India has witnessed a post-pandemic binge, reflected in a significant uptick in alcohol imports by 54% during FY23 (April-January). Furthermore, there has been a surge in the import of various fruits including tangerines, raspberries, blueberries, dragon fruits, and different types of cheese, with a 26% increase compared to the previous year.
A recent analysis has revealed that the imports of exotic foods have witnessed a 33% increase during FY23 (April-January) in comparison to the preceding fiscal year.
During FY23 (April-January), the imports of mandarins, encompassing tangerines and satsumas, witnessed a surge of 13.5% to reach $6.63 billion in value as compared to the previous year. It is noteworthy that the imports have increased 2.9 times when compared to the pre-pandemic period (FY20).
Likewise, concerning other fresh fruits, which include categories such as dragon fruits, imports surged by 24% to reach $23.15 million during FY23, in comparison to $18.67 million during FY22. It is worth noting that the imports of other fruits stood at only $14 million during FY20.
In FY23, the imports of caviar and its substitutes, while negligible, almost doubled to $0.14 million. Furthermore, the imports of preserved olives surged to $6.77 million, reflecting a 30% increase compared to FY20.
Experts attributed the trend to growing affluence and easing of constraints.
Madan Sabnavis, chief economist, Bank of Baroda, said, “People who have a lot of money are adding to consumption. This premiumisation is visible across all goods and services from a house to rudimentary goods like alcohol and liquor.”
Sabnavis provided an illustration of the airline industry, stating that while first and business class tickets are typically sold out, economy class seats remain available.
The phenomenon has been attributed to the younger population by Arpita Mukherjee, a professor at ICRIER, a research organization.
“When the economy is doing well, people tend to spend more, especially the young population, who have a taste for such things,” Mukherjee said. In the case of alcohol, the growth witnessed in FY23 was the highest witnessed in a decade.
Prior to the pandemic, the average rate of increase stood at 11%, however, since FY20, the compounded annual growth rate has been 14% per annum.
“Excise duty was halved in Maharashtra, as a result imported whiskey became cheaper than Indian whiskey. Delhi’s new liquor policy also helped increase demand for imported liquor” said Vinod Giri, Confederation of Indian Alcoholic Beverage Companies. Delhi-NCR and Maharashtra are the two biggest markets in the country, he added.
Whiskey imports have surged by 55% from the pre-pandemic period to reach $337 million, in contrast to $218 million in 2019-20. Over the past eight years, whiskey imports have tripled. Moreover, the share of whiskey in India’s total consumable alcohol imports has increased from 44.3% in 2015-16 to 63% during FY23 (April-January).
Imports of gin have witnessed a 12-fold increase, leading to a surge in its share from 0.5% to 2.5% during this period.
