Registering a robust growth of about 30 per cent on a Y-o-Y basis, alcohol consumption in India will cross 19,000 million litres by 2015 from the current level of 6,700 million litres, industry body Assocham said today.
India's alcoholic beverages market, comprising beer, wine and spirits, will cross the Rs 1.4 lakh crore-mark in 2015, compared to the current size of about Rs 50,700 crore, says an industry-specific analysis of the Associated Chambers of Commerce and Industry of India (Assocham).
A sizeable middle class population with rising spending power and a sound economy are some significant reasons behind the increase in consumption of alcohol in India, according to an Assocham study on the 'Latest Trends in Domestic Liquor Market'.
India is one of the fastest growing alcohol markets in the world and the largest consumer of whiskey, which accounts for almost 80 per cent of the entire liquor market. Owing to India's affinity for hard liquor, the size of whiskey market, currently worth around Rs 40,500 crore, is expected to cross the Rs 54,000 crore-mark within the next two years, it said.
"But with the number of youngsters and income levels on the rise, popularity of beer made from malt is increasing and is expected to reach 2.4 billion litres by 2012," said the Assocham study.
The Indian liquor market, which is divided into various categories like IMFL (Indian-made foreign liquor), imported liquor, domestic liquor and country-made liquor, is brimming with growth. Of late, consumers have developed a fondness for imported liquor and the market is crowded with foreign brands.
Awareness of the health benefits associated with moderate drinking is another significant factor behind this upsurge as nowadays, more Indians are adopting a healthy lifestyle, according to the study.
Urbanisation, together with ever-changing social norms, increased alcohol availability, high intensity marketing and relaxation of overseas trade rules have equally contributed to increased alcohol consumption, according to the Assocham study.
A significant but worrisome reason for increased liquor consumption is that boys and girls in their youth are resorting to drinking at a young age due to high disposable income, lack of parental supervision, changing society norms and