India’s alcohol beverage market to grow at 6.8% in 4 years: ICRIER

According to the Indian Council for Research on International Economic Relations (ICRIER), the Indian alcoholic beverages market is expected to grow at a CAGR of 6.8% between 2020 and 2023. India is one of the fastest-growing alcoholic beverages markets globally, with an estimated market size of $52.5 billion in 2020.

Covid-19 pandemic and in-home consumption have hastened premiumisation in the alcoholic beverage (alcobev) sector and companies are moving in to cash in on the ready-to-drink (RTD) segment with a spate of launches.

Speaking to Financial Express, Vinod Giri, director general of Confederation of Indian Alcoholic Beverage Companies (India), the representative body of Indian alcohol beverage companies, said that premium launches in the RTD (ready-to-drink) segment are a healthy sign of market progression. “We are witnessing a spate of innovations in the Indian alcoholic beverage market,” he added.

American whiskey major, Jack Daniel’s recently launched its RTD brand Jack & Cola in India. According to the company, Jack & Cola is often cited as the world’s most popular branded bar calls and with convenience being the main driver, the RTD format has been growing at an exceptional rate globally and was the fastest-growing brand for Brown-Forman during the last financial year.

Jack & Cola RTD was introduced after considerable consumer research by the company, in which they saw encouraging consumer trends concerning the accelerated growth in the cocktail culture, enhanced consumer repertoire to try new formats and whiskey-based drinks. Jack Daniel’s RTDs enable affordability and makes the trademark more accessible by making it relevant to newer occasions where the full-strength whiskey may not be most relevant.  The recent lockdowns have allowed the consumers to explore their interest in their drinks in greater detail, and a much-awaited push to this category.

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