||Imported spirits’ sales to cross five million cases by 2015: ASSOCHAM
New Delhi: The sales of imported spirits including the duty-free travel trade in India is likely to cross five million cases mark and reach about 550 lakh litres by 2015, apex industry body ASSOCHAM said today.
Growing at a compounded annual growth rate (CAGR) of about 25 per cent, the imported spirits market in India is currently estimated at about 280 lakh litres and about 3.1 million cases, according to a study titled, ‘India’s emerging imported spirits market,’ released by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
“Growth of imported spirits in India is largely driven by the spurt in tendency amid young Indian professionals and entrepreneurs to migrate from local brands to international brands,” said Mr D.S. Rawat, secretary general of ASSOCHAM while releasing the findings of the study.
“With more number of Indians travelling abroad for studying and other professional reasons, their fondness for imported liquor is also rising which is certainly leading to growth in the business as they acquire taste for imported liquor and can afford to buy the expensive spirits from duty-free shops abroad,” said Mr Rawat. “Besides, growth in the sector has also been fueled by rising income levels, increasing young population, growing number of working women, increasing media penetration and expanding exposure to western lifestyle amid people in the upper-middle income group in India for whom serving expensive liquor reflects their lifestyle and status symbol.”
Market for imported liquor has huge scope for growth in India and we can witness a dramatic increase in foreign brands if the stiff regulatory environment together with state levies and high import tariff on imported spirits sold through retail stores and bars across states in India is relaxed to some extent, highlights the ASSOCHAM study.
Citing India as one the most significant growth drivers, various multinational liquor companies are likely to invest hugely in marketing, brand innovations, expand to new markets within India and are managing their portfolio as per the local needs.
We are likely to witness accelerated levels of growth in sales of liquor in tier II and tier III cities as companies are focusing on retail channels like bars, restaurants and pub joints across these towns apart from huge investments in infrastructure, supply chain, bottling facilities etc. which will also open employment avenues, according to the study.
Sales of imported liquor are rising rapidly despite of constant threat from counterfeit spirits which have been trying hard to dent the growth of the market in India.
According to ASSOCHAM the overall liquor consumption in India is growing at about 30 per cent CAGR and is likely to reach about 20,000 million litres by next three years from current level of about 7,000 million litres.
Besides, in terms of revenue the alcoholic beverage market is currently estimated at about Rs 52,000 crore and is likely to reach about Rs two lakh crore during the course of next three years, said ASSOCHAM.
Wine consumption in India is likely to reach around 14.7 million litres (in volume terms) by the end of 2012 from around 4.6 million litres in 2008 registering a growth of 35 per cent during the course of past 4 years, according to ASSOCHAM.
According to the ASSOCHAM, the Indian wine market (in value terms) stood at Rs. 800 crore as in 2008 is likely to touch Rs. 2700 crore mark by the end of this year.
The vodka market in India is growing at about 25 per cent annually and is likely to reach about 10.2 million cases by the end of 2012 as vodka is emerging as a starting drink of choice for the youth at metros and tier II centres, according to the ASSOCHAM.
Source : orissadiary.com