Decarbonizing Cheers: Sustainability in India’s Alcoholic Beverage Industry
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This post is a part of DIL Intelligence series from Energy Alternatives India (EAI), India’s leading climate-tech consulting firm.

DIL stands for Decarbonization for India’s Leaders and provides comprehensive market intelligence and updates to Indian corporate leaders on prominent decarbonization efforts across the Indian industrial ecosystem. DIL is provided by EAI’s strategy consulting team. More about our consulting from here.


The Indian Alcoholic Beverage Industry is a significant economic contributor, boasting a market size estimated at around $55 billion (USD) as of 2023. This market is projected to grow steadily, with a CAGR of 7% anticipated to reach $73 billion (USD) by 2027. Spirits hold the largest share of the market, accounting for approximately USD 34 billion in 2023, while beer, wine, and imported alcohol also contribute significantly. However, the industry also faces challenges related to its environmental impact. In recent years, there has been a growing focus on sustainability in the sector, with many companies implementing initiatives to Decarbonize their Industry.

Diageo India aims to significantly reduce its environmental impact. By 2030, they aim to cut water usage by 50% (already at 43% reduction in 2023), slash carbon emissions by 75% (currently at 56% reduction), and increase recycled content in packaging to 70% (up from 2020 baseline). Furthermore, Diageo India is pioneering in waste management, with a focus on achieving zero waste to landfill.

United Breweries Limited (UBL) demonstrates environmental initiatives. 19 breweries utilize agricultural waste as fuel, and 03 utilize wind energy for 75% of their power needs. Targeting 10-14% replacement with rooftop solar is also underway. Water conservation efforts include process optimization, rainwater harvesting, and a 50% efficiency improvement goal by 2030. In a circular economy approach, UBL works to reduce packaging waste and increase recycled content, partnering with a waste management company for used bottles. A total carbon footprint reduction of 3,351 tons was reported in FY 2016-17.

Companies are setting ambitious targets to reduce environmental impact through industry-wide collaboration, investment in clean technology and renewable energy, circular economy adoption, consumer engagement with green products, and continuous monitoring with ambitious goals are crucial for the industry’s sustainable growth and decarbonization journey. A comprehensive approach to sustainability, from achieving net-zero carbon emissions to water stewardship and waste management, sets a positive precedent for other industries to follow.

The story of Diageo India is not just about a company making a difference; it’s about setting a benchmark for industry leaders across sectors. CEOs and business leaders striving for sustainability can draw inspiration from Diageo India’s initiatives to implement meaningful changes within their organizations.


This post is a part of DIL Intelligence series from Energy Alternatives India (EAI), India’s leading climate-tech consulting firm.

DIL stands for Decarbonization for India’s Leaders and provides comprehensive market intelligence and updates to Indian corporate leaders on prominent decarbonization efforts across the Indian industrial ecosystem. DIL is provided by EAI’s strategy consulting team. More about our consulting from here.




About Narasimhan Santhanam (Narsi)

Narsi, a Director at EAI, Co-founded one of India's first climate tech consulting firm in 2008.

Since then, he has assisted over 250 Indian and International firms, across many climate tech domain Solar, Bio-energy, Green hydrogen, E-Mobility, Green Chemicals.

Narsi works closely with senior and top management corporates and helps then devise strategy and go-to-market plans to benefit from the fast growing Indian Climate tech market.

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