Demand for good alcohol could dry up substantially

Demand for alcohol could reduce on account of growth of non-alcoholic beverages and perhaps dry dating. According to Statista, Alcohol consumption in India amounted to about five billion liters in 2020 and was estimated to reach about 6.21 billion liters by 2024. Revenue in the non-alcoholic drinks market amounts to $11.20 billion in 2022. The market is expected to grow annually by 4.05 per cent (CAGR 2022-2026).

India's alcohol market consisted of two main kinds of liquor �� Indian made Indian liquor or IMIL, and Indian made foreign liquor or IMFL. This was in addition to beer, wine and other imported alcohol. Country liquor accounted for the highest market share, while spirits took up the majority of the consumption market.

The consumption of IMFL rose by 17.97 per cent from 1,999.25 lakh bulk litres (LBL) in 2020-21 to end at 2,358.60 LBL in 2021-22. In comparison, beer sales grew by a lower 14.95 per cent from 2,011.93 LBL to 2,312.81 LBL, and CL, which is consumed by the working and toiling classes, went up from 3,208.06 LBL to 3,483.08 LBL (8.57 per cent). Wine sales grew by a massive 21.75 per cent from 70.76 LBL in 2020-21 to 86.15 LBL in 2021-22 though wine consumption is negligible in terms of volumes compared to the other categories of liquor. While it is known that alcohol consumption has always been high among men, the recently released National Family Health Survey (NFHS-5) for 2019-2021 has found that only 1 per cent of women, aged 15-49, drink alcohol in the country, compared to 22 per cent of men. The overall consumption is high in rural areas, stated the report.

Overall the proportion of men who drink alcohol decreased from 29 per cent to 22 per cent between NFHS-4 in 2015-2016 and NFHS-5 in 2019-2021. During that period, the proportion of women who drink has remained unchanged, according to the report.

According to a study, over 88 per cent of Indians aged under-25, purchase or consume alcoholic beverages even though it is illegal. This was despite bans on alcohol in some states across the country and limitations on sales in some others. However, the women's first dating app, highlights the growing trend of 'dry-dating' among single Indians is a trend this year.

In fact, more than half of Indians (51 per cent) are now more willing than they were before the outbreak to consider going on a 'dry date.' This trend is even more pronounced among GenZ, who are defying the 'dry dating' trend by refusing to drink at all on a date. As we manage the pandemic, people have re-evaluated their connection with alcohol. In fact, 43 per cent of Indians polled said they plan to drink less than they did previously.