Reportlinker adds the Future of Alcoholic Beverages in India: Changing Consumer Preferences and Emerging Opportunities

Dec 08, 2010, 14:16 ET from Reportlinker

NEW YORK, Dec. 8, 2010 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:

The Future of Alcoholic Beverages in India: Changing Consumer Preferences and Emerging Opportunities

http://www.reportlinker.com/p0337416/The-Future-of-Alcoholic-Beverages-in-India-Changing-Consumer-Preferences-and-Emerging-Opportunities.html

Introduction

This report analyzes the changing societal perceptions of alcohol consumption in India, marketers' efforts through surrogate advertising and event sponsorship, and the resultant rise in demand for alcoholic beverages across several urban Indian consumers. It points out key opportunities for companies to explore, in terms of both product development and marketing.

Features and benefits

Detailed insights and analysis documenting the drivers and inhibitors in the Indian alcoholic beverages market

Exclusive occasions, market and consumer survey data and analysis covering each category

Strategic conclusions combined with actionable recommendations for all industry players looking to fully capitalize on this market

Consumer understanding: obtain a detailed understanding of Indian consumers' attitudes and behaviors towards consumption of alcoholic beverages

Market understanding: identify key consumer segments, profitable alcoholic beverage categories and product innovation trends in India and globally

Highlights

While partying with friends at a pub, bar or restaurant, it is observed that beer is the most favored drink by Indians across all age groups, but spirits/liquor is most favored while partying at home. This is a result of the beer brands' marketing efforts to promote beer drinking as part of social interactions in the context of sports, music, etc.

Indian consumers' value-for-money considerations are found to decrease with age, and this is more apparent among the Indian women. Also, value-for-money plays a more important role while drinking at a pub, bar or restaurant, than while at home, which is a result of the significant premium that is charged in most on-trade channels.

Advertising restrictions have given rise to a number of alternate avenues for the promotion for alcohol brands in India. Indian market players have been forced to be more innovative in their approach to engaging with consumers, branching out into concepts such as non-alcohol brand extensions and surrogate advertising and alignment with sport.

Your key questions answered

What are the key category growth trends in the Indian alcoholic drinks market?

What societal trends are influencing Indians' propensity for alcoholic drinks consumption?

How are different demographic groups' (different ages, gender, etc.) attitudes and behaviors towards alcoholic drinks changing?

What drives Indians' perceptions of value in the alcoholic drinks products they buy?

How is the Indian alcoholic drinks market balanced between on- and off-trade sales and how is this changing over time?

TABLE OF CONTENTS

Overview 1

Catalyst 1

Summary 1

The Future Decoded 9

Introduction: Indians' changing consumption patterns and choice of alcoholic beverages is fueling the growth of the market 9

TREND: Even with the rising acceptance of social drinking, the Indian alcoholic beverage market is defined by the moderate consumption behavior of consumers 10

TREND: Changing alcohol consumption patterns are fuelling a more diverse alcohol market in India 23

TREND: Indian consumers' off-trade consumption is largely driving the overall market growth 31

TREND: Alcoholic beverages brand marketers are using innovative marketing concepts to bypass restrictions on advertising of alcoholic beverages in India 36

INSIGHT: Indians exercise a high degree of moderation in alcohol consumption owing to equal concerns over both weight gain and long-term health impacts 42

INSIGHT: Indians' perception of value is driven by quality more than price in their choice of alcoholic drinks 53

INSIGHT: Since Indians tend to have a ritualistic attitude towards alcohol consumption, brand loyalty plays a significant role in consumers' choice of alcoholic drinks 61

INSIGHT: Though an external attribute, packaging of alcoholic drinks is an important factor in shaping Indians' purchase decisions 65

INSIGHT: There is a rising understanding among Indians about the link between food and alcoholic drinks 68

Action Points 75

ACTION: Popular alcohol brands should evaluate possibilities for the Introduction of low-calorie variants to appeal to health-conscious drinkers 75

ACTION: Introduce innovative packaging concepts to drive off-trade uptake of beer 76

ACTION: Be aware of the imminent opportunity that exists in the ready-to-drink alcoholic beverages market 77

ACTION: Capitalize on the consumer desire to trade-up in an optimistic economic environment 79

