Input costs soar
Domestic companies thrive despite competition from multinationals
Alcoholic drinks enters supermarkets/hypermarkets and branded outlets
Alcoholic drinks to continue robust performance
KEY TRENDS AND DEVELOPMENTS
Consumers demand premium brands
Manufacturers embrace portable packaging
Experimentation on the rise
International brands increase share
Specialist retailers continue to dominate
Merger and acquisition activity
TERRITORY KEY TRENDS AND DEVELOPMENTS
East and Northeast India
North India
South India
West India
RURAL VS URBAN KEY TRENDS AND DEVELOPMENTS
MARKET BACKGROUND
Legislation
TAXATION AND DUTY LEVIES
Table 1 Taxation and Duty Levies on Beer 2008
Table 2 Taxation and Duty Levies on Wine 2008
Table 3 Taxation and Duty Levies on RTDs 2008
Table 4 Taxation and Duty Levies on Spirits 2008
Table 5 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Sectors 2008
Table 6 Selling Margin of a Typical Domestically Produced Beer Brand 2008
Table 7 Selling Margin of a Typical Domestically Produced Wine Brand 2008
Table 8 Selling Margin of a Typical Imported Wine Brand 2008
Table 9 Selling Margin of a Typical Domestically Produced Spirits Brand 2008
Table 10 Selling Margin of a Typical Imported Spirits Brand 2008
OPERATING ENVIRONMENT
MARKET INDICATORS
Table 11 Retail Consumer Expenditure on Alcoholic Drinks 2003-2008
MARKET DATA
Table 12 Sales of Alcoholic Drinks by Sector: Total Volume 2003-2008
Table 13 Sales of Alcoholic Drinks by Sector: Total Value 2003-2008
Table 14 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2003-2008
Table 15 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2003-2008
Table 16 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Volume 2008
Table 17 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Value 2008
Table 18 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Volume 2008
Table 19 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Value 2008
Table 20 Sales of Alcoholic Drinks by Region: Total Volume 2003-2008
Table 21 Sales of Alcoholic Drinks by Region: Total Value 2003-2008
Table 22 Sales of Alcoholic Drinks by Region: % Total Volume Growth 2003-2008
Table 23 Sales of Alcoholic Drinks by Region: % Total Value Growth 2003-2008
Table 24 Sales of Alcoholic Drinks by Rural-Urban % Analysis 2008
Table 25 Company Shares of Alcoholic Drinks by Global Brand Owner 2004-2007
Table 26 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2008
Table 27 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2008
Table 28 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2008-2013
Table 29 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2008-2013
Table 30 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2008-2013
Table 31 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2008-2013
Table 32 Forecast Sales of Alcoholic Drinks by Region: Total Volume 2008-2013
Table 33 Forecast Sales of Alcoholic Drinks by Region: Total Value 2008-2013
Table 34 Forecast Sales of Alcoholic Drinks by Region: % Total Volume Growth 2008-2013
Table 35 Forecast Sales of Alcoholic Drinks by Region: % Total Value Growth 2008-2013
DEFINITIONS
Sources
Summary 1 Research Sources
LOCAL COMPANY PROFILES - INDIA
ALLIED BLENDERS & DISTILLERS PVT LTD - ALCOHOLIC DRINKS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Allied Blenders & Distillers Pvt Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 3 Allied Blenders & Distillers Pvt Ltd: Competitive Position 2007
CHAMPAGNE INDAGE LTD - ALCOHOLIC DRINKS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Champagne Indage Ltd: Key Facts
Summary 5 Champagne Indage Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 6 Champagne Indage Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 7 Champagne Indage Ltd: Competitive Position 2007
JOHN DISTILLERIES LTD - ALCOHOLIC DRINKS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 8 John Distilleries Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 9 John Distilleries Ltd: Competitive Position 2007
MOHAN MEAKIN LTD - ALCOHOLIC DRINKS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Mohan Meakin Ltd: Key Facts
Summary 11 Mohan Meakin Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 12 Mohan Meakin Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 13 Mohan Meakin Ltd: Competitive Position 2007
RADICO KHAITAN LTD - ALCOHOLIC DRINKS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 14 Radico Khaitan Ltd: Key Facts
Summary 15 Radico Khaitan Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 16 Radico Khaitan Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 17 Radico Khaitan Ltd: Competitive Position 2007
