Liquor consumption in India to jump 30%

A sizeable middle class population with rising spending power and a sound economy are some significant reasons behind the increase in consumption of alcohol in India,according to an Assocham study on the ‘Latest Trends in Domestic Liquor Market’.

India is one of the fastest growing alcohol markets in the world and the largest consumer of whiskey,which accounts for almost 80 per cent of the entire liquor market. Owing to India’s affinity for hard liquor,the size of whiskey market,currently worth around Rs 40,500 crore,is expected to cross the Rs 54,000 crore-mark within the next two years,it said.

“But with the number of youngsters and income levels on the rise,popularity of beer made from malt is increasing and is expected to reach 2.4 billion litres by 2012,” said the Assocham study.

The Indian liquor market,which is divided into various categories like IMFL (Indian-made foreign liquor),imported liquor,domestic liquor and country-made liquor,is brimming with growth. Of late,consumers have developed a fondness for imported liquor and the market is crowded with foreign brands.

Awareness of the health benefits associated with moderate drinking is another significant factor behind this upsurge as nowadays,more Indians are adopting a healthy lifestyle,according to the study.

Urbanisation,together with ever-changing social norms,increased alcohol availability,high intensity marketing and relaxation of overseas trade rules have equally contributed to increased alcohol consumption,according to the Assocham study.

A significant but worrisome reason for increased liquor consumption is that boys and girls in their youth are resorting to drinking at a young age due to high disposable income,lack of parental supervision,changing society norms and peer pressure.

Almost 45 per cent of 12th graders in metropolitan cities in India excessively consume alcohol and teenage drinking has risen by a whopping 100 per cent during the course of the last 10 years,revealed the survey.

India ranks as one of largest alcoholic beverage markets across the globe,considering that almost 70 per cent of alcohol in South-East Asia is produced in India. India’s share of total alcohol beverage imports in the region is nearly 10 per cent.

Kerala and Punjab are the leading liquor consuming states in India,with Kerala alone accounting for 16 per cent and Punjab 14 per cent of all liquor consumed in India.

Behind them,states like Andhra Pradesh,Haryana,Himachal Pradesh,Karnataka,Rajasthan,Tamil Nadu and West Bengal are leading liquor-consuming states,in that order,accounting for 40 per cent of all the liquor consumed in India.

The Union Territories of Chandigarh and Pondicherry also record high consumption levels and together account for almost 6 per cent of the liquor consumed across India.

Nearly 15 to 20 per cent of the liquor consumed annually is estimated to be counterfeit,causing a tax loss to state governments and brand reputation damage to the manufacturers,as per the study.