India Gin Market is Estimated To Witness High Growth Owing To Trends Towards Premiumization

India Gin Market



Market Overview:

Gin is a spirit that is obtained by redistilling or compounding neutral spirits with juniper berries and aromatics. It is colorless in appearance and has a characteristic taste and aroma. Gin has gained immense popularity in India due to its refreshing taste and versatile mixability in cocktails. The market is driven by rising young-adult population, increasing social events and festivals, and expanding hospitality sector in the country.

The India gin market is estimated to be valued at US$ 546.03 Bn in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
One of the major trends witnessed in the India gin market is premiumization or a shift towards premium and luxury variants. Changing tastes and preferences of consumers towards premium products with unique flavors have led gin producers to launch super-premium variants with exotic botanicals and flavors. For instance, in 2020, William Grant & Sons launched Hendrick's Gin Eris, a new variant infused with rose and cucumber flavors, targeted at the premium segment. Additionally, rising experimentation with gin cocktails by bartenders and consumers for socializing occasions has further propelled the premium gin market in India. This is encouraging major players to focus on innovative premium launches to attract modern Indian consumers.

Porter’s Analysis
Threat of new entrants: The threat of new entrants in the India gin market is moderate. An established distribution network and brand recognition create barriers for new players. However, low capital requirements encourage small producers to enter the market.
Bargaining power of buyers: Buyers in the India gin market have moderate bargaining power due to the availability of substitutes like whisky and rum. However, demand for premium and craft gins is increasing awareness and trial among consumers.
Bargaining power of suppliers: The bargaining power of suppliers is low in the India gin market as the required raw materials like grains, fruits, and herbs are widely available. However, supply constraints during harvest seasons increase supplier power temporarily.
Threat of new substitutes: The threat of substitutes is moderate as liquor categories like rum and whisky compete for the same consumer base in India. However, the premiumization trend favors specialized spirits like gin.
Competitive rivalry: High as major players compete for market share through brand building, product innovation, and expansion to tier 2 and 3 cities.

SWOT Analysis
Strength: Strong brand recognition of major gin labels in urban regions. Increasing interest of millennial in craft gins and novel flavors.
Weakness: Low brand awareness in rural areas. Higher prices compared to mainstream spirits limits mass consumption.
Opportunity: Scope for premiumization and novel flavors to attract young consumers. Potential to leverage e-commerce for marketing and reach.
Threats: Stringent regulations surrounding alcohol advertising. High taxation policies impact affordability.

Key Takeaways

Global India Gin Market Demand is expected to witness high growth, exhibiting CAGR of 5.9% over the forecast period, due to increasing consumption among young urban consumers. Easy availability through retailers, bars and online channels as well as frequent new product launches will also propel market growth.

Regionally, major demand comes from metropolitan cities such as Mumbai, Delhi, Bengaluru. However, tier 2 cities in Northern and Western regions are emerging fast due to rising disposable incomes. States like Goa and Punjab already have a culture of liquor consumption and openness to experimentation which benefits gin sales.

Key players operating in the India gin market include Bombay Spirits Company LTD, Diageo plc, William Grant & Sons Ltd, Charles Tanqueray & Co., Vantguard, Jaisalmer Indian Craft Gin, Nao Spirits & Beverages Pvt Ltd, Radico Khaitan Limited, Pernod Ricard, and Beam Suntory, Inc. These manufacturers are focusing on new flavors, smaller packaging and expansion to tier 2 cities to boost market share. 

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