 "alcohol, liquor, beverages")
Shares of alcoholic beverages (AlcoBev) companies were in demand and rallied up to 14 per cent on the BSE in Wednesday’s intra-day trade backed by heavy volumes on healthy business outlook.
In India, per capita alcohol consumption is projected to increase gradually, with an estimated rise of 0.1 litres (a 2 per cent increase) between 2024 and 2029. By 2029, the per capita consumption is expected to reach a new peak of 5.06 litres.
Several factors are driving this growth, including rising incomes, urbanisation, increased access to alcoholic products, and a trend towards premiumisation. Younger consumers are also contributing to the expansion of the market. The growth is further supported by demographic shifts, an expanding middle class, and government policies that are increasingly favourable to the sector.
Tilaknagar Industries (TI), the fourth largest Indian-made foreign liquor (IMFL) player, stock surged 14 per cent to Rs 250. TI is the maker of India's highest-selling premium brandy, Mansion House Brandy. The company sells over 15 different brands of brandy, whisky, gin, rum, and vodka. TI’s brandy labels primarily occupy the Prestige & Above (P&A) segments.
Within IMFL, Brandy is the second-largest product category, accounting for more than 20 per cent share of the industry by volume. Moreover, the premium Brandy industry in India is expected to continue expanding market share within the overall P&A IMFL segment.
Also Read
Radico Khaitan surged 10 per cent to Rs 1,724 on the BSE in intra-day trade. United Spirits (USL) hit a record high of Rs 1,305, as it rallied 8 per cent. The stock surpassed its previous high of Rs 1,245.15 touched on May 8, 2024.
USL has guided for back-ended growth in FY25, as volumes in H1 (April to September) may be muted on high base last year, and subdued demand environment. But growth in H2 (October to March) may be strong. USL continues to invest in a wider range of portfolio, with innovation in multiple layers such as Godawan single malt, Don Julio, and McDowell’s single malt whisky, analysts at Elara Capital said.
Among other stocks, Sula Vineyards and United Breweries soared 7 per cent each at Rs 516.15 and Rs 2,069.30, respectively.
Globally, India is set to become the fifth-largest contributor to the AlcoBev market's revenues in the near to medium term. This growth is part of a broader trend where emerging markets are increasingly influencing global economic dynamics. The Indian AlcoBev sector not only underscores the country's growing influence in global markets but also highlights the economic opportunities that arise from its internal market dynamics and demographic advantages, Sula Vineyards said in its FY24 annual report.
India’s Alcobev industry is projected to experience significant growth, touching a market size of $64 billion by 2030, from $52.4 billion in 2021, representing an annual increase of 6.54 per cent between 2023 and 2027. The market is set to grow from an estimated size of approximately $55 billion in 2024 to around $112 billion by 2034, with a 7.2 per cent CAGR. This growth trajectory is underpinned by demographic trends, evolving consumer lifestyles, and a shift in cultural perceptions regarding alcohol consumption, the company said.