ACTION: Make available more comprehensive information on the link between food and alcohol at on-trade destinations such as bars and restaurants 80

Appendix 82

Definitions 82

Methodology 85

Further reading and references 87

Ask the analyst 87

Datamonitor consulting 87

Disclaimer 88

TABLE OF FIGURES

Figure 1: Even amid widespread moderation and abstention, rising acceptance of alcohol consumption, especially among urban Indians, is driving the Indian alcoholic beverages market 10

Figure 2: Although India has long been known to be a predominately spirits-driven market, beer and wine are expected to grow at a faster rate compared to spirits over the next five years 12

Figure 3: The spirits market and the beer, cider and FABs markets contribute almost equally to the overall Indian alcoholic beverage market volume 13

Figure 4: Close to 75% of Indian consumers pay a high amount of attention to the short-term impact of drinking too much alcohol, such as having a hangover the following day 14

Figure 5: Although the market value of alcoholic drinks and per capita expenditure in India is very low, the market has grown at a healthy CAGR of close to 20% over 2004–09 15

Figure 6: The large number of Indians who surpass the legal drinking age every year reinforces the optimism expressed regarding the potential of the Indian alcoholic beverages market 17

Figure 7: With the rising number of alcohol consumption occasions, the pattern of alcohol consumption among Indians is gradually changing 18

Figure 8: Indian consumers are exercising a small degree of moderation with respect to their alcohol intake, both on weekdays and weekends 21

Figure 9: Gender roles and societal norms define the basis for the high abstention rates among Indian consumers towards alcohol consumption 22

Figure 10: India's professional landscape has seen a massive transformation over the last two decades, with the contribution of the services sector rising from 45% to more than 55% 25

Figure 11: Marketers' efforts to associate beer with sports has led Indians to consume beer at relevant on-trade destinations 26

Figure 12: Across all the consumption occasions, beer is a favored alcoholic drink among almost a third of Indian consumers 27

Figure 13: Rising appreciation for wine among Indians is evident in the significant increase in the frequency of consumption over the last year 29

Figure 14: Over 50% of Indians feel intimidated by the idea of choosing and buying wine, or feel like they would want to be more knowledgeable about wine 30

Figure 15: Irrespective of the frequency of alcohol consumption, Indians show a slight preference for off-trade or at-home alcohol consumption 32

Figure 16: Reducing social stigma and post-recessionary impacts have fueled the growth of at-home alcohol consumption in India 33

Figure 17: Brand extensions by alcoholic drink manufacturers in India serve as an ideal platform to increase the relevance and recall of the brand among the target audience 38

Figure 18: The number of sports events and musical concerts sponsored by alcoholic brands in India has seen a steady increase over the last few years 39

Figure 19: International alcohol brands are using innovative techniques to connect with the prospective consumers through out-of-home and new media channels 41

Figure 20: The rising realization of short- and long-term health impacts of alcohol consumption has led to over 40% of Indians cutting down on the overall amount of alcohol bought or consumed 43

Figure 21: Excessive alcohol consumption has been shown to have a strong correlation to greater chances of developing coronary diseases in the long term 44

Figure 22: Over 80% of Indians are consciously paying attention to ensure that they do not drink too much alcohol in general 45

Figure 23: While drinking an alcoholic beverage, over 80% of Indians have less than three drinks on weekdays, but this drops to 50% on weekends 46

Figure 24: Close to 70% of Indians pay high levels of attention to the potential weight gain from drinking alcohol 47

Figure 25: Close to 75% of Indian men and women give above-average levels of attention to the long-term health impact of drinking too much alcohol 48

Figure 26: Compared to India, information about moderation in alcohol consumption is far better articulated and distributed in countries such as the US and the UK 49

Figure 27: Close to 90% of Indians believe that they are well informed about the recommended quantity of alcohol to be consumed 50

Figure 28: The majority of Indians feel that they are well informed of the health risks associated with the consumption of alcoholic drinks 51

Figure 29: Although Indians are well informed about alcohol consumption limits, almost a third of consumers believe that there should be health warnings on alcohol products 52

Figure 30: In the past six months, close to 30% of Indians have begun choosing their alcoholic drink in pubs, bars or restaurants more on the basis of value 54

Figure 31: In the past six months, more than 30% of Indians have chosen higher quality alcoholic drinks in pubs, bars or restaurants more often 55

Figure 32: In the past six months, 30% of Indians have chosen alcoholic drinks for at-home consumption more on the basis of value compared to before 56

Figure 33: In the past six months, over 30% of Indians have chosen higher quality alcoholic drinks for at-home consumption more often than before 57

Figure 34: In the past six months, over 40% of Indians have chosen cheaper types of alcoholic drinks less often as compared to before, while drinking at pubs, bars and restaurants 58

Figure 35: In the past six months, over 40% of Indians have chosen cheaper types of alcoholic drinks less often as compared to before, while drinking at home 59

Figure 36: With the decreasing effects of the economic recession, Indians do not seem to choose cheaper types of alcoholic drinks 60

Figure 37: Close to 65% of Indians tend to stick to one or two favorite alcoholic drink brands 62

Figure 38: A little over 10% of Indians said that over the past six months they have bought cheaper brands of alcoholic drinks while drinking in pubs, bars and restaurants more often compared to before 63

Figure 39: Around 15% of Indians said that over the past six months they have bought cheaper brands of alcoholic drinks while drinking at home more often compared to before 64

Figure 40: More than 25% of Indians agree that they often buy alcoholic drinks based on the aesthetics of the packaging 66

Figure 41: Differentiated packaging benefits which add to the aesthetics of the packaging would play a significant role in influencing Indians consumers' alcohol brand choices in the near future 67

Figure 42: Less than 10% of Indians strongly agree that they are likely to buy an alternative product if they see an alcoholic beverage product that has too much packaging 67

Figure 43: Indians' growing appreciation for wine is fueling the desire to understand the importance to match food and alcohol 69

Figure 44: Over a fifth of Indians claim that they are very well informed about how to match food and alcohol 69

Figure 45: As Indians become more discerning with respect to their choice of alcoholic drinks, they are also becoming concerned about pairing their diet with the right kind of alcoholic drink 70

Figure 46: In the past six months, 40% of Indians have started choosing alcohol on the basis of how well it goes with food, more often than before 71

Figure 47: While having a relaxing drink at home with a meal, the most preferred drink among almost 40% of Indians is wine, beer coming a close second 72

Figure 48: While having a relaxing drink at a bar, restaurant or pub with a meal, Indians show similar preferences towards beer, wine and spirits 73

Figure 49: Alcohol brands in India should invest in and make low-calorie variants of their brands to promote the cause of 'sensible drinking' 76

Figure 50: Beer brands should capitalize on the rising number of at-home drinking occasions of Indians by creating novel and convenient packaging concepts 77

Figure 51: Ready-to-drink alcoholic beverages would see a gradual rise in demand over the next few years, as Indian consumers realize the convenience and variety they offer 78

Figure 52: The menu cards in on-trade destinations in India need to provide detailed information on food-alcohol pairings to build long-standing associations in the consumers' minds 80

Figure 53: Consuming wine along with dessert is an unexplored territory in India, and would present a significant opportunity for manufacturers in the future 81

TABLE OF TABLES

Table 1: Alcoholic beverages market value ($ billion) and market volume (million liters), India, 2004–14 12

Table 2: Alcoholic beverages market per capita expenditure ($), CAGR over 2004–09 (%) and market value ($ billion), Brazil, Russia, India, China, the US and the UK, 2004–09 16

Table 3: Number of beer, FABs, spirits and wine consumption occasions in India (millions), 2004–14 19

Table 4: Number of alcoholic beverage occasions per capita in India, by category, 2004–14 19

Table 5: Number of overall alcoholic beverage occasions in India, by gender (millions), 2004–14 20

Table 6: Number of beer, FABS, spirits and wine consumption occasions in India, by age demographic (millions), 2004–14 20

Table 7: Overall alcoholic beverage market volume sales in India, on-trade and off-trade (million liters), 2004–09 34

Table 8: Number of on-trade and off-trade alcoholic beverage consumption occasions in India (millions), 2004–14 34

Table 9: Number of on-trade and off-trade consumption occasions of beer, spirits and wine in India (millions), 2004–14 35

To order this report:

Alcoholic Drink Industry: The Future of Alcoholic Beverages in India: Changing Consumer Preferences and Emerging Opportunities

Alcoholic Drink Business News

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