Spirited Growth: Alcoholic Beverage Industry Set to Toast an 8-10% Revenue Surge
Alcoholic beverage manufacturers anticipate an 8-10% revenue growth to Rs 5.3 lakh crore this fiscal year, continuing a 13% CAGR trend. Operating profitability will rise by 60-80 basis points due to premiumisation. Spirits dominate the sector, bolstered by urbanisation and advancing premium and luxury segment sales.
- Country:
- India
The alcoholic beverage industry in the country is poised for significant expansion, anticipated to achieve a revenue growth of 8-10% at Rs 5.3 lakh crore in the current fiscal. This momentum follows a 13% CAGR observed over the past three fiscals, as indicated by a recent report released on Friday.
According to Crisil Ratings, operating profitability for the sector is set to rise by 60-80 basis points, propelled by ongoing premiumisation. The spirits segment, contributing the lion's share of 65-70% of total revenue, remains a dominant force within the industry, with beer, wine, and country liquor making up the rest.
Urbanisation, the proliferation of drinking populations, and rising disposable income underpin a 5-6% increase in industry volume. The premium and luxury segment, priced above Rs 1,000 per 750 ml, is projected to grow by 15%, enhancing its contribution to spirits revenue. Cost absorption will improve operating margins despite marginal increases in input costs.
(With inputs from agencies.)
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