A presentation explaining the briefs of alcohol industry, their market share, growth, demands, and competition among different brands in India

1. THE ALCOHOL INDUSTRY
BY:
ANJALI GULANI
SOUMYAJIT DUTTA
VARNIKA TALWAR
YAMINI CHHATWANI

2. CONTENTS
• Introduction
• Market Scenario
• Needs/Wants
• Demands
• Growth Rate
• Market Penetration
• Competition Intensity
• Market Share

3. INTRODUCTION…
• Indian alcohol industry is the third largest alcohol industry in the world, behind China
and Russia.
• India’s alcoholic beverage market has grown steadily in the last 5 years.
• Indian liquor industry can be broadly classified in the below two types:
 Indian Made Foreign Liquor (IMFL)
 Country Made Liquor

4. MARKET SCENARIO
• UB Group and Shaw Wallace Group enjoy a combined market share of 55% in IMFL and
70% in beer.
• UB Group is larger with 37% share in IMFL and 53% share in beer.

5. INDUSTRY STRUCTURE
Source: Researchjournal.com

6. DEMANDS
• Potential Drinkers: Around 485 million are currently under drinking age.
• Actual Drinkers: 30% of India’s population i.e. 393 million.
Source: Researchjournal.com

7. REASONS FOR INCREASE IN DEMAND
• Increase in personal disposable income.
• Favorable demographics.
• Changing social acceptance.
• Increased alcohol accessibility and availability.
• Urbanization.
• Growing prominence of ‘Pub and Cocktail culture’.

8. GROWTH RATE
• Indian liquor industry is growing at the rate of 11.9%.
• The industry saw sales of 23.47 million cases in 2016, down from 29.69 million cases
a year ago.
Source: NCAER, BW Marketing Handbook

9. 45
38
48
54
7 8
2001 2011
INDIAN SPIRITS INDUSTRY GROWTH
DRIVERS
0-19 20-60 >60
20112001
Age Profile
Source: NCAER, BW Marketing Handbook
Large increase projected in emerging
and regular customers

11. 0
5
10
15
Category 1 Category 2 Category 3 Category 4
Chart Title
Series 1 Series 2 Series 3
MARKET PENETRATION
Market Penetration = Sales( Current)/Potential Sales*100
• According to WHO report, 30% of Indians consume alcohol, out of which, 4-13% are
daily consumers and up to 50% of these fall under the category of hazardous
drinking.
• List of major alcohol brands in India:
• Officer’s Choice
• Bagpiper
• Imperial Blue
• Blender’s Pride
• McDowell’s
• Royal Stag

13. COMPETITION INTENSITY
United Brewries
53%
SABMiller
27%
Carlsberg
6%
Mohan Meakin
4%
Others
10%
Indian Beer Market Share
United Brewries SABMiller Carlsberg Mohan Meakin Others
• Kingfisher has the maximum share among all
the brands, amounting to 88.3%.
• Kingfisher Ultra crossed 1.42 million cases
sales in FY15 and commands a market share of
3.1% in super premium category.
• Heineken is the fastest growing brand.
Source: Financial Express

14. MARKET SHARE…
Market Share = Sales of company A in T period
Total sales of industry in T period
37%
47%
13%
3%
IMFL
Country Liquor
Beer
Imported Liquor
Source: kenresearch.com/india-alcoholic-beverages-
industry-research-report

15. Sales
Whiskey Brandy Rum White Spirits
COMPOSITION OF IMFL
Source: crisil.com
60%
14%
24%
2%
Whiskey Brandy Rum White Spirits

16. THANK YOU !!