INDIA GIN MARKET ANALYSIS

India Gin Market Size and Trends

The India gin market is estimated to be valued at USD 1,666.3 Mn in 2024 and is expected to reach USD 2,710.9 Mn by 2031, exhibiting a compound annual growth rate (CAGR) of 7.2% from 2024 to 2031.

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The India gin market has been witnessing significant growth over the past few years. The rising number of craft distilleries in the country producing premium and super-premium gin variants is contributing to the growth of the market. Moreover, the growing culture of socializing and partying at bars and nightclubs has increased the consumption of gin. Changing consumer preferences towards premium spirits is further expected to drive the growth of the India gin market over the forecast period. The market players are also launching innovative gin flavors infused with Indian herbs and spices to capitalize on the growing demand and attract local consumers. However, the availability of substitute alcoholic beverages and certain health risks associated with excessive consumption of alcohol may hinder the market growth.

The Growth of Mixology Culture in Urban Areas

The consumption of gin has been increasingly aided by the rise of mixology culture, especially in major urban areas across India. Young urban professionals have developed a strong interest in novel cocktails and novel experiences at high-end bars and lounges. Bartenders especially in cities like Delhi, Mumbai, Bangalore, Chennai, etc. have become minor celebrities with long queues outside newly established bars and lounges to sample their creative gin-based cocktails. Social media has further fueled this phenomenon with pictures and reviews of different gin cocktails trending widely. More and more home bars have also come up in recent years with preferences shifting towards premium gins and unique ingredients for cocktails. Consumers want to break from regular pegs and are willing to experiment new flavors. Premiumization has become a key underlying trend with people scouting for craft and artisanal bottles of gin. Mixologists have played a vital role in familiarizing people with different gin brands and varieties through their cocktail innovations and recommendations. This exposure to high-end experiences is translating into regular gin purchases as the culture spreads to smaller towns and cities as well.

Market Concentration and Competitive Landscape

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Increasing Female Participation in Bars and Lounges

There is a significant increase noticed in the number of women freely socializing and relaxing at bars, pubs and lounges. This has opened up gin's potential consumer base manifolds. Earlier perceived as a male-dominated drinking space, bars are now frequented equally by women independently or in social groups. Safety concerns have reduced considerably as ambiance and service standards at such establishments rose up in the recent past. Women's increasing financial independence has also meant higher disposable incomes which they are comfortable spending on premium beverages and experiences outside homes. Alcohol companies along with bars have successfully marketed gin-based cocktails to appeal equally to female tastes whilst also addressing health and wellness dimensions. Live music, theme nights, and innovative menus have made bars an exciting hangout place for women too. Greater participation and representation of women bodes well for the India gin market to expand its footprint.

Key Takeaways from Analyst:

The India gin market is poised to grow at a rapid pace owing to rising income levels and changing lifestyle and consumption patterns among urban consumers. Young adults and millennials in big cities have developed a taste for premium spirits and are driving growth in the premium and super premium segments.

Easy availability of different gin flavors and innovations like flavored gin are resonating well with the experimental youth. Rising social acceptance of alcohol consumption in public places is also supporting the consumption of gin-based cocktails.

Stringent regulations around marketing and advertisement also restrict brand building efforts.

Market Challenges: Regulations on advertsing

The India gin market has experienced steady growth over the past decade as consumption of spirits has increased across the country. However, stringent regulations on advertising and promotion of alcohol products have created several roadblocks for gin brands looking to expand their reach. The laws introduced by the country's alcohol regulators severely limit how gin companies are able to promote and market their products both online and offline. This includes restrictions on outdoor and print advertising, as well as controls over sponsorships and promotional activities. With little opportunity for brand building and consumer education about gin varieties and flavors, it has been challenging for new entrants to gain market share.

Market Opportunities: Untapped rural markets

Untapped rural markets present a huge opportunity for growth in the Indian gin market. While gin consumption in metro cities is rising steadily among younger consumers, the rural markets still remain largely untapped. India has a massive rural population of over 800 million people spread across small towns and villages. However, gin penetration is currently quite low in rural India as compared to urban areas.

Most gin companies today focus their marketing and distribution efforts only around tier 1 and tier 2 cities, while neglecting the rural pockets which make up over 60% of India's population. Rural youth are increasingly getting exposed to global mixology trends through digital/social media and are open to trying new drinks. At the same time, their purchasing power has risen in recent years backed by higher farm incomes and government welfare schemes. According to the Ministry of Agriculture's 2022 annual report, rural farm incomes rose by over 10% annually during 2020-2022 period due to good monsoon rains and increased minimum support prices.

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Insights by Type: Traditional Taste and Versatility are Driving London Dry Gin Consumption

In terms of type, London Dry Gin is expected to contribute 38.8% share of the market in 2024, owing to its traditional taste and versatility. London Dry Gin has the cleanest and crispest flavor profile compared to other gin varieties. It derives its taste from juniper berries while also incorporating subtle hints from other botanicals. The traditional taste appeals to gin connoisseurs as well as casual drinkers in India. London Dry Gin can be consumed neat or with ice as a cocktail ingredient. It mixes well in classic gin cocktails like Gin & Tonic, Martini and Gimlet. The versatility of London Dry Gin makes it a popular choice for everyday drinking as well as social gatherings and parties. The classic taste is also attracting younger demographic who prefer authentic experiences over exotic or unusual flavors. Leading brands like Bombay Sapphire, Gordon's Export, and Tanqueray have established London Dry Gin as the quintessential gin style in India over the decades through extensive marketing and brand building. This has solidified its leadership position among gin varieties in the country.

Insights by Price Range: Socializing and Celebrations are Boosting Mid-range Gin Consumption

In terms of price range, mid-range gin is expected to contribute 43.4% share of the market in 2024, owing to rising socialization and celebratory occasions. Young professionals and urban socialites frequent bars, pubs and lounges for socializing and cocktails. Mid-range gins priced between premium and economy segments are affordable enough for regular consumption in establishments without blowing the budget. They offer satisfactory quality and standardized taste profiles required in mixed drinks. Additionally, social events like house parties, kitty parties, and festivities see increased consumption of alcoholic beverages especially cocktails. Mid-range gin fits the bill as a celebratory drink whose affordable price doesn't dampen the festive spirit. Established brands across different international distilleries have adequate availability of reasonably priced gin offerings to tap these thriving mid-market opportunities. Improving disposable incomes have also made mid-range spirits an attainable luxury especially for first-time gin drinkers. The extensive social and celebratory culture thus works well for mid-range brands seeking higher volume sales.

Insights by Distribution Channel: Convenience is Driving Off-Trade Store Gin Sales

In terms of distribution channel, liquor/off-trade stores is expected to contribute 40.4% share of the market in 2024, owing to the unparalleled convenience they provide. Off-trade stores allow consumers to purchase gin anytime as per their schedule without limitations of operating hours or minimum spends like bars or restaurants. One can pick gin bottles during daily grocery shopping or late in the evening without hassle. The stores also enable stocking up on favorite brands for parties and events at home. This round-the-clock availability and shopping flexibility ride on the convenience wave. Off-trade outlets further provide wide assortment under one roof for comparing brands and bottle sizes. Some stores even offer special deals, combo discounts or loyalty programs strengthening the value proposition. New city dwellers far from families also rely more on off-trade stores for regular household alcohol replenishment. The growing online retail has amplified the convenience quotient of off-trade channels allowing home delivery with ease. All these factors have positioned off-trade stores as the most hassle-free platform for gin purchases in urban as well as smaller Indian markets.

Market Report Scope

India Gin Industry News

• In January 2024, Allied Blenders and Distillers Limited (ABDL), announced the launch of ZOYA Special Batch Gin
• In 2023, Diageo India launches two brand-new gin variants
• In 2023, Radico Khaitan launches new distilled gin collection ‘Happiness in a Bottle: A Happily Crafted Gin’
• In 2023, Himmaleh Spirits Launches India’s First Provincial Dry Gin, Kumaon & I 

*Definition: The India gin market consists of companies that manufacture and sell gin products within India. Gin is a spirit that derives its predominant flavor from juniper berries. The India gin market has seen significant growth in recent years as disposable incomes have risen and consumers have developed a preference for premium spirits. Key players in this market import juniper berries and other botanicals to produce gin brands targeting young urban consumers who admire Western drinking cultures.

Market Segmentation

• Type Insights (Revenue, USD Mn, 2019 - 2031)
  • London Dry Gin
  • Flavored/Specialty Gins
  • Craft Gins
  • Others (Old Tom Gin, Plymouth Gin, and Genever/Dutch Gin, etc.)
•  Price Range Insights (Revenue, USD Mn, 2019 - 2031)
  • Economy/Value Gin
  • Mid-Range Gin
  • Premium Gin
• Distribution Channel Insights (Revenue, USD Mn, 2019 - 2031)
  • Liquor/Off-Trade Stores
  • Bars, Pubs, and Restaurants
  • Online/E-Commerce
• Key Players Insights
  • United Spirits Limited
  • Tilaknagar Industries Limited
  • Deejay Distilleries Private Limited
  • SNHL India Private Limited
  • Jagatjit Industries Limited
  • Mohan Meakin Limited
  • Radico Khaitan Limited
  • Globus Spirits Limited
  • Allied Blenders and Distillers Pvt.
  • SAB Millier
  • Khemani Group
  • SOM Distilleries and Breweries
  • Amrut Distilleries
  • Amber Distilleries Limited
  • Jaisalmer Indian Craft Gin
  • Terai India Dry Gin
  • NAO Spirits
  • Fullarton Distilleries
  • Tanqueray