The demand for distilled alcoholic beverages in India experienced fluctuations over the past decade, peaking in 2015 and 2018, and experiencing significant declines in 2016 and 2017. In recent years, the demand has stabilized around 2.99 million metric tons in 2021, 2022, and 2023.
Year-on-year analysis reveals notable variations in demand growth, with significant positive and negative changes, indicating market volatility. The last two years showed minimal growth of 0.1% year-on-year, suggesting a stabilization phase. The five-year CAGR for 2023 stood at -1.4%, reflecting a slight decline over a longer term.
Forecasts for 2024 to 2028 indicate a steady demand with incremental growth, achieving 3.01 million metric tons by 2028. The 5-year forecasted CAGR is positive but modest at 0.1%, with an overall forecasted growth rate of 0.48% over the period.
Future trends to watch for:
- Shift in consumer preferences due to health and wellness trends.
- Impact of regulatory changes on production and sales.
- Growth in premium and craft segment demand.
- Influence of economic factors such as disposable income and inflation.
