Shifting demand patterns must guide state excise policy design4 min read 13 Jan 2022, 09:52 PM IST
Our alcoholic-beverage market illustrates the need for policymakers to go by consumption trends in achieving public goals
Indian consumers are changing. Growing urbanization and rising incomes, coupled with the availability of innovative products and technology has the potential to transform the bell-curve of the market from price-sensitive to a quality-conscious consumer base. The younger to middle-age demographic focuses on nutrition content and brand value, with an increasing willingness to experiment with products. International travel and exposure to global products and brands have enhanced their awareness, now reflected in their purchase choices and behaviour. In the case of food and beverages, Indians are now comfortable with international cuisines. This has made India an attractive market for global manufacturers and retailers, many of whom want to launch and market their products before establishing local plants for one of the largest consumer markets in the world.