Gin is a distilled alcoholic beverage that is produced from grain and various flavors with botanicals. It is popular due to its pine flavors because of the presence of juniper berries. However, gin is Dutch production but English made it popular around the globe and today it is produced and consumed worldwide. It is basically produced from range of cereal grains such as rye, barley, corn, and wheat. Use of botanicals during the distillation of gin makes it different from other liquors because it is not a simple infusion. The aroma and flavors in gin come from juniper berries as it is responsible for pine flavor. Gin is basically produced from different botanical recipe, flowers, spices, comprised of various herbs, and fruits. Almond, fennel, cassia, coriander, anise, angelica, and citrus peels are the most commonly used botanical ingredients in the production of gin.

The India gin market is estimated to account for around US$ 266.2 million in terms of value in the year 2018 and it predicted to grow at a CAGR of 5% during the forecast period (2019-2027)

Drivers

Increasing disposable income of the people is expected to be a major driving factor propelling the growth of India Gin market over the forecast period. Ministry of Statistics and Program Implementation, India's per-capita income at current prices during 2018-19 is estimated to have attained a level of Rs 1,26,406 ( Rs. 10,533.83 monthly) as compared to the estimated for the year 2017-18 of 1,14,958 ( 9,579.83 a month), showing a rise of 10%.

Market Opportunities

Increasing product premiumisation due to rising demand for the premium brand among the population of India is projected to provide potential growth opportunity to the market growth of gin. For instance, in December 2019, premium Indian rum brand Wild Tiger Beverages is diversifying into the gin segment in travel retail and duty-free with the launch of Gindia Original Craft gin. It is an amalgam of classic gin botanicals and hand-picked Indian botanicals which includes Himalayan Juniper, Assam Tea, Green Cardamom, Black Pepper, Clove, Sweet Orange peel to name a few of the 23 botanicals that go into its production.

Market Restraints

Strict government regulations that differ state to state are expected to hinder the growth of the India gin market. According to the Coherent Market Insights analysis, the system for distribution of alcohol differs from state to state, with around 70% of alcohol sales occurring through a government-controlled distribution system as against free-market distribution and auction system. Moreover, the  government also exercises strict control on cost and permissible sizes of stock-keeping units (SKUs). This is projected to hinder the market growth.

Key Takeaways:

On the basis of the product type, the economy segment dominated the India gin market in 2018 with a 98.8% of market share in terms of value, followed by premium & luxury

Market Trends

The rising trend of product innovation in the Indian gin market is expected to augment the market growth. For instance, in December 2019, Radico Khaitan brought Jaisalmer Indian Craft Gin to the Indian retail market recently, after launching it successfully in over 16 countries and select duty-free outlets worldwide. With this launch, the company has not only tapped into a new segment but also forayed into a new and emerging category of craft gin in the Indian domestic.

The rising number of mergers and acquisitions in the gin market by major players is projected to propel the growth of the India gin market over the forecast period. For instance, in January 2019, Sazerac has purchased an additional 20% stake in John Distilleries Private (JDPL) from private equity firm Gaja Capital. The stake is valued at around £116m.

Competitive Section:

Key players operating in India gin market are United Spirits Limited, Tilaknagar Industries Limited, Deejay Distilleries Private Limited, SNHL India Private Limited, Jagatjit Industries Limited, Mohan Meakin Limited, Radico Khaitan Limited, and Globus Spirits Limited

Market Taxonomy

By Product Type

  • Economy
  • Premium & Luxury

By Zone

  • South
  • East
  • West
  • North