An alcoholic beverage is a drink that contains 3% – 40% ethanol, an active ingredient which is a psychoactive chemical with depressant qualities. The basic alcoholic beverages are beer, wine, and spirits, which are consumed in massive quantities worldwide. Beer is an alcoholic beverage manufactured by the hydrolysis of starch and fermentation of the obtained sugar. Spirits or distilled beverages are produced by fermentation or distilling grains, vegetables, and fruits.

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This category includes spirits such as vodka, whiskey, gin, rum, and tequila. Wine is a type of alcoholic beverage made from the fermentation of grapes or other fruits. Alcoholic beverages are available to consumers through various distributional channels including supermarkets, restaurants, pubs, breweries, and specialty stores.

Alcoholic beverage demand increases with changing preferences & tastes of consumers, increase in the consumption pattern of drinks in affluent consumers, and increasing disposable income. New product development and innovation plays an important role and act as a driver for this industry. Another major driver for this industry is the expansion in distribution channels such as online sales, separate counters for females, outlets in airports, etc. The growing tourism sector is also playing a significant role in driving the alcoholic beverage industry.

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