A new forecast from IWSR, a leading drinks market analysis firm, predicts that global alcohol consumption volumes will decline by 2035. However, India is emerging as a notable exception, with rising demand for spirits, beer, and wine, as newer drink categories like canned cocktails gain traction worldwide.
Global Trends and India's Divergence
According to IWSR's latest report, total alcohol volumes across spirits, beer, and wine are expected to decrease globally over the next decade. This decline is attributed to shifting consumer preferences, health consciousness, and the rise of alternative beverages. In contrast, India's alcohol market is poised for growth, fueled by a young population, increasing disposable incomes, and evolving social norms.
Key Drivers of India's Growing Alcohol Market
- Economic Expansion: India's robust economic growth has boosted consumer spending, making alcoholic beverages more accessible to a broader demographic.
- Changing Demographics: A large and youthful population, particularly in urban areas, is driving experimentation with different drink types.
- Cultural Shifts: Alcohol consumption is becoming more socially acceptable, especially among women and in social settings.
- Premiumization: Consumers are increasingly opting for premium and craft beverages, including imported spirits and niche wines.
Global Decline and New Categories
While traditional alcohol categories face headwinds, newer products like canned cocktails and ready-to-drink (RTD) beverages are gaining market share. IWSR notes that these alternatives are appealing to younger consumers seeking convenience and variety. The global shift toward moderation and low- or no-alcohol options also contributes to the overall volume decline.
India's Unique Position
India's alcohol market is characterized by strong demand for whiskey, brandy, and rum, with beer also showing steady growth. Wine consumption, though smaller, is expanding rapidly in metropolitan areas. The country's regulatory environment, including state-level variations in taxation and distribution, poses challenges but also creates opportunities for local and international players.
Industry experts believe that India's drinking culture will continue to evolve, with premium and craft segments leading growth. The IWSR forecast underscores India's role as a bright spot in an otherwise contracting global market, driven by its demographic dividend and economic momentum.
