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India Sees a Surge in the Market for Alcohol in 2022

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The Ever-Growing Indian Market for Alcohol

India is one of the fastest growing alcohol beverages markets in the world with estimated market size of $52.5 bn in 2020 and is expected to grow at a CAGR (Compound Annual Growth Rate) of 7.8% during the period of 2019-2027 and anticipated to reach at a staggering $68.7 bn by the end of 2027, according to a report published by ICRIER.

Alcohol is consumed on a pan-India scale with a few exceptions from Dry-States, including Bihar, Lakshadweep, Gujarat, Nagaland, and the latest addition to the list Mizoram. Except for the states who have voluntarily prohibited the sale, manufacturing and consumption of Alcohol, it is still famously consumed all over the rest of India.

Arunachal Pradesh, Telangana and Sikkim are the states with the highest population of both genders intaking alcohol.

It should also be noted that drinking rules differ from state to state. The legal Drinking age for alcohol is 18 in Goa, Himachal Pradesh, Karnataka, Sikkim, and Puducherry. 21 years in Andhra Pradesh, Arunachal Pradesh, Assam, Chhattisgarh, Jammu and Kashmir, Jharkhand, Kerala, Madhya Pradesh, Maharashtra, Mizoram, Orissa (Odisha), Rajasthan, Tamil Nadu, Telangana, Tripura, Uttarakhand, Uttar Pradesh, and West Bengal, 25 (now 21 years) in Haryana, Meghalaya, Punjab, Delhi

Alcohol Consumption in India

During the pandemic, where many industries took a major blow to growth and revenues, the alcohol market could still stay afloat, thanks to the sudden availability of time to indulge in leisure activities, also, government initiatives, and attractive discounts that never let the sales die even after the Economy took a huge plunge.

The rise in Alcohol Consumption is also owed to a growing disposable income, the changing shift in the demography with 50% of the population above the age of 25 years, and the increase in party culture, which has seen a rapid pop-up of clubs, pubs and bars more aggressively in metropolitan cities.

The home-grown alcohol labels and the Make in India initiative have also aided in the unprecedented boom and popularity of the liquor industry.

To see how digitalization and the pandemic have affected the sale and consumption behaviour of alcohol, let’s throw some light on the steps taken by the Delhi Government to fare the bad tidings of lockdowns and a crashing economy. Some say it was a bid to revive the slowing economy.

Decrease in Alcohol Prices

Amid an ongoing pandemic, a long line of people awaiting their number in lines at wine and beer shops went viral on social media; well, when you are not going to the office, college or anywhere else, you have all the time to frolic, the decreased liquor prices in Delhi saw people rushing to hoard alcohol, digitalization and online delivery became a weapon against social distancing norms.

Liquor online delivery was allowed in the National Capital. Recently the increased demand saw another initiative undertaken by the Delhi Government, which ruled 25% discount to private sellers, with attractive offers of buying one get one and two plus two.

The Alcohol game in India has a lot to look forward to with many Made in India brands popping up and also with the introduction of more foreign brands for alcohol drinking.