Liquor consumption is expected to treble to 20,000 million litres in three years, against 7,000 million litres being guzzled at present, according to a study by Assocham.
In terms of revenue, the alcoholic beverage market will touch Rs 2 lakh-crore from Rs 52,000 crore logged now.
Liquor sales in Tier II and tier III cities are expected to grow sharply as companies focus on retail channels such as bars, restaurants and pub joints across these towns. Huge investments are being made to improve infrastructure, supply chain and bottling facilities in these places. This will also open new employment avenues, said the study.
Imported spirits
The sales of imported spirits, including the duty-free travel trade in India, is likely to cross five million cases mark and reach about 550 lakh litres by 2015.
The imported spirits market in India is at present estimated at about 280 lakh litres and about 3.1 million cases. “Growth of imported spirits in India is driven by the spurt in tendency amid young professionals to migrate from local brands to international brands,” said Mr D. S. Rawat, Secretary-General of Assocham.
Market for imported liquor will witness an increase in foreign brands if the stiff regulatory environment together with State levies and high import duties on imported spirits are relaxed, said the study.
Sales of imported liquor are rising rapidly, despite threat from counterfeit spirits. Wine consumption in India may touch 14.7 million litres by the end of this year from 4.6 million litres in 2008, said Assocham.
The wine market is likely to touch Rs 2,700 crore by end of this year from Rs 800 crore registered in 2008.
The vodka market in India is growing at about 25 per cent annually and is likely to reach about 10.2 million cases by this year end as vodka is emerging as a starting drink of choice for the youth at metros and Tier II centres, said Assocham.