Alcoholic Beverages Industry in India- SWOT Analysis
OVERVIEW
The Indian Alcoholic Beverage Industry has evolved at every stage over the past decade. The industry has changed from being a seller’s market to a buyer’s market. Consumer groups, which were earlier targeted as one large demographic island, have got fragmented into distinct psychographics groups. Brand and media proliferation, information boom and easy access to wide variety of brands have all had a significant impact on the buying behaviors of consumers, who are now clearly seeking “value” over “price”.
The country’s alcoholic beverage market, comprising beer, wine and spirits, will reach over INR 1400bn in 2015 from the current size of around INR 507bn. Alcohol consumption in India will cross 19,000 million litres by 2015 from the current level of 6,700 million litres. The high growth in the alcohol market fuels the buyouts in India.
SCOPE OF THE REPORT
The Indian Alcoholic Beverage Industry has evolved at every stage over the past decade. The industry has changed from being a seller’s market to a buyer’s market. Consumer groups, which were earlier targeted as one large demographic island, have got fragmented into distinct psychographics groups. Brand and media proliferation, information boom and easy access to wide variety of brands have all had a significant impact on the buying behaviors of consumers, who are now clearly seeking “value” over “price”.
The country’s alcoholic beverage market, comprising beer, wine and spirits, will reach over INR 1400bn in 2015 from the current size of around INR 507bn. Alcohol consumption in India will cross 19,000 million litres by 2015 from the current level of 6,700 million litres. The high growth in the alcohol market fuels the buyouts in India.
SCOPE OF THE REPORT
- Industry at a glance
- Contains a study of the major internal and external factors affecting the industry in the form of a SWOT framework
- Gain insight into the industry in terms of the opportunities and threats that will augment and restrict its growth
- Get knowledge about the forte of the industry which will help it to ride in the lead
1. OVERVIEW
1.1 STRUCTURE OF THE INDUSTRY
2. SWOT ANALYSIS
2.1 STRENGTHS
2.1.1 Recession Proof Industry
2.1.2 India- An Attractive Market for Spirits
2.1.3 Favorable Demographics
2.2 WEAKNESS
2.2.1 Multiplicity of Taxes
2.2.2 Ban on Advertising
2.2.3 Inter State Transfer Fees on Molasses
2.2.4 Limited SKUs Result in Slower Distribution Expansion
2.3 OPPORTUNITIES
2.3.1 Low Per Capita Consumption of Alcohol in India -Room for Growth
2.3.2 Rising Middle Class
2.3.3 Increase in Disposable Income and Discretionary Spending
2.4 THREATS
2.4.1 Religious Influence
2.4.2 Increasing Competition
2.4.3 Increasing Raw Material Costs
2.4.4 Inappropriate and Delay in Government Policies
1.1 STRUCTURE OF THE INDUSTRY
2. SWOT ANALYSIS
2.1 STRENGTHS
2.1.1 Recession Proof Industry
2.1.2 India- An Attractive Market for Spirits
2.1.3 Favorable Demographics
2.2 WEAKNESS
2.2.1 Multiplicity of Taxes
2.2.2 Ban on Advertising
2.2.3 Inter State Transfer Fees on Molasses
2.2.4 Limited SKUs Result in Slower Distribution Expansion
2.3 OPPORTUNITIES
2.3.1 Low Per Capita Consumption of Alcohol in India -Room for Growth
2.3.2 Rising Middle Class
2.3.3 Increase in Disposable Income and Discretionary Spending
2.4 THREATS
2.4.1 Religious Influence
2.4.2 Increasing Competition
2.4.3 Increasing Raw Material Costs
2.4.4 Inappropriate and Delay in Government Policies
LIST OF FIGURES AND TABLES
Figure 1 Indian Alcoholic Beverage - Market Size (INR Bn)
Figure 2 Alcohol Consumption in India (In mn litres)
Figure 3 Market Segmentation- Indian Liquor Industry
Figure 22 Sugarcane Production in India
Figure 23 Per Capita Consumption- litres per annum (lpa)
Figure 24 Number of Middle Class Households (In Millions, Current-2026E)
Figure 25 Growing Discretionary Spend (2000-20)
Figure 26 WPI of Molasses
Figure 27 WPI of Glass Bottles
Table 7 Liquor Companies in India and Major Brands
Figure 1 Indian Alcoholic Beverage - Market Size (INR Bn)
Figure 2 Alcohol Consumption in India (In mn litres)
Figure 3 Market Segmentation- Indian Liquor Industry
Figure 22 Sugarcane Production in India
Figure 23 Per Capita Consumption- litres per annum (lpa)
Figure 24 Number of Middle Class Households (In Millions, Current-2026E)
Figure 25 Growing Discretionary Spend (2000-20)
Figure 26 WPI of Molasses
Figure 27 WPI of Glass Bottles
Table 7 Liquor Companies in India and Major Brands
