🤔 [Featured] Is India Upping Its Alcohol Game?
India's drinking habits are changing: we are drinking more and we are drinking at home. And one brand is trying to make this experience better for us.
Humans have a complicated relationship with alcohol.
While alcohol is mostly bad for us (drinking in limits, however, could have actual health benefits), it is great for the economy.
For instance, Indian states earn Rs. 2.25 trillion each year through taxes on alcohol.
But how India consumes this alcohol has undergone a massive change in the last few years.
🍾 India's Changing Drinking Habits
For starters, India is drinking more now.
Alcohol consumption in India has risen from 5.4 billion litres in 2016 to 6.5 billion litres in 2020.
Even the pandemic couldn't stop us from drinking.
In fact, India was one of few countries where people drank more alcohol during the pandemic than they did before.
And the drinking volume isn't the only thing that has changed.
📈 The Rise of the Indian Millennial
Millennials currently account for 34% of India's total population and 47% of our working population.
And most millennials are focusing on consumption, rather than savings (millennial savings account for only 10% of their income).
In fact, according to reports, Indian millennials are now set to spend $330 billion annually.
And a lot of this expenditure is in the premium segment.
Yes, more millennials are now buying premium products, including premium alcohol.
Earlier where Indians only preferred beer, whiskey and maybe scotch, now the consumption of craft gin, rum and wine is also on the rise.
But, a lot of these millennials don't want to drink in bars and restaurants anymore.
🏠 At-Home Drinking: The New Norm?
Yes, millennials are more focused on consumption but they still want to save money whenever they can.
And one of the easiest ways to save money is by drinking at home. After all, the pandemic prepared us to stay indoors. So much so, that now millennials want to continue house partying to avoid the 3-5x premium charged on drinks in bars and restaurants.
Result? The rise of the ready-to-drink cocktail segment. This space is growing at a CAGR of 10.03% and is expected to be worth $9.6 bn by 2032.
But more Indians want their homemade drinks to have a professional touch. The premium flavour without the premium price.
🍸 To the Rescue: Bar Accessories
And Bar Box is making these accessories available and accessible to most Indians.
Bar Box is one of India's first premium bar accessories brands that is trying to bridge the gap between bar decor and home decor.
It has over 100+ custom bar accessories kits that are perfect for any drink from whiskey to wine.
Now, the concept of bar accessories may sound novel and foreign to a lot of us. So, let's look at numbers to analyse how big the market is for them.
The global bar accessories market is set to grow at a CAGR of 5.4% to be worth $4.08 billion by 2032.
India is also adopting these accessories with open arms. Cashing in on this opportunity, Bar Box has managed to sell over 60,000 kits so far.
And, this isn’t the only market Bar Box can tap into. Spending habits of millennials have also boosted another segment: our Rs. 2,50,000 crores worth gifting industry. And, bar accessories make great gifts. So, the market seems ripe for D2C brands like Bar Box.
Wondering what challenges this industry faces and what Bar Box's future plans are? Join our Insider Insights session on Sep 18 (Sunday) at 7 pm with Bar Box's founder.
Interested in Bar Box? You can now invest in its fundraising campaign.
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