Alcohol Consumption On The Rise

Registering a robust growth of about 30% on a YoY basis, alcohol consumption in India will cross 19,000 million litres by 2015 from the current level of 6,700 million litres, apex industry body ASSOCHAM said on Wednesday.

India's alcoholic beverage market, comprising beer, wine and spirits, will reach over Rs 1.4 lakh crore in 2015 from the current size of about Rs. 50,700 crore, says an industry-specific analysis of The Associated Chambers Of Commerce And Industry Of India (ASSOCHAM).

A sizeable middle-class population with rising spending power, and a sound economy, are significant reasons behind the increase in consumption of alcohol in India, according ASSOCHAM's study on 'Latest Trends In Domestic Liquor Market.'

India is one of the fastest-growing alcohol markets in the world. Almost 70% of alcohol in south-east Asia is produced in India. Besides, India's contribution in total alcohol beverage imports in the region is nearly 10 per cent.

India is also the largest consumer of whiskey, which accounts for almost 80% of the entire liquor market.

Owing to India's affinity for hard liquor, the Indian whiskey market, which currently stands at around Rs. 40,500 crore, is expected to cross Rs. 54,000 crore within the next 2 years.

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

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

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

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 incomes, lack of parental supervision, changing society norms and peer pressure.

Almost 45% of 12th graders in metropolitan cities in India excessively consume alcohol. Teenage drinking has risen by a whopping 100% during the course of last 10 years, revealed the study.

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

Further, 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% of all the liquor consumed in India. The Union Territories of Chandigarh and Pondicherry also record high consumption levels, and together account for almost 65 of the liquor consumed in the country.

Nearly 15 to 20% of the liquor consumed annually is estimated to be counterfeit, causing a tax loss to state governments, and brand damage to the manufacturers. (INN)