IWSR: India vital to GTR success
Spirits volumes in India travel retail grew by 13% last year according to IWSR data, with the country poised to play a crucial role in the segment’s success.
According to Oxford Economics, the number of Indian travellers is expected to double over the next five years.
IWSR data found that the country’s 13% increase in spirits volume for travel retail last year was ahead of the 6% growth in its domestic market. Total beverage alcohol (TBA) volumes in India’s travel retail channel also rose by 13% in 2024.
IWSR suggests that India’s rise in travel retail will be a significant growth driver for the industry, with global alcohol volumes expected to be flat between 2024-2029.
According to IWSR, TBA volumes in global travel retail (GTR) are expected to grow at a CAGR (compound annual growth rate) of 3% over the 2024-2029 period, with Asia’s growth projected at 4%.
Charlotte Reid, IWSR senior insights manager – GTR, said: “With Indian passenger numbers expected to grow by 50% over the next five years [source: Oxford Economics air passenger forecast, 2 June 2025] and beverage alcohol volumes rising rapidly, it is clear that Indian travellers will be vital to the future success of GTR.”
Reid also highlighted the shift in India’s spending habits, with more people in the country showing a desire to travel, higher disposable incomes, and Gen Z and Millennial consumers switching from price to conscious-driven choices.
She noted that Indian travel retail stores are reacting and now showcasing single malts, aged whiskies and craft gins at the front of their spaces.
On the changing travel retail landscape in India, Reid explained: “Many industry players believe that spirits selling at standard and premium price points will not return to travel retail on the same scale as before the Covid-19 pandemic, with pricing reviews in many states making such products more affordable in domestic retail. Investment by international brand owners in domestic distribution and marketing confirms these beliefs.”
IWSR added that global brands are also pivoting towards ‘India-first’ strategies with Diwali-themed packs, gift sets with city themes and partnerships with Indian celebrities, in response to the country’s increasing relevancy in travel retail.
Scotch dominates Indian airports
According to IWSR, whisky accounted for 74% of India’s duty free spirits volumes in 2024, with Scotch taking a 65% share.
Indian whisky volumes in local duty free were up by 10% last year, with value rising by 18%. IWSR noted that the category represented less than 2% of total whisky volumes in India travel retail.
Reid added: “Indian whisky has relatively little shelf space in GTR – until about three years ago, it had virtually no presence in the channel – but this is beginning to change as consumers broaden their repertoires.
“Nonetheless, brand ambassadors report that Indian passengers typically prefer purchasing Indian whisky in the domestic market. In contrast, Scotch and Bourbon are perceived as offering better value in GTR, making them popular choices for gifting purchases. The local duty free environment remains dominated by Scotch.”
While Scotch still dominates India’s travel retail space, IWSR noted there are signs that local travellers are beginning to expand their spirits choices.
In 2024, Japanese whisky volumes in India duty free soared by 110% according to IWSR, while Irish whiskey volumes skyrocketed by 51%, albeit off a small base.
Additionally, vodka grew by 48%.
Gin, however, was flat, and agave spirits were up by only 1% (compared to an increase of 28% in the domestic market). This showed the growing popularity of agave spirits domestically hasn’t yet translated in increased duty free listings and sales.
Reid concluded: “As India’s beverage alcohol market continues to evolve and diversify, non-Scotch whiskies from India and beyond, as well as other categories such as vodka, gin and agave spirits, are likely to make inroads in the country’s travel retail channel.
“However, the cachet offered by Scotch’s established credentials and aspirational status suited to gifting should cement its continued dominance in duty free for some time to come.”
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