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.

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.