The alcoholic beverages industry is witnessing buoyance with the burgeoning Millennial consumers. A recent report by Goldstein Market Intelligence states that India’s alcobev market is the third-largest globally, after China and Russia.
This market is demographically the youngest, with most alcohol consumed by people aged 25 to 40 years. Rapid urbanisation beyond metro cities, rise in disposable incomes, online sale of liquor, and rise in the population eligible for legal drinking are factors driving liquor consumption.
The Covid-19 pandemic has changed the market dynamics of many sectors. The Indian alcobev industry is reaming back on its feet with an estimated CAGR of 7.4% in the run-up to 2024.
The new-age alcohol consumers are enthusiastic Millennials who love to experiment with new tastes and flavors. With the rise in disposable incomes and the aspiration to be known for experimenting and know-how of alcohol, the contemporary consumer segment is willing to pay for premium products.
The inclusion of women drinkers has been a positive trend in raising the bar for premiumisation. The change in outlook has led to social drinking with family and friends against the age-old practice of men partying with friends after work hours or on weekends.
The pandemic-induced lockdowns and work-from-home schedules introduced a transformation in drinking habits, with classy home bars that boast premium liquor from across the globe. Each has found a distinct place, from single malts, blended Scotch whisky to craft liquor.
Their unique taste, blend, and aroma sparkle and dazzle celebrations at home parties. Amateurs find it interesting to test their mixology and bartending skills. Experimenting with new do-it-yourself (DIY) cocktails keeps their spirits high.
Premium liquor adds subtle smoothness and zing to the flavors of cocktails that entice the taste buds.
The new-age consumers’ behavior is starkly different from the veteran drinkers, who prefer their all-time favorite brands and classic drinks. Blended Scotch has gained as much popularity as single malt among whisky consumers.
The diversity brings immense opportunities for alcobev producers and marketers. Today’s changing trends and consumers’ meticulous attention to taste and packaging have led to a spurt in demand for 1-litre bottles.
The launch of the imported 1-litre packaging of Cutty Sark blended Scotch whisky is an exquisite match that raises the spirits in the alcobev space. The premium Scotch brand follows unique techniques for blending and aging.
The greatest Scottish malts and finest grain whiskies are balanced with appealing vanilla and rich caramel flavours. Fresh and citrus aromas entice the taste buds to celebrate every occasion.
Deep market research helps brands sight the gaps in various categories to upgrade their product portfolios. A distinctive aromatic style like Bootz Dark Jamaica rum can bring in the anticipated diversity in the premium rum segment.
Over the last decade, Indian consumers have shown remarkable evolution in experimentation and exploration, opening doors for the ready-to-drink (RTD) market.
The pre-mixes are hits among calorie-conscious Millennials as they have less sugar, natural herbs, fruits, spices, and zero artificial flavors. The RTD market is a testament to experimentation and penetration in the years to come.
As we head towards the endemic and brace ourselves for the new normal, brands and consumers are looking forward to ongoing engagement with consumers. Alcohol brands find incredibly receptive customers at bars, music festivals, sporting events, and large seasonal gatherings.
By adding to an attendee’s fun experience, brands can secure their place in consumers’ taste palettes and memories.
Additionally, legacy brands that have enjoyed the loyal support of Gen X and Boomers thus far, now have the opportunity to create new brands with stories that resonate with Gen Z.
With more purchasing power, Gen Z and Millennials are contributing heavily to the world economy. The emphasis can shift from quality to quantity and new beverages can be introduced to cater to the health-conscious consumers.
The ever-evolving lifestyle changes and the tussle between new-age consumers and veterans are spicing up the spirits markets. With solid distribution networks and brand-building capabilities, gender-neutral marketing strategies can help brands outshine in the guzzling alcobev industry.