Crafting India's Spirits: The AlcoBev Industry's Premiumization Journey

India's AlcoBev industry is evolving, driven by premiumization and craft beverages, despite rising input costs. Market valuation is projected to hit $200 billion by 2025 and $300 billion by 2035. Brands focus on quality experiences, with microbreweries leading innovation. Tourism integration boosts global expansion, though profitability challenges remain.

In New Delhi, the Indian AlcoBev industry stands at a pivotal juncture. On one side, the surge in premium spirits and craft drinks is meeting rising consumer demands for flavorful and high-quality beverages. On the other, escalating input costs are challenging profitability. Sameer Mahandru, a key expert, emphasizes these industry dynamics.

Industry forecasts suggest the Indian alcohol market will grow substantially, with valuations reaching $200 billion by 2025 and expanding to $300 billion by 2035 at a 7.2% annual growth rate. However, the path forward is fraught with challenges, particularly in balancing premiumization with rising production costs.

Microbreweries and craft distilleries are pioneering the premiumization trend, attracting consumers who value unique drinking experiences. With 'Make in India' gaining traction, Indian spirits are gaining ground globally, aided by the integration of tourism, fostering both domestic and international brand engagement.

(With inputs from agencies.)