Scotch sales in India have witnessed a remarkable surge, nearly doubling over the course of the past two years. This substantial growth can be attributed to two primary factors: the rising consumption of Scotch among millennial drinkers and the gradual shift of the expanding middle class towards the more expensive variant of whisky.
According to industry executives and the latest data from global alcohol market analysts IWSR, the Scotch whisky market experienced a significant year-on-year growth of 33% in 2022, reaching a total of 7.5 million cases (nine litres each). In 2020, India alone consumed 3.9 million cases of premium whisky produced in Scotland.
These numbers encompass both internationally recognized Scotch whisky brands bottled in their country of origin and those bottled in India after bulk importation. Additionally, a substantial amount of Scotch whisky is imported in bulk and subsequently incorporated into local premium brands.
Diageo, the largest spirits company globally, has highlighted the versatility of its brands, catering to a wide range of price points and occasions. This approach has enabled them to attract both new and experienced consumers in the market.
“Indian consumers have preferred Scotch for its depth of flavours for generations. The young legal drinking age entrants continue to find that aspirational and have started discovering the versatility that Scotch gives to various occasions and serves,” said Shweta Jain, chief business development officer, premium, luxury, reserve and craft at Diageo India, which retails brands such as Johnnie Walker, Black Dog and Singleton. “We lead play in culture and continue to drive penetration in metros and boom towns alike.”
According to the latest data from IWSR, in 2021, India ranked second in terms of volume for Scotch imports, surpassing the United States and trailing only behind France. However, in 2022, India experienced a remarkable surge of 60% in Scotch imports, propelling it to become the top global export destination by volume. The report also highlights that the trend of premiumization is particularly pronounced in the Scotch category, surpassing any other beverage category. Over the past two decades, Scotch sales have multiplied twentyfold, showcasing its growing popularity and demand.
Industry executives have noted that premium whiskies, including Scotch, American versions, and Indian single malts, which were previously regarded as somewhat traditional, have gained popularity among millennial drinkers. This shift in preference can be attributed to the rising incomes of millennials, the versatility of these whiskies for cocktail mixing, and their easy accessibility through the proliferation of restaurants and establishments.
According to industry insiders, Scotch has historically been viewed as an aspirational beverage among Indians. They note that the accessibility and affordability of premium whisky have significantly improved since the relaxation of Covid-19 restrictions. In addition, a substantial portion of Scotch whisky purchases shifted from global travel retail to domestic retail in 2020, and this trend has largely persisted, indicating a sustained preference for purchasing within the domestic market.
“Premium products across spirits are under-indexed and this is a natural correction, accelerated by at-home drinking which made people shift consumption to less but better quality drinking,” said Sachin Mehta, country director-India and Indian subcontinent at William Grant & Sons, which owns Glenfiddich and Balvenie brands. “This progressive trend is also seen in Indian single malts, gin and even other premium whisky.”
As an example, American whisky sales experienced a substantial growth of 70%, while Irish and Japanese whisky sales witnessed increases of 81% and 53% respectively. In the overall category, sales of premium Indian whisky skyrocketed by 200%, with value and lower-priced products constituting approximately 96% of the total sales. These figures highlight the remarkable surge in demand for a diverse range of whiskies across different price points in the market.
Despite India holding the distinction of being the largest consumer of whisky globally, the volume share of Scotch whisky remains relatively low at 3.1%. This modest share is primarily attributed by industry executives to the significant hurdle of a 150% duty imposed on imported liquor, making it less accessible and thereby limiting its market presence.
