2024
0
India Spirits Market Report 2024
2024-06-20T15:03:39+01:00
REP7EA803DE_5119_41C4_8D85_2789B3152117
2195
173869
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Report
en_GB
The Indian alcohol market is undergoing significant evolution. The rise of premiumisation, a demand for superior experiences and the experimental mindset of the younger generation are key drivers of change…

India Spirits Market Report 2024

£ 2,195 (Excl.Tax)

Report Summary

The Indian alcohol market is undergoing significant evolution. The rise of premiumisation, a demand for superior experiences and the experimental mindset of the younger generation are key drivers of change in this category.

This report focuses on engaging 25-34 year old consumers and explores various consumption frequency segments (frequent, regular, and infrequent) alongside repertoire-based segments (loyalists, dualists, and experimentalists). It underscores the importance of a segmented approach for spirits brands to unlock growth in the Indian market.

Additionally, this report examines critical features and cues for premiumisation and identifies the potential innovation for ready-to-drink (RTD) spirits in India.

This report looks at the following areas:

  • Consumption of different types of alcoholic beverages in the last six months; repertoire based on consumption
  • Frequency of consumption; identifying frequent, regular and infrequent spirit consumers
  • Types of alcohol and attribute association (Correspondence Analysis)
  • Key features for driving premiumisation in spirits
  • Identification of consumer segment interested in trying RTD alcohol; innovations of interest in RTD alcohol
  • Three key trends in alcohol industry

Craft distinct consumer associations for different types of spirits. Premiumise with multisensorial cues and provenance. Appeal to the youth with RTD innovations.

Tulsi Joshi, Senior Food & Drink Analyst, India

Market Definitions

This report defines spirits as whiskey/whisky (blended/single malt), rum, vodka, gin, tequila, cocktails and soju.

It excludes cream liqueurs and non-cream liqueurs eg fruit liqueurs, herbal liqueurs, nut liqueurs, beer, wine and country/locally-made liquor.

Table of Contents

  1. executive summary

    • What you need to know
    • Key issues covered in this Report
    • Overview
    • Capture the imagination of experimental 25-34 year olds
    • Target 25-34 year olds by…
    • Craft distinct identities for each spirit type
    • Take a segmented approach to premiumisation
    • Premiumise by providing superior multisensory features and honing in on the provenance story
    • Harness the RTD opportunity with classic soda, juice, cocktail and combination alcohol offerings
    • Keep it classic: offer RTD spirits with plain soda or cola
    • Graph 1: % of consumers who would like to try alcohol with select types of soda/carbonated drinks in RTD alcohol, by spirits consumers, 2024
    • Target the sober-curious segment of Gen Z with low- and no- RTD alcohol
    • Mintel predicts
    • The outlook for spirits in India, 2024
  2. Key trends

    • What you need to know
    • Demand for novel experiences paves the way for premiumisation
    • Indians value experiences
    • Novel is the new premium, especially for metro dwellers
    • Graph 2: top descriptions that best describe premium products (any rank), by city tier, 2022
    • The trend of premiumisation in alcohol mirrors the growing demand for experiential innovations
    • Global alcohol brands are bringing adventurous flavours to address consumers' need for novelty
    • Drink with your eyes
    • The emergence of mixology
    • Meet BarGPT AI
    • The soaring localism fever
    • Government initiatives to amp up localism and self-reliance
    • Localism fever soars
    • Brands are increasingly taking the localism route to drive premiumisation
    • Graph 3: product launches with 'local' search results and 'premium', 'limited edition' and 'novel' claims, 2018-23
    • Indian distillers are increasingly capturing local market and global attention
    • The NoLo movement
    • Sober-curious garners attention globally
    • Mintel Leap: NoLo movement
    • Japanese breweries are exploring ways to attract the sober-curious younger generation
    • New launch alert: Sober spirits in India
    • No-alcohol beverages are broadening their horizons by cleverly tapping into consumption occasions
  3. WHAT CONSUMERs WANT AND WHY

