India, embracing one of the world’s largest alcohol beverage market, is progressing and expanding on a daily basis. 2024 marks a crucial year for the industry wherein changes are driven by factors like premiumisation of alcohol, the presence of diverse demographics and a rapidly diversifying yet experimental consumer base. Contrary to the liking of imported products in India, the country has grown to represent and take pride in domestic craft gins and Indian single malts.
According to data, there has been an overall increase in percentages of spirits volumes amongst all categories and will grow in the future as well displaying an essential demand and momentum. India’s wide consumer base drives the upward trajectory of the market knowing that both international and local products are being enjoyed. Talking about the consumer base, it is predicted that with the country’s rise in working population, there will be a rise in middle class consumers, pointing to a median age in the future that would be of Legal Drinking Age (LDA).
India’s overall positive outlook is most definitely driven by its aspirational consumers with an intention to prioritise premium level products. ‘Premiumisation’ is consistent with a local and Indian touch. The trend indicates an increase in premium and above Scotch volumes, premium-plus malt Scotch in addition to Indian craft gins and Indian single malts. It is applaudable how Indian whiskies are now available in a similar price range that the imported ones are available in. Indian brands and companies proudly present their products that are of equally great quality, expressions and price range.
Among the various categories of spirits, the niche categories are being brought into the mainstream with an extensive growth in overall volumes. Japanese, Irish and American whiskies accounted for a very strong growth in the first half of 2023 along with Agave spirits. Overall development of the country has surely affected the statistics of growth bringing in urbanisation, more number of female drinkers and the growing acceptance of alcohol in general. Traditional options in the country soon enough would only be seen as one of the plenty options amongst other, new and unique entries into the market.
Positive changes in the country include increased investment in retail offerings. The experience of buying alcohol in the country is through rightly installed staffed outlets, licensed places, BYOBs and premium retail shops that offer all categories of alcohol. Moreover, not just imported products but local products also go through heavy tariffs, duties and other levels of taxation when going from one state to another. Nevertheless, there is a positive impact on importers and exporters looking forward to continuing to conclude FTAs with a prospect for all. According to recent evidence, Maharashtra could even cut down on excise rates which directly impact the overall growth in the market, making sure there is a momentum of revenues for domestic players and various states.
