Report Overview

India Vodka and Gin Market - Industry Trends & Forecast Report, 2029

India vodka and gin market size was estimated at USD 1,450.6 million in 2022. During the forecast period between 2023 and 2029, the size of India vodka and gin market is projected to grow at a CAGR of 9.34% reaching a value of USD 2,478.06 million by 2029. Major growth drivers for the India vodka and gin market include an increasing young population and a rising level of disposable income. This growing segment, particularly in urban areas, exhibits a heightened interest in experimenting with the latest alcoholic beverages like vodka and gin. The cocktail culture is on the rise, with the emergence of cocktail bars and mixology trends contributing to the growing demand for vodka and gin as crucial base spirits for crafting an array of innovative cocktails. Leading vodka and gin brands are making substantial investments in marketing and branding, effectively increasing both brand awareness and consumer engagement. Also, there is a growing inclination towards premium and high-quality alcoholic beverages, as the economy improves, with consumers increasingly willing to pay more for vodka and gin brands offering unique flavor profiles.

India Vodka and Gin Market – Overview

The India vodka and gin market represents the sector in India dedicated to the production, distribution, and consumption of vodka and gin alcoholic beverages. This market encompasses the manufacturing and promotion of various vodka and gin brands, including both domestic and international products, and their sale through diverse channels, such as liquor stores, bars, restaurants, and online platforms. Its dynamics are shaped by factors like evolving demographics, shifting consumer preferences, the rise of cocktail culture, marketing strategies, and the increasing demand for premium and high-quality alcoholic beverages. India, celebrated for its diverse culture and rich heritage, has undergone a remarkable shift in its alcohol industry, traditionally favoring spirits like whiskey and rum. However, there has been a noticeable surge in the popularity of vodka and gin, indicating changing consumer preferences and the evolution of a dynamic drinking culture.

India Vodka and Gin Market

Growth Drivers

High Disposable Income

The India Vodka and Gin Market are experiencing significant growth, primarily due to the rising disposable income levels in the country. As more individuals have more money to spend, there is an increased inclination toward indulging in premium and high-quality alcoholic beverages, with vodka and gin emerging as favored choices. This boost in disposable income has encouraged the younger demographic, particularly in urban areas, to experiment with trendy alcoholic drinks, driving up the demand for vodka and gin. The market has responded by offering a wide range of domestic and international brands, and this economic upswing is reshaping consumer preferences and contributing to the market's expansion.

Changing Drinking Culture

The changing drinking culture in India is significantly impacting the India Vodka and Gin Market. Traditionally dominated by brown spirits, India's evolving drinking culture is witnessing a surge in the popularity of gin. This transformation is driven by factors such as the availability of high-quality locally-produced spirits, the rise of a dynamic cocktail culture, and a willingness to experiment with diverse flavors. In 2022, the demand for gin recorded a remarkable 28% year-on-year growth, particularly in the premium segment, where gins priced at INR 1,000 or more for a 750 ml bottle have gained substantial traction. This 'gin-surgence' is led by a new generation of consumers who are adventurous and open to exploring various spirits, with gin as their preferred choice. The growth of cocktail culture, gin festivals, and a burgeoning community of gin enthusiasts further contribute to the evolving drinking culture in India. Gin is becoming the favored spirit, especially among urban residents with higher disposable incomes.

Restraints

Increasing Competition

Intensifying competition in the India vodka and gin market serves as a restraining force on its growth. While the market shows significant potential, with rising disposable incomes and a growing preference for premium products, the presence of numerous domestic and international players has intensified competition. As more distilleries and brands enter the market, the competition for market share becomes fierce. This rivalry can lead to pricing pressures, increased marketing expenses, and the need for continuous product innovation to stand out. While competition can benefit consumers with diverse offerings, it poses challenges for market players in maintaining profitability and achieving sustained growth.

Impact of COVID-19 on India Vodka and Gin Market

COVID-19 pandemic had a mixed impact on the India vodka and gin market. Lockdowns and restrictions on bars and restaurants led to a sharp decline in on-premises consumption. However, off-premises sales, particularly through e-commerce, witnessed growth as consumers shifted to home consumption. The economic uncertainties caused by the pandemic affected consumer spending, impacting the demand for premium vodka and gin. Brands adapted by promoting at-home mixology, innovative packaging, and cost-effective options. Overall, the market faced challenges but also saw opportunities in the changing consumer behavior and the rise of online sales, ultimately reshaping the landscape of the vodka and gin industry in India.

