A Growing Number Of High-Net-Worth Indians Seeking Premium Products Leading To Heavy Demand For Luxury Scotch Whisky

India remains the fifth largest market for luxury scotch whisky. It has seen the fastest CAGR of all five countries at 16 per cent. It also showed the most buoyant consumption growth since the Covid pandemic

India's rising affluent class is fuelling a surge in high-end spirits sales, with scotch whisky and fine wines registering double-digit growth, outpacing consumption rates in the US and China, according to a Switzerland-based researcher.

"One subcategory where India surpasses China and is growing at double the rate of the USA over a five-year CAGR is scotch luxury whisky," Simon Joseph, a senior luxury brand builder and consumer experience expert based in Zurich, said.

Joseph, a researcher with Glion Institute of Higher Education, said that according to various data forecasts, the luxury scotