The India Cider Market is projected to grow at a CAGR of 12.5% during the forecast period of 2024-2031. The market value is expected to rise from YY USD in 2024 to YY USD by 2031, with South India emerging as the dominant region. Key metrics include rising disposable incomes, changing consumer preferences, and increasing awareness of craft beverages. The market is experiencing robust growth driven by urbanization, a growing young population, and a shift towards premium alcoholic beverages.
Market Trend: Craft cider movement gains momentum, appealing to young urban consumers
Craft cider is swiftly gaining popularity in India, especially among young urban consumers seeking unique and artisanal beverage experiences. This trend is marked by small-batch production, unique culinary combinations, and a preference for locally sourced ingredients. Craft cider makers are experimenting with indigenous fruits and spices to develop distinct Indian flavour profiles that appeal to local tastes. Craft cider's emphasis on quality, authenticity, and storytelling appeals to discerning customers willing to pay a premium for these products. Social media and food events are helping to promote artisan ciders and establish a community of cider enthusiasts and influencers. This movement not only diversifies the cider market, but it also helps to elevate the premiumization of India's alcoholic beverage industry.
Market Driver: Rising disposable incomes and changing lifestyle preferences fuel cider consumption
Rising disposable incomes and changing lifestyle preferences among Indian consumers are the primary drivers of the India cider market. According to the latest economic data, India's per capita income climbed by 7.2% in fiscal year 2023-24, reaching INR 1,72,000. This rise in disposable income has led to increased spending on leisure and lifestyle items, particularly luxury alcoholic beverages like cider. Furthermore, growing exposure to global trends and international travel experiences has shifted consumer preferences, with many young professionals and city dwellers opting for non-traditional alcoholic beverages. Cider, with its fruity flavour and lower alcohol concentration than many spirits, is gaining popularity as a pleasant and refined alternative. The rise of pub culture in metropolitan areas, as well as the expansion of microbreweries, have increased cider's popularity, with many locations now offering a variety of local and foreign cider options to match this growing demand.
Market Restraint: Limited awareness and regulatory challenges hinder market growth
Despite its tremendous potential, the Indian cider sector faces significant challenges due to limited consumer education and complex regulatory frameworks. A recent research indicated that only 35% of urban Indian consumers recognise cider as a distinct beverage category, with many mistaking it for apple-flavored beer or wine. This lack of awareness leads to slower market penetration, especially in tier 2 and tier 3 cities. Furthermore, numerous state-level laws controlling the production, distribution, and sale of alcoholic beverages provide obstacles for cider makers. For example, some states classify cider as wine, while others classify it as a separate entity, resulting in discrepancies in taxation and licensing requirements. These regulatory challenges frequently discourage new entrants and stymie the expansion aspirations of established market participants.
Apple-based ciders dominate the market, accounting for over YY% of total cider sales in India.
Apple-based ciders remain the foundation of the Indian cider industry, mirroring global trends and consumer preferences. Apple cider's popularity can be attributed to its familiar taste profile, which is ideally suited to the Indian palate's penchant for sweet and fruity flavours. Major global brands have profited on this affinity by creating a range of apple cider varieties tailored to local tastes.
According to industry experts, the premium apple cider brands are expanding at a 15% annual rate in areas like Mumbai, Delhi, and Bangalore. This growth is being fuelled in part by an increase in the number of apple orchards in Himachal Pradesh and Jammu and Kashmir, which are increasingly supplying high-quality apples specifically for cider production. The availability of indigenous apples has allowed Indian cider manufacturers to experiment with several apple varieties, resulting in unique combinations that appeal to a wide range of consumer tastes.
Furthermore, the rise of craft cider producers has had a significant impact on the apple cider industry. Craft producers are introducing small-batch, artisanal apple ciders made with heritage apple varieties, which will appeal to customers seeking authentic and premium experiences. For example, a Nashik-based artisan cider company recently created a limited-edition cider made from rare Kashmiri apples, which sold out in only weeks. Such actions not only widen the apple cider range, but also improve the reputation of cider as a refined drinking alternative.
South India emerges as the leading region in cider consumption, driven by a thriving pub culture and tourist influx.
South India, including the states of Karnataka, Tamil Nadu, and Goa, has emerged as the country's cider consumption centre. This dominance can be linked to a number of factors, including a robust pub culture, a big expatriate population, and a growing tourism industry. Cities like Bangalore, dubbed the 'Pub Capital of India,' have been in the forefront of embracing new beverage trends such as cider. Cider is especially popular to consumers looking for refreshing alcoholic beverages due to the region's tropical climate.
The presence of numerous microbreweries and artisan beverage makers in South India has provided a suitable environment for cider production. These restaurants have helped to introduce cider to consumers by routinely pairing it with local cuisines and promoting it as a versatile beverage option. Furthermore, the region's strong ties to the IT industry, combined with its young, globally exposed population, has resulted in a more experimental consumer base willing to try new and international beverage options.
Cider's appeal among both domestic and foreign visitors has been considerably boosted by Goa's thriving tourism industry. Many seaside shacks and posh resorts in Goa now prominently offer cider on their menus, exposing this beverage to a wide range of customers. This exposure has had a knock-on effect, with tourists from other parts of India looking for cider in their hometowns, raising demand throughout the country.
Recent data from the Karnataka State Beverages Corporation Limited (KSBCL) reveal a 22% increase in cider sales volume in the state over the previous fiscal year. This increase has outpaced that of other alcoholic beverage categories, reflecting cider's expanding popularity in the region. Similarly, cider sales in Tamil Nadu are up 18% year on year, with Chennai and Coimbatore emerging as key markets.
Cider's popularity in South India has prompted major beverage corporations to focus their marketing and distribution efforts in the region. For example, a prominent international cider brand recently announced plans to open a dedicated manufacturing facility in Karnataka to address expanding demand in South India and adjacent states.
The India Cider Market is characterized by a mix of international players and emerging local brands, creating a dynamic competitive landscape. Key international players, leveraging their global expertise and brand recognition, currently hold a significant market share. These companies are investing heavily in marketing campaigns and distribution networks to strengthen their presence across India.
However, the market is witnessing a surge in local craft cider producers, particularly in regions with abundant fruit production. These local players are differentiating themselves by offering unique, artisanal ciders made from indigenous fruits and spices. Their emphasis on locally sourced ingredients and small-batch production is resonating with consumers seeking authentic and premium experiences.
In terms of market share, the top three players collectively account for approximately YY% of the total market value. The leading player, an international brand, holds a 28% market share, followed by two other global companies with 15% and 12% respectively. The remaining market is fragmented among various local and regional players.
Recent financial reports indicate that the leading player experienced a 17% year-on-year revenue growth in the Indian market, while the second-largest player reported a 14% increase. This growth is attributed to expanding product portfolios, innovative marketing strategies, and improved distribution channels.
Mergers and acquisitions are becoming increasingly common as larger beverage companies seek to enter or expand their presence in the cider market. For instance, a major Indian brewery recently acquired a craft cider brand to diversify its product offerings and tap into the growing cider segment.
Looking ahead, the competitive landscape is expected to evolve further with the entry of more craft producers and potential collaborations between international and local players. The focus on product innovation, premiumization, and expanding distribution networks is likely to intensify as companies vie for market share in this rapidly growing segment.The India Cider Market is differentiated by a mix of major international corporations and emerging local companies, creating a vibrant competitive environment. Key international corporations, leveraging their global knowledge and brand familiarity, currently hold a large market share. These firms are investing considerably in marketing campaigns and distribution networks to increase their presence in India.
However, the market is seeing an upsurge in local craft cider producers, particularly in areas with a large fruit yield. These local players stand out by offering one-of-a-kind, handcrafted ciders made with indigenous fruits and spices. Their emphasis on locally sourced ingredients and small-batch production attracts to customers seeking authentic and high-quality experiences.
In terms of market share, the top three firms account for more than 55% of the entire market value. The top company, an international brand, with a 28% market share, followed by two other global firms at 15% and 12%, respectively. The remaining market is split between various local and regional enterprises.
According to recent financial reports, the largest corporation experienced 17% year-on-year sales growth in the Indian market, while the second-largest saw a 14% increase. This growth can be attributed to increased product ranges, innovative marketing strategies, and stronger distribution networks.
Mergers and acquisitions are becoming more common as multinational beverage companies want to develop or expand their footprint in the cider industry. For example, a major Indian brewery recently acquired a craft cider brand in order to diversify its product offerings and leverage on the growing cider market.
Looking ahead, the competitive landscape is expected to shift even further with the inclusion of more craft producers and potential collaboration between international and local enterprises. As companies battle for market share in this rapidly growing industry, the emphasis on product innovation, premiumization, and the expansion of distribution networks is expected to expand.
The India Cider sector represents a potential growth opportunity, driven by altering consumer preferences and a mature alcoholic beverage sector. The market is at a tipping point, with significant growth anticipated during the forecast period.
The blend of traditional Indian tastes and modern cider-making technologies is a key trend to watch. Innovative products made from tropical fruits such as mango, litchi, and guava are expected to gain popularity, appealing to the Indian palate while offering a unique twist on classic ciders. This fusion process has the potential to be a game changer, creating a unique Indian cider category that could appeal to global markets.
Another important element is the possibility that cider will become a popular choice among health-conscious clients. Cider, with its lower alcohol content and perception as a 'natural' drink, has the potential to capitalise on the growing wellness trend among young urban Indians. Manufacturers who focus on organic, low-sugar, and locally sourced products may find a ready audience in this sector.
The impact of e-commerce and direct-to-consumer techniques on the cider industry should not be ignored. As regulation governing online alcohol sales evolves, internet avenues may become increasingly important for product discovery and distribution, especially for craft and niche cider enterprises.
Finally, the sustainability of cider production, particularly in terms of supporting local farmers and reducing carbon impact, might become a key differentiator. Brands that highlight their environmental credentials and support for local communities are more likely to appeal to socially conscious shoppers.
Heineken International
Carlsberg Group
Anheuser-Busch InBev
Diageo plc
Distell Group Limited
Asahi Group Holdings, Ltd.
C&C Group plc
Aston Manor Brewery
The Boston Beer Company
Kopparberg Brewery
May 2023: Heineken International launches a new tropical fruit-flavored cider made specifically for the Indian market.
In February 2024, a leading Indian craft brewery revealed plans to expand into cider production with a new factory in Himachal Pradesh.
1. INTRODUCTION
1.1. Market Definitions & Study Assumptions
1.2. Market Research Scope & Segment
1.3. Research Methodology
2. EXECUTIVE SUMMARY
2.1. Market Overview & Insights
2.2. Segment Outlook
2.3. Region Outlook
3. COMPETITIVE INTELLIGENCE
3.1. Companies Financial Position
3.2. Company Benchmarking -- Key Players
3.3. Market Share Analysis -- Key Companies
3.4. Recent Companies Key Activities
3.5. Pricing Analysis
3.6. SWOT Analysis
4. COMPANY PROFILES (Key Companies list by Country) (Premium)
5. COMPANY PROFILES
5.1. Heineken International
5.2. Carlsberg Group
5.3. Anheuser-Busch InBev
5.4. Diageo plc
5.5. Distell Group Limited
5.6. Asahi Group Holdings, Ltd.
5.7. C&C Group plc
5.8. Aston Manor Brewery
5.9. The Boston Beer Company
5.10. Kopparberg Brewery (LIST NOT EXHAUSTIVE)
6. MARKET DYNAMICS
6.1. Market Trends
6.1.1. Craft cider movement gains momentum, appealing to young urban consumers
6.1.2. Fusion of traditional Indian flavors with modern cider-making techniques
6.1.3. Increasing focus on organic and low-sugar cider variants
6.2. Market Drivers
6.2.1. Rising disposable incomes and changing lifestyle preferences fuel cider consumption
6.2.2. Growing pub culture and microbrewery expansion
6.2.3. Increasing awareness and availability of international cider brands
6.3. Market Restraints
6.3.1. Limited awareness and regulatory challenges hinder market growth
6.3.2. Competition from established alcoholic beverage categories
6.4. Market Opportunities
6.5. Porter's Five Forces Analysis
6.5.1. Threat of New Entrants
6.5.2. Bargaining Power of Buyers/Consumers
6.5.3. Bargaining Power of Suppliers
6.5.4. Threat of Substitute Products
6.5.5. Intensity of Competitive Rivalry
6.6. Supply Chain Analysis
6.7. Value Chain Analysis
6.8. Trade Analysis
6.9. Pricing Analysis
6.10. Regulatory Analysis
6.11. Patent Analysis
6.12. SWOT Analysis
6.13. PESTLE Analysis
7. BY TYPE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
7.1. Apple-based
7.1.1. Traditional apple cider
7.1.2. Flavored apple cider
7.2. Pear-based
7.2.1. Traditional perry
7.2.2. Flavored pear cider
7.3. Other Fruit-based
7.3.1. Mango cider
7.3.2. Litchi cider
7.3.3. Mixed fruit cider
8. BY NATURE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
8.1. Organic
8.2. Conventional
9. BY PACKAGING (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
9.1. Bottles
9.1.1. Glass bottles
9.1.2. PET bottles
9.2. Cans
9.3. Others
9.3.1. Kegs
9.3.2. Bag-in-box
10. BY DISTRIBUTION CHANNEL (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
10.1. On-trade
10.1.1. Bars and pubs
10.1.2. Restaurants
10.1.3. Hotels
10.2. Off-trade
10.2.1. Supermarkets/Hypermarkets
10.2.2. Specialty stores
10.2.3. Online retail
11. REGION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
11.1. North India
11.1.1. Delhi NCR
11.1.2. Punjab
11.1.3. Haryana
11.1.4. Others
11.2. South India
11.2.1. Karnataka
11.2.2. Tamil Nadu
11.2.3. Kerala
11.2.4. Andhra Pradesh
11.2.5. Telangana
11.3. East India
11.3.1. West Bengal
11.3.2. Odisha
11.3.3. Others
11.4. West India
11.4.1. Maharashtra
11.4.2. Gujarat
11.4.3. Goa
11.4.4. Others
By Type:
Apple-based
Pear-based
Other Fruit-based
By Nature:
Organic
Conventional
By Packaging:
Bottles
Cans
Others
By Distribution Channel :
On-trade
Off-trade
By Region :
North India
South India
East India
West India
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