SAMANT SOMA WINES LTD - ALCOHOLIC DRINKS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 18 Samant Soma Wines Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 19 Samant Soma Wines Ltd: Competitive Position 2007
SEAGRAM INDIA LTD - ALCOHOLIC DRINKS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 20 Seagram India Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 21 Seagram India Ltd: Competitive Position 2007
UNITED BREWERIES LTD - ALCOHOLIC DRINKS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 22 United Breweries Ltd: Key Facts
Summary 23 United Breweries Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 24 United Breweries Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 25 United Breweries Ltd: Competitive Position 2007
UNITED SPIRITS LTD - ALCOHOLIC DRINKS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 26 United Spirits Ltd: Key Facts
Summary 27 United Spirits Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 28 United Spirits Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 29 United Spirits Ltd: Competitive Position 2007
BEER IN INDIA
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Lager Price Band Methodology
Summary 30 Lager by Price Band 2008
Published Data Comparisons
SECTOR DATA
Table 36 Sales of Beer by Subsector: Total Volume 2003-2008
Table 37 Sales of Beer by Subsector: Total Value 2003-2008
Table 38 Sales of Beer by Subsector: % Total Volume Growth 2003-2008
Table 39 Sales of Beer by Subsector: % Total Value Growth 2003-2008
Table 40 Sales of Beer by On-trade vs Off-trade Split: Volume 2003-2008
Table 41 Sales of Beer by On-trade vs Off-trade Split: Value 2003-2008
Table 42 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2003-2008
Table 43 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2003-2008
Table 44 Beer: Production, Imports and Exports: Total Volume 2002-2007
Table 45 Beer Exports by Country of Destination: Total Volume 2002-2007
Table 46 Beer Exports by Country of Destination: Total Value 2002-2007
Table 47 Beer Imports by Country of Origin: Total Volume 2002-2007
Table 48 Beer Imports by Country of Origin: Total Value 2002-2007
Table 49 Company Shares of Beer by National Brand Owner 2003-2007
Table 50 Company Shares of Beer by Global Brand Owner 2003-2007
Table 51 Brand Shares of Beer 2004-2007
Table 52 Forecast Sales of Beer by Subsector: Total Volume 2008-2013
Table 53 Forecast Sales of Beer by Subsector: Total Value 2008-2013
Table 54 Forecast Sales of Beer by Subsector: % Total Volume Growth 2008-2013
Table 55 Forecast Sales of Beer by Subsector: % Total Value Growth 2008-2013
CIDER/PERRY IN INDIA
HEADLINES
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Published Data Comparisons
RTDS/HIGH-STRENGTH PREMIXES IN INDIA
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Published Data Comparisons
SECTOR DATA
Table 56 Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2003-2008
Table 57 Sales of RTDS/High-strength Premixes by Subsector: Total Value 2003-2008
Table 58 Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2003-2008
Table 59 Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2003-2008
Table 60 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Volume 2003-2008
Table 61 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Value 2003-2008
Table 62 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Volume Growth 2003-2008
Table 63 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Value Growth 2003-2008
Table 64 Company Shares of RTDS/High-strength Premixes by Global Brand Owner 2003-2007
Table 65 Company Shares of RTDS/High-strength Premixes by National Brand Owner 2003-2007
Table 66 Brand Shares of RTDS/High-strength Premixes 2004-2007
Table 67 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2008-2013
Table 68 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Value 2008-2013
Table 69 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2008-2013
Table 70 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2008-2013
WINE IN INDIA
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
Published Data Comparisons
SECTOR DATA
Table 71 Sales of Wine by Subsector: Total Volume 2003-2008
Table 72 Sales of Wine by Subsector: Total Value 2003-2008
Table 73 Sales of Wine by Subsector: % Total Volume Growth 2003-2008
Table 74 Sales of Wine by Subsector: % Total Value Growth 2003-2008
Table 75 Sales of Wine by On-trade vs Off-trade Split: Volume 2003-2008
Table 76 Sales of Wine by On-trade vs Off-trade Split: Value 2003-2008
Table 77 Sales of Wine by On-trade vs Off-trade Split: % Volume Growth 2003-2008
Table 78 Sales of Wine by On-trade vs Off-trade Split: % Value Growth 2003-2008
Table 79 Volume Sales of Still Red Wine by Price Segment 2003-2008
Table 80 Volume Sales of Still White Wine by Price Segment 2003-2008
Table 81 Volume Sales of Other Sparkling Wine by Price Segment 2003-2008
Table 82 Sales of Still Red Wine by Grape/Varietal Type 2003-2008
Table 83 Sales of Still White Wine by Grape/Varietal Type 2003-2008
Table 84 Sales of Still Red Wine by Quality Classification 2003-2008
Table 85 Sales of Still White Wine by Quality Classification 2003-2008
Table 86 Wine Production, Imports and Exports: Total Volume 2002-2007
Table 87 Wine Exports by Country of Destination: Total Volume 2002-2007
Table 88 Wine Exports by Country of Destination: Total Value 2002-2007
Table 89 Wine Imports by Country of Origin: Total Volume 2002-2007
Table 90 Wine Imports by Country of Origin: Total Value 2002-2007
Table 91 Company Shares of Still Light Grape Wine by National Brand Owner 2003-2007
Table 92 Company Shares of Still Light Grape Wine by Global Brand Owner 2003-2007
Table 93 Brand Shares of Still Light Grape Wine 2004-2007
Table 94 Company Shares of Champagne by National Brand Owner 2004-2007
Table 95 Company Shares of Champagne by Global Brand Owner 2004-2007
Table 96 Brand Shares of Champagne 2004-2007
Table 97 Company Shares of Other Sparkling Wine by National Brand Owner 2003-2007
Table 98 Company Shares of Other Sparkling Wine by Global Brand Owner 2003-2007
Table 99 Brand Shares of Other Sparkling Wine 2004-2007
Table 100 Company Shares of Fortified Wine and Vermouth by National Brand Owner 2004-2007
Table 101 Company Shares of Fortified Wine and Vermouth by Global Brand Owner 2004-2007
Table 102 Brand Shares of Fortified Wine and Vermouth 2004-2007
Table 103 Forecast Sales of Wine by Subsector: Total Volume 2008-2013
Table 104 Forecast Sales of Wine by Subsector: Total Value 2008-2013
Table 105 Forecast Sales of Wine by Subsector: % Total Volume Growth 2008-2013
Table 106 Forecast Sales of Wine by Subsector: % Total Value Growth 2008-2013
SPIRITS IN INDIA
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Vodka, gin and other blended Scotch whisky Price band methodology
Published Data Comparisons
SECTOR DATA
Table 107 Sales of Spirits by Subsector: Total Volume 2003-2008
Table 108 Sales of Spirits by Subsector: Total Value 2003-2008
Table 109 Sales of Spirits by Subsector: % Total Volume Growth 2003-2008
Table 110 Sales of Spirits by Subsector: % Total Value Growth 2003-2008
Table 111 Sales of Spirits by On-trade vs Off-trade Split: Volume 2003-2008
Table 112 Sales of Spirits by On-trade vs Off-trade Split: Value 2003-2008
Table 113 Sales of Spirits by On-trade vs Off-trade Split: % Volume Growth 2003-2008
Table 114 Sales of Spirits by On-trade vs Off-trade Split: % Value Growth 2003-2008
Table 115 Sales of Other Blended Scotch Whisky by Premium/Super-premium Split 2003-2008
Table 116 Sales of Gin by Premium/Super-premium Split 2003-2008
Table 117 Sales of Vodka by Premium/Super-premium Split 2003-2008
Table 118 Sales of Flavoured vs Non-flavoured Vodka 2003-2008
Table 119 Spirits Production, Imports and Exports: Total Volume 2002-2007
Table 120 Spirits Exports by Country of Destination: Total Volume 2002-2007
Table 121 Spirits Exports by Country of Destination: Total Value 2002-2007
Table 122 Spirits Imports by Country of Origin: Total Volume 2002-2007
Table 123 Spirits Imports by Country of Origin: Total Value 2002-2007
Table 124 Whisk(e)y Production, Imports and Exports: Total Volume 2002-2007
Table 125 Brandy & Cognac Production, Imports and Exports: Total Volume 2002-2007
Table 126 Vodka Production, Imports and Exports: Total Volume 2002-2007
Table 127 Gin Production, Imports and Exports: Total Volume 2002-2007
Table 128 Rum Production, Imports and Exports: Total Volume 2002-2007
Table 129 Tequila Production, Imports and Exports: Total Volume 2002-2007
Table 130 Liqueurs Production: Total Volume 2002-2007
Table 131 Company Shares of Spirits by National Brand Owner 2003-2007
Table 132 Company Shares of Spirits by Global Brand Owner 2003-2007
Table 133 Brand Shares of Spirits 2004-2007
Table 134 Forecast Sales of Spirits by Subsector: Total Volume 2008-2013
Table 135 Forecast Sales of Spirits by Subsector: Total Value 2008-2013
Table 136 Forecast Sales of Spirits by Subsector: % Total Volume Growth 2008-2013
Table 137 Forecast Sales of Spirits by Subsector: % Total Value Growth 2008-2013