India Vodka and Gin Market

Segmental Coverage

India Vodka and Gin Market – By Type

By type, the India vodka and gin market is bifurcated into Vodka and Gin segments. The vodka segment holds a higher share in the India vodka and gin market by type. Vodka is a versatile spirit that can be consumed in various ways and easily mixed into cocktails, making it a popular choice for a wide range of consumers. Additionally, it is often perceived as a smoother and more neutral spirit, appealing to a broader audience. Furthermore, the vodka segment has witnessed significant innovation with the introduction of flavored and premium vodka options, attracting consumers who seek unique and high-quality experiences. These factors collectively contribute to vodka's dominance in the Indian market over gin. Also, vodka segment is subdivided into flavored and non-flavored. The flavored subsegment dominates the market. Flavored vodka offerings provide a wide range of taste profiles, making them attractive to a diverse consumer base with varying preferences. Their adaptability for use in cocktails and mixology further enhances their popularity. Flavored vodkas tend to resonate with a younger demographic and those seeking unique and innovative drinking experiences. As a result, the flavored vodka subsegment has captured a significant market share, capitalizing on the evolving consumer preferences, particularly in urban areas.

India Vodka and Gin Market – By Distribution Channel

By distribution channel, the India vodka and gin market is split into Offline and Online segments. The offline segment holds a higher share in the India vodka and gin market by distribution channel. It can be attributed to regulatory constraints, consumer preferences, trust, reliability, and cultural aspects. Various states in India have stringent regulations or complete bans on online alcohol sales. For instance, Maharashtra prohibits online alcohol sales, while Delhi permits it but imposes rigorous regulations. These restrictions have bolstered the importance of offline distribution channels, including liquor shops and bars. Also, these offline channels represent a significant revenue source for the states.

India Vodka and Gin Market – By Region

Regionally, the India vodka and gin market is segmented as North India, South India, East India, and West India. East India region dominates the India vodka and gin market. This growth is closely linked to the increasing adult population in the region. Notably, states like Meghalaya, Sikkim, and Tripura, with significant tribal populations who have their traditional alcoholic beverages, are witnessing a shift towards urbanization. This urbanization among tribal communities is a key driver for the growth of the alcoholic beverage industry in the Eastern Indian market. Also, increased industrial collaboration in the region also contributes to the expansion of the alcohol industry. These factors collectively contribute to the growth of the vodka and gin market in India.

Competitive Landscape

Major players operating in the India vodka and gin market include Bombay Spirits Company LTD, Diageo India, Nao Spirits & Beverages Pvt Ltd, Radico Khaitan Limited, Bacardi Limited, Som Group of Companies, Amber Distilleries Limited, Kaya Spirits, India Glycols Limited, and Terai India Dry Gin. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In November 2023 - NV Distilleries & Breweries introduced a premium gin, Mohulo, initially targeting export markets. The company expects to sell approximately 1 lakh cases by FY24, focusing on US exports. With a turnover of INR 1,120 crore in FY23, it anticipates reaching INR 1,250–1,300 crore in the current year. This expansion aims to reduce reliance on cyclical industries, boosting overseas business to 8–10% in FY24.

• In June 2023 - Pernod Ricard India expanded its portfolio in response to the growing popularity of gin in India. They introduced several international gin brands to cater to the evolving preferences of consumers who are willing to pay a premium for new products. The company reported a 73% growth in India's gin sales, partly due to the emergence of locally crafted gins.

• In February 2023 - WATTSHOT, the world's first gin designed for shots, launched in India through its partner Amistad Spirits. WATTSHOT's partnership with Amistad Spirits, a Delhi-based distribution company, aligns with their strategy to cater to a wide demographic of Indian consumers. The move reflects WATTSHOT's ongoing expansion and aims to provide exquisite drinking experiences to the Indian market.

Scope of the Report

By Type

• Vodka

• Gin

By Distribution Channel

• Offline

• Online

By Region

• North India

• South India

• East India

• West India

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. India Vodka and Gin Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rising disposable income
         2. Changing drinking culture
      2. Restraints
         1. High taxes and complex regulations imposed by different states.
         2. Cultural and religious factors
      3. Opportunity
         1. Increase in urbanization
         2. Influence of western lifestyle
      4. Challenges
         1. Competition from other spirits
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. India Vodka and Gin Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
         1. Vodka
            1. Flavored
            2. Non-flavored
         2. Gin
      2. By Distribution Channel
         1. Offline
         2. Online
      3. By Region
         1. North India
         2. South India
         3. East India
         4. West India
5. North India Vodka and Gin Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
      2. By Distribution Channel
6. South India Vodka and Gin Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
      2. By Distribution Channel
7. East India Vodka and Gin Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
      2. By Distribution Channel
8. West India Vodka and Gin Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
      2. By Distribution Channel
9. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. India Vodka and Gin Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
10. Impact of Covid-19 on India Vodka and Gin Market
11. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
    1. Bombay Spirits Company LTD
    2. Diageo India
    3. Nao Spirits & Beverages Pvt Ltd
    4. Radico khaitan Limited
    5. Bacardi Limited
    6. Som Group of Companies
    7. Amber Distilleries Limited
    8. Kaya Spirits
    9. India Glycols Limited
    10. Terai India Dry Gin
    11. Other Prominent Players
12. Key Strategic Recommendations
13. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3.  Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.  Breakdown of Primary Research Respondents, By Region
    5.  Assumptions & Limitations

*Financial information of case of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       India Vodka and Gin Segmentation    

Figure 2       India Vodka and Gin Market Value Chain Analysis   

Figure 3       Company Market Share Analysis, 2022

Figure 4       India Vodka and Gin Market Size, By Value (USD Million), 2019–2029 

Figure 5       India Vodka and Gin Market Share, By Type, By Value, 2019–2029     

Figure 6       India Vodka and Gin Market Share, By Distribution Channel, By Value, 2019–2029         

Figure 7       North India Vodka and Gin Market Size, By Value (USD Million), 2019–2029  

Figure 8       North India Vodka and Gin Market Share, By Type, By Value, 2019–2029      

Figure 9       North India Vodka and Gin Market Share, By Distribution Channel, By Value, 2019–2029 

Figure 10     South India Vodka and Gin Market Size, By Value (USD Million), 2019–2029 

Figure 11     South India Vodka and Gin Market Share, By Type, By Value, 2019–2029     

Figure 12     South India Vodka and Gin Market Share, By Distribution Channel, By Value, 2019–2029 

Figure 13     East India Vodka and Gin Market Size, By Value (USD Million), 2019–2029    

Figure 14     East India Vodka and Gin Market Share, By Type, By Value, 2019–2029        

Figure 15     East India Vodka and Gin Market Share, By Distribution Channel, By Value, 2019–2029 

Figure 16     West India Vodka and Gin Market Size, By Value (USD Million), 2019–2029   

Figure 17     West India Vodka and Gin Market Share, By Type, By Value, 2019–2029      

Figure 18     West India Vodka and Gin Market Share, By Distribution Channel, By Value, 2019–2029 

List of Tables

Table 1        India Vodka and Gin Market Size, By Value (USD Million), 2019–2029

Table 2        India Vodka and Gin Market Size, By Type, By Value, 2019–2029

Table 3        India Vodka and Gin Market Size, By Distribution Channel, By Value, 2019–2029

Table 4        India Vodka and Gin Market Size, By Distribution Channel, By Value, 2019–2029

Table 5        North India Vodka and Gin Market Size, By Value (USD Million), 2019–2029

Table 6        North India Vodka and Gin Market Size, By Type, By Value, 2019–2029

Table 7        North India Vodka and Gin Market Size, By Distribution Channel, By Value, 2019–2029

Table 8        South India Vodka and Gin Market Size, By Value (USD Million), 2019–2029

Table 9        South India Vodka and Gin Market Size, By Type, By Value, 2019–2029

Table 10      South India Vodka and Gin Market Size, By Distribution Channel, By Value, 2019–2029

Table 11      East India Vodka and Gin Market Size, By Value (USD Million), 2019–2029

Table 12      East India Vodka and Gin Market Size, By Type, By Value, 2019–2029

Table 13      East India Vodka and Gin Market Size, By Distribution Channel, By Value, 2019–2029

Table 14      West India Vodka and Gin Market Size, By Value (USD Million), 2019–2029

Table 15      West India Vodka and Gin Market Size, By Type, By Value, 2019–2029

Table 16      West India Vodka and Gin Market Size, By Distribution Channel, By Value, 2019–2029

Table 17      Bombay Spirits Company LTD Company Overview

Table 18      Bombay Spirits Company LTD Financial Overview

Table 19      Diageo India Company Overview

Table 20      Diageo India Financial Overview

Table 21      Nao Spirits & Beverages Pvt Ltd Company Overview

Table 22      Nao Spirits & Beverages Pvt Ltd Financial Overview

Table 23      Radico khaitan Limited Company Overview

Table 24      Radico khaitan Limited Financial Overview

Table 25      Bacardi Limited Company Overview

Table 26      Bacardi Limited Financial Overview

Table 27      Som Group of Companies Company Overview

Table 28      Som Group of Companies Financial Overview

Table 29      Amber Distilleries Limited Company Overview

Table 30      Amber Distilleries Limited Financial Overview

Table 31      Kaya Spirits Company Overview

Table 32      Kaya Spirits Financial Overview

Table 33      India Glycols Limited Company Overview

Table 34      India Glycols Limited Financial Overview

Table 35      Terai India Dry Gin Company Overview

Table 36      Terai India Dry Gin Financial Overview