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With increasing urbanization and rising income levels, Indian consumers of alcoholic beverages are increasingly quality conscious rather than price sensitive, according to a recent study.

With increasing international travel and exposure to foreign brands, their change in behavior is reflected in their purchasing choices, making India an attractive market for global manufacturers and retailers, the joint study from the Indian Council for International Economic Relations Research (ICRIER) and the law firm said PLR Chambers.

According to the study, the country is one of the fastest growing alcoholic beverage markets, with an estimated market size of USD 52.5 billion, and it is expected to grow at a CAGR (compound annual growth rate) by 6.8% between 2020 and 2023.

While this data does not capture the size of the informal or illicit alcoholic beverage market, it does provide instructions for state excise services to plan their income projections based on consumption demand, he said.

Data also shows that by 2030, while 50 percent of consumers would buy more of the same category of alcoholic beverages they consume, 26 percent are expected to switch to higher brands and 24 percent will spend on new categories. drinks. alcohol.

In India, the judicious use of consumer purchasing data to design tax rates has been a rarity in the past.

A lack of organized data collection and collation has led to ad hoc and unaligned changes in excise policies.

Recently, various states have taken bold steps to see the impact of policy changes on consumption and revenue collection. In the case of West Bengal, a downward alignment of previously increased excise taxes on foreign alcohol made in India (IMFL) allows consumers to access better quality products, according to the study.

Bad policy can push consumers towards substandard products, and illicit markets can pose health risks and reduce income, he warned.

Sushmita Mukherjee, assistant secretary of West Bengal Foreign Liquor, Country Spirits, ON, OF Shops and Hotels Owners’ Association, told PTI that the impact of the price reduction is evident in the sales surge in the state.

Although December is a festive season and sales are generally higher, lower prices have helped increase consumption, she said.

According to a recent report by Allied Market Research, the size of the Indian home automation market was valued at $ 1.79 billion in 2018 and is expected to reach $ 13.5 billion by 2026, with a CAGR of 29.8 % during the forecast period …

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