Segmenting Indian Alcohol Consumers: Analyzing Sustainable Trends Using K-Means Clustering

Abstract

Wine has become increasingly popular in India, with projections indicating an annual growth rate of 7% through 2029. This rise in popularity is partly attributed to the perception of wine as a healthier alternative to stronger spirits such as rum and brandy. This paper employs K-Means clustering to segment Indian millennial alcohol consumers and explores whether the increase in wine consumption is mainly driven by health and sustainability considerations. The findings reveal a correlation between wine consumption and the health and sustainability attributes valued by consumers. Four distinct clusters of Indian alcohol consumers were identified. Among these, two clusters exhibit an intention-behavior gap. One cluster primarily consumes strong spirits but is actively seeking healthier options, while the other shows little interest in strong spirits yet remains open to considering wine. Thus wine presents an opportunity for strong spirit drinkers to make healthier choices and may serve as a potential entry point for non-drinkers to begin consuming alcohol. © 2024 IEEE.