Alcoholic beverage market may touch $64 billion in five years: Report
New Delhi: The Indian alcoholic beverage industry could reach a market size of USD 64 billion in the next five years, said a report from ISWAI.
It positions India as the fifth-largest contributor to global market revenues in the near to medium term.
In 2021, the AlcoBev (alcoholic beverage) industry had an estimated market size of USD 52.4 billion (Rs 3.9 lakh crore, including country liquor), which was around 2 per cent of the nominal GDP of the country, said the report titled 'Economic Value of the Indian Alcoholic Beverage Industry'.
"Projections suggest the Indian alcoholic beverage industry could reach an astounding USD 64 billion over the next five years, ensuring India's position as the fifth-largest contributor to global market revenues in the near to medium term," it said.
In the fiscal year 2021, the industry contributed a significant Rs 2.4 lakh crore in indirect taxes to the state governments, representing many income streams.
Customs duty on alcoholic beverages alone accounted for Rs 2,400 crore, said the report from International Spirits and Wines Association of India (ISWAI).
"The alcohol revenues represent 1.2 per cent of India's nominal GDP, 7.7 per cent of the total tax collection, and 11.7 per cent of the nation's indirect tax revenue," it said, adding, "the sector contributes a significant 24.6 per cent of the overall own tax revenues of the states." ISWAI represents the global liquor companies in India. Its members include global leaders in the spirit and wine industries like Bacardi, Beam Suntory, Brown Forman, Campari Group, Diageo-United Spirits, Mot Hennessy, Pernod Ricard, and William Grant & Sons.
