Driven by increasing disposable income levels and growing social acceptance of alcohol consumption, the alcoholic beverages market in India is estimated to cross the $39 billion (over Rs 1,75,950 crore) mark by 2014, as per research firm Datamonitor.
According to a study by the firm, the sector grew at a compound annual growth rate of 12 per cent between 2004 and 2009, with the industry turnover touching $21.7 billion (over Rs 97,910 crore) in 2009.
"India is turning out to be an attractive territory for global players as consumption of alcohol has saturated in many countries and even declined in traditional markets like Europe, while India offers immense growth opportunities," Datamonitor Consumer Markets Analyst Amit Srivastava said in a statement.
He said increasing acceptance of alcohol consumption among the rich and aspiring middle class, coupled with rising disposable income and a large young population, indicate high growth potential for the sector.
"This has provided alcohol manufacturers with a lucrative and expanding target segment," he added.
In addition, with increasing financial and social independence, women in India have also started consuming more alcohol.
"This has encouraged manufacturers to launch low- concentration alcoholic products aimed at female consumers. This is one of the factors pushing the growth of categories such as beer and vodka," Srivastava said.
Manufacturers have resorted to innovative packaging and marketing to drive alcoholic beverage sales.
"Shrewd marketing by liquor brands to position alcohol as a lifestyle product and global exposure have helped to facilitate the acceptance of alcoholic beverages, particularly among the young population," he added.
According to Datamonitor, going forward, the sector will see brisk growth, particularly in low-alcohol products, as manufacturers launch new products and consolidate their existing product line-up.
