The alcohol industry in India is segmented into four categories: Indian Made Foreign Liquor (IMFL – essentially whiskey, gins, rums, vodkas etc made in India), Country Liquor (historically low priced drinks made from fruits, cashews, coconut, etc), Beer, and Wine.
While import duties on alcohol are quite high, there is a market for Scotch and other American, European and Japanese drinks among upscale Indians as well as in the hotel and bar business.
The hard liquor industry in India is much more widespread, with the majority of Indians choosing whiskey and rum over wine and beer. Perhaps due to their lower alcohol content, wine and beer are consumed at a lower rate. For a deeper exploration of the liquor industry in India, click here.
Beer
The beer category is mainly strong beer (with an alcohol content of at least 8%). The beer market in India has seen an increase in the demand for craft beers, with microbreweries becoming popular in urban areas. India-based United Breweries, owned by Dutch beer giant Heineken, dominates the market with Kingfisher. South-African SABMiller’s Hayward and Knockout are also popular options. While weaker beers are less common, brands such as Kingfisher provide options with lower alcohol content. Craft beer and ciders have gained traction, with a surge in the number of microbreweries offering a variety of flavors and styles. These establishments provide consumers with an alternative to mainstream beers.
Wine
While the wine industry in India is small, it has experienced substantial growth in recent years. The majority of the Indian subcontinent does not have a favorable climate to produce wine, but some areas, such as the western state of Maharashtra have an ideal climate for viticulture. 10 million Indians regularly consume wine as of 2023, according to Forbes. Prevalent Indian wines include Grover’s Zampa, Four Seasons’ Four Seasons, and Sula Vineyards’ Sula.
