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India’s spirits sector to rise by double digits
The spirits market in India is expected to grow by double digits in 2022, driven by premium and super-premium segments, according to Global Data.
A new report by analytics company Global Data noted that spirits in India have also been boosted by the return of drinking in the on-trade.
Furthermore, the analyst predicts India’s spirits market will increase at a compound annual growth rate (CAGR) of 7.2% from 2021 to 2026.
Suneera Joseph, consumer analyst at Global Data, said: “Liquor sales rebounded strongly in 2022, supported by consumers growing preference for premium-priced brands, increasing footfall in bars and restaurants, and steady at-home consumption.
“This reflects Global Data’s Q4 2022 consumer survey, wherein 57% of Indian respondents said that their spending on spirits was very high/quite high/medium over the last three months.”
The size of India’s spirits market was INR 2.8 trillion (US$38.4 billion) in 2021, according to Global Data.
The top cities for spirits are Mumbai, Delhi, Kolkata, Bangalore, Chennai, Hyderabad, Ahmadabad, Pune, Jaipur and Kochi. Mumbai emerged as the largest spirits market in the country.
Global Data noted spirits producers are ‘reshaping’ their portfolio as consumers trade up to more premium bottlings, driven by higher disposable incomes.
“The post-Covid-19 pandemic increase in festive and outdoor occasions, social gatherings, marriage receptions and corporate get-togethers, without any restrictions, will further drive liquor sales,” Joseph added.
“As consumers tend to drink and serve better on special occasions, they will lean more towards premium and super-premium alcohol.”
Global Data’s survey in the fourth quarter of 2022, published in November, revealed 39% of Indian respondents purchased products made by international brands.
Diageo-backed United Spirits, Bacardi, and Allied Blenders and Distillers (ABD) have expanded their premium product lines during the year, the analyst noted.
Diageo’s Indian arm, United Spirits, recently completed the sale of 32 brands within its ‘popular’ segment to Inbrew Beverages, said to reflect the firm’s ‘sharpened focus’ on its ‘prestige and above’ portfolio.
Joseph said brands introducing premium-priced spirits would “have a significant competitive advantage”.
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