    • What you need to know
    • Beer is the most popular alcohol type; spirits are catching up with whiskey leading the pack
    • Graph 4: types of alcohol consumed in the last six months, 2024
    • Graph 5: types of alcohol consumed in the last six months, by spirits consumers, 2024
    • Beer's popularity declines with age; 25-34 year olds are key targets for spirits
    • Graph 6: % of consumers who drank select alcohol in the last six months, by age group, 2024
    • Graph 7: % of consumers who drank select alcohol in the last six months, by age group, 2024
    • Social media buzz around spirits is soaring, with positive sentiments
    • Whiskey is the spirit that older men and urbanites can't resist; blended charms twice as many as single malts
    • Graph 8: select types of alcohol consumed in the last six months, 2024
    • Graph 9: % of consumers who drank whiskey (blended/single malt) in the last six months, by city tier, 2024
    • Rum: not just a pirate's choice but a preferred liquid courage among Tier-2 city dwellers and those currently in a financially tight situation
    • Graph 10: % of alcohol consumers who consumed 'rum' in the last six months, by city tier, 2024
    • Graph 11: % of alcohol consumers who consumed 'rum' in the last six months, by current financial situation, 2024
    • Vodka: the preferred tipple for career-driven women to transform office gossip into delightful post-work gatherings
    • Graph 12: types of alcohol consumed in the last six months, by employment and gender, 2024
    • Say annyeonghaseyo to soju
    • Identifying consumption-based consumer segments
    • Majority of spirits drinkers display a strong loyalty toward a single type of spirit
    • Graph 13: repertoire of types of spirits consumed in the last six months, 2024
    • Meet the Loyalist
    • Meet the Dualist
    • Meet the Experimentalist
    • Ride on whiskey's popularity to increase adoption of other spirits
    • Graph 14: types of spirits consumed in the last six months, by repertoire-based consumer segments, 2024
    • Induce trials for gin, vodka, rum and tequila with whiskey in variety bundle packs
    • RTD spirits innovate with variety packs targeting all-day and evening occasions
    • Consumption frequency of spirits
    • A third of spirit consumers are frequent drinkers
    • Graph 15: frequency of alcohol consumption in the last six months, by select consumer segments, 2024
    • Frequent consumers: demographic profile
    • Regular consumers: demographic profile
    • Infrequent consumer: demographic profile
    • Majority of spirits drinkers maintain steady alcohol intake over past year
    • Graph 16: alcohol consumption change, compared to a year ago, by spirits consumers, 2024
    • Graph 17: % of consumers who consumed more alcohol, compared to a year ago, by spirits vs non-spirits consumers, 2024
    • Capture the experimental 25-34 year olds
    • Strategic spotlight: capitalise on 25-34 year olds' growing taste for spirits
    • Four routes to target 25-34 year olds
    • Post Malone and Jägermeister elevate club vibes for your tribe
    • Build relatable content for young adults
    • Break the age-old construct of whiskey being for older age
    • Highlight consumption occasions for men aged 25-34 with sporting events
    • Drive engagement and brand loyalty among women aged 25-34 with strategic celebrity partnerships
    • Suga from BTS hosts candid conversations over drinks
    • Gaming is no more a child's play; tap into the gaming boom
    • Harness CGI technology to create unforgettable and memorable experiences
    • The missing association factor
    • Spirits lacks clear positioning in the minds of consumers
    • Correspondence analysis and how to interpret the chart
    • Unlock the potential of whiskey, gin and tequila by establishing clear identities
    • Make whiskey the choice for celebrations
    • Compete with beer by leveraging whiskey's strong association with socialising with friends
    • Target mature whiskey drinkers with socialising
    • Varying routes to premiumisation
    • Ride the premiumisation wave by elevating sensorial indulgence and spotlighting provenance
    • Graph 18: features consumers are willing to pay more for in alcoholic drinks, 2024
    • One offering can't fit all: every segment has a distinct premiumisation preference
    • Premiumisation cues differ city tier to city tier
    • Build on multisensory cues to enhance the consumption experience
    • Recruit the younger generation with milder aromas
    • Graph 19: % of consumers who are willing to pay more for 'milder alcohol aroma' in alcoholic drinks, by age, 2024
    • Subtly luxurious: premium spirits with a milder aroma
    • Indian origin wins with frequent consumers, foreign appeals to infrequent ones
    • Graph 20: % of consumers who are willing to pay more for 'foreign origin' in alcoholic drinks, 2024
    • Graph 21: % of consumers who are willing to pay more for 'Indian origin' in alcoholic drinks, 2024
    • Indian brands get increasingly vocal with localism narrative
    • Graph 22: sub-total share of spirits launches that contain "made in India" or "Indian" or "India made" in product descriptions, 2021-23
    • Craft a 'premium and proudly made in India' story
    • Boldly highlight Indian origin to appeal to regular consumers
    • Origin story is going hyperlocal
    • Older Millennials prefer foreign origin over Indian origin
    • Graph 23: % of consumers who are willing to pay more for 'foreign origin' in alcoholic drinks, by generation, 2024
    • Graph 24: % of consumers who are willing to pay more for select features in alcoholic drinks, by select generation, 2024
    • Hone legacy, tradition, exclusivity and provenance of foreign origin spirits
    • Make your front of pack do the smooth-talking for you!
    • Jameson (humorously) plays up "smooth"
    • Give a flavour twist to appeal to rum consumers
    • Graph 25: % of consumers who are willing to pay more for 'innovative flavour' in alcholic drinks, by select spirit consumers, 2024
    • Glenlivet unveils 'Twist & Mix' Packaging for easy cocktail flavours
    • Status quo of dark rum: unflavoured/plain continues to reign globally and in India; ample room for flavour innovations
    • Graph 26: top three flavour launches in dark rum, 2021-24
    • Graph 27: top three flavour launches in dark rum, 2021-24
    • Chocolate, citrus and spice flavours are trending globally in dark rum
    • Interpreting the map
    • Dark rum: experiment with spice and citrus flavours
    • Status quo of white rum: stand out with flavour innovations as nearly two thirds of launches are plain/unflavoured; lemon is mainstream in India
    • Graph 28: top three flavour launches in white rum, 2021-24
    • Graph 29: top three flavour launches in white rum, 2021-24
    • Exotic fruits, ginger and sweet and spice flavours are trending globally in white rum
    • Give a fruitful and gingery punch to white rum
    • Limited-edition inspired by artists/web series/movies can appeal to Experimentalists and gin drinkers
    • Graph 30: % of consumers willing to pay more for select feature in alcoholic drinks, by consumer segments, 2024
    • Graph 31: % of consumers willing to pay more for select feature in alcoholic drinks, by select spirit consumers, 2024
    • Use the power of celebrities and pop-culture to premiumise spirits with limited edition packs
    • Catch the latest trends with contemporary icons and influencers
    • D'Yavol featuring Shahrukh and Aryan Khan
    • The RTD opportunity
    • Seize the moment: time is ripe for launching RTD alcohol in India
    • Graph 32: % of launches of select sub-category in alcoholic beverages, 2019-24
    • Graph 33: % of launches of 'flavoured alcoholic beverages' in alcohol beverages, 2019-24
    • Indian spirits consumers cheers to RTD format
    • Graph 34: interest in trying alcoholic drinks in packaged RTD format, 2024
    • Graph 35: interest in trying alcoholic drinks in packaged RTD format, by consumer segments, 2024
    • Who should be target segment for RTD alcohol?
    • Appeal to Gen Z with small batches, trendy limited-edition RTD alcohol
    • Graph 36: features consumers are willing to pay more for in alcoholic drinks, by select generation who are very interested in trying RTD alcohol, 2024
    • Dr. Dre and Snoop Dogg's Gin & Juice-inspired Gin & Juice
    • Introduce RTD spirits with the classic soda mix
    • Graph 37: interest in trying types of packaged RTD alcohol, by spirits consumers, 2024
    • RTD alcohol with plain soda or cola can appeal to majority of spirits consumers
    • Graph 38: % of consumers who would like to try alcohol with select types of soda/carbonated drinks in RTD alcohol, by spirits consumers, 2024
    • Introduce RTD alcohol with the classic mix of plain soda or cola
    • Innovative beer-spirits blend to recruit beer drinkers
    • Graph 39: % of alcohol consumers who would like to try 'combination of different alcohol' in packaged RTD format, by consumer segments, 2024
    • Harness the RTD opportunity with classic soda, juice, cocktail and combination alcohol offerings
    • Recruit beer drinkers with beer + spirits mix in RTD format
    • Local news: Indri and Amrut innovate whiskey combined with other alcohol
    • Juice, infuse!
    • Premiumisation opportunity with RTD cocktails
    • Graph 40: top five cocktails of interest in RTD alcohol, by select segment, 2024
    • Graph 41: % of spirit consumers who are interested in trying 'cocktail' in RTD alcohol, socio-economic class, 2024
    • Cocktail in a can: craft cocktails for the elite
    • Offer bar-quality canned cocktails
    • Opportunity exists for both low- and no-alcohol RTDs
    • Graph 42: interest in trying select types of RTD alcohol, by select generation who is very interested in trying RTD alcohol, 2024
    • Bacardi, Bombay Sapphire and Schweppes enter the low alcohol RTD category
    • Lidl gives a cool quotient to its"cocktail type" low alcohol RTD
    • Global brands are taking a BFY route for low/no RTD alcohol
    • Target infrequent consumers with zero-alcohol RTDs
    • Graph 43: % of consumers who are interested in trying 'no/zero alcohol content RTD drinks', by select frequency-based consumer segments, 2024
    • Offer non-alcoholic cocktails without compromising on taste and experience
  4. APPENDIX

    • Report definition
    • Consumer survey methodology
    • Repertoire analysis
    • Correspondence Analysis

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