India’s Alcoholic Beverage Market to Hit €61B by 2028

Globally, India is the largest market for UK’s alcobev giant Diageo, the second largest for France’s Pernod Ricard, and a key emerging market for Moët Hennessy. India’s rapidly expanding alcoholic beverage (alcobev) market is also a notable contributor to its economy, generating approximately €27.6 billion in annual tax revenues for state governments.

So far, lower-priced and mass products have dominated the alcobev market growth in India. However, the next phase of expansion will be defined by a rapid rise of premium and higher-end segments. According to Ipsita Das, managing director, Moët Hennessy India, almost 120 million people with household income equal to or exceeding $40,000 ( €38,368) will be added to India’s affluent population by 2030. “That is almost double the population of some European nations”, she points out.

Indians are upgrading across consumer segments, “we are seeing notable growth in the entry-level of premium and ultra-premium alcobev categories”, Das says. There are several micro catalysts that are contributing to this growth. “Shifts in the ways people entertain, greater exposure to global trends, improved retail and innovative drinking experiences have gradually evolved Indian consumers beyond traditional drinking patterns”, explains Nita Kapoor, an independent alcobev market consultant.