The predictions are made, the forecasts are out – and big changes are foreseen for the 2016-2020 period for the alcoholic beverage industry.
The current Indian GDP is growing at a zooming rate of 7.5%, making it one of the fastest growing economies in the world, second in tow only to China. Coupled with a median age of 25, which will comprise of 55% of the total population by 2025, India is a country to watch out for in terms of global expansion because of the spurt of growth in the productive population. Disposable incomes too are on the rise as a shift is seen, from a population that ‘saves’ to a population that ‘borrows to spend’. With two or more individuals working to add to the household income – the scope for consumer, convenience and aspirational goods have skyrocketed as consumers have no time or inclination to come home and do chores. “…the consumer market is pegged at a worth of US $507.46 billion for India”, according to a report by Kimberly Momin & Melissa Cyrill that supports the prediction that India is the next big market to watch out for companies looking for serious expansion. The news is especially heartening for new and major existing players in the drinks industry which had been experiencing a slowdown in the 2010-2015 period. The Boston Consulting Group (BCG) and the Confederation of Indian Industry’s foresights gauge India’s share of global consumption at 5.8% making it a serious topic of perusal for the liquor industry.
‘Fifteen Minutes of Fame’
The consumer’s perception of self has undergone a huge overhaul. How they perceive themselves has taken a backseat over how peers and opinion-leaders perceive them. Sticking close to current trends whether it is Pokemon Go, color blocking, using hashtags to embrace a social cause or even pouting for an Instagram post, the selfie generation takes to all like duck to water. Capitalizing on such emerging trends that affect the psychographic behavior of a consumer which in turn affects the purchase decision is a key development that liquor companies can use to significant growth advantage.
How 2016 shall fare for the liquor industry shall be interesting to watch out for.