The Indian alcohol market was worth INR 2,807,236.7 billion in 2018 and is expected to be worth INR 5,482,851.3 billion by the end of 2027, expanding at a 7.8 percent CAGR during the forecast period (2019 to 2027).
Alcohol is chemically known as ethanol or ethyl alcohol, and it is mostly found in wine, beer, and spirits that cause intoxication. The fermentation of yeast results in the production of alcohol. Wine, for example, is made from the sugar in grapes; similarly, beer, cider, and vodka are made from the sugar in malted barley, apples, and potatoes, respectively. Alcohol is characterized as a sedative-hypnotic depressant of the central nervous system.
Another key reason predicted to boost the alcohol industry is a shift in demography combined with a shift in lifestyle. The legal drinking age in India varies by state. For example, Goa, Uttar Pradesh, and Karnataka have 18 years, Tamil Nadu and Andhra Pradesh have 21, while Maharashtra, Delhi, and Punjab have 25. As a result of the aforementioned data, India appears to be suitable for the rapid expansion of the alcohol business.
Alcohol market growth is expected to be hindered by government rules and regulations due to the rise in accidental alcohol-related deaths.
The increased application of VAT, severe excise tax, and government controls is projected to diminish alcohol demand. For example, governments all around the world levy taxes on alcoholic beverages and associated items. They also have control over and regulate sales. Market Possibilities