Home > Alcoholic Beverages, Sugar > Changing Indian Lifestyles: Alcoholic Beverage Industry in India poised for growth

Changing Indian Lifestyles: Alcoholic Beverage Industry in India poised for growth

The Alcoholic Beverage Industry in India includes mainly 4 types of beverages: Beer, Wine, Rectified Spirit and Country Liquor.

A look at the sales of the companies forming a part of this industry reflected a double-digit growth in the past financial year (FY 2009-10). However, high input costs dented profits of these companies. The key raw material used by this industry is molasses (a by-product of sugar). Price of molasses surged last year due to shortage of sugarcane and a consequent rise in its price (Is sugar getting too sweet?).  Other raw materials such as Barley and Glass–used for bottling liquor, also recorded a year-on-year rise in price. However, the industry managed to post a healthy growth in profits as well.

While this was about financial performance, I would like to highlight one fact the beer & other alcoholic production numbers released by CSO are under-estimates. A compilation of production figures by CMIE (details gathered from companies annual reports) reflects this fact. Thus, the alcoholic beverage industry is growing at a much faster pace than what government estimates show. And looking at the changing lifestyle, preferences and incomes of the Indian youth, this industry is surely poised for growth.

While I keep wondering why people in India are not avid wine-drinkers, I came across an informative article on the Indian Wine Industry. Read

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Categories: Alcoholic Beverages, Sugar
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