Indian booze lovers becoming quality conscious

Indian alcoholic beverages consumers are becoming more quality conscious rather than staying price-sensitive, a joint study by Indian Council for Research on International Economic Relations (ICRIER) and solicitor firm PLR Chambers recent study has found. New trend attributed to the growing urbanisation and rising income levels in India.

With increasing international travels and exposure to foreign brands, their behaviour change is reflected in their purchase choices, which makes India an attractive market for global manufacturers and retailers, the new study underlined.

The data also demonstrates that by 2030, while 50 percent of the consumers would buy more of the same category of alcoholic beverages that they are consuming, 26 percent are expected to move to higher brands and 24 percent will spend on newer categories of alcohol. A wrong policy may push consumers towards lower quality products, and illicit markets may cause health hazards and reduce revenues, it cautioned.

The country is one of the fastest-growing markets for alcoholic beverages, with an estimated market size of USD 52.5 billion, and it is expected to grow at a CAGR (compound annual growth rate) of 6.8 percent between 2020 and 2023, according to the study.