In spite of the growing popularity of wine and gin consumption in recent times, whiskey continues to reign supreme in the Indian liquor market, particularly in the affordable under INR 750 per bottle segment.
According to the most recent data from the global agency IWSR, whiskey dominates nearly two-thirds of spirits sales in India. Among the various whiskey brands, a staggering 85% of the market share is currently held by 10 domestic brands, which primarily operate in the lower price range.
Currently, imported whiskey accounts for approximately 3.3% of the total whiskey market share in India. Projections indicate that this share is expected to increase to 3.7% by the year 2027. Despite this growth, the data highlights that Indian-made whiskey will continue to dominate the market, with a substantial hold of over 96%, even after an estimated 3.8% growth over the next five years.
The most recent figures demonstrate a remarkable recovery for the business, as it successfully rebounded from the impact of the Covid-19 pandemic. Notably, Vodka has experienced a robust resurgence with a remarkable 34% increase in sales. This impressive growth can be attributed to the popularity of flavored varieties, which have been a significant driving force behind the surge in demand.
India ranks as the fifth largest market globally for alcoholic beverages, with an estimated total worth of approximately $53 billion. Over the coming five years, domestic consumption is anticipated to play a significant role in driving the industry’s growth. Among the various segments, ready-to-drink beverages have emerged as the fastest-growing category, experiencing an impressive surge of nearly 40% in the previous year. Projections indicate that this segment will continue to expand at double-digit rates over the next five years.
The wine segment is expected to be the second fastest-growing category, with a projected growth rate of 6.6%. It is worth noting that nearly one-fifth of the wine consumed in India comes from imports. Following wine, spirits are anticipated to grow at a rate of 3.7%, while beer is expected to experience growth at a rate of 2.7%, according to data from IWSR.
Although specific figures are not currently available, it is expected that imported wine from countries like Australia and the European Union might gain a larger market share due to the existing free trade agreements. Conversely, in the whiskey sector, where the UK is actively pursuing tariff reductions, the domestic industry is expected to play a crucial role in driving growth.
This is despite some of the imported whiskeys seeing a rapid rise, although it has come over a small base.
“There is a growing trend of new whiskeys being explored by Indian consumers. While scotch leads, the new players on the table are Irish, US, Japanese and Canadian whiskies. And of course, Indian Single Malts too,” said Nita Kapoor, CEO, International Spirits & Wines Association of India.
