INDIA GIN MARKET ANALYSIS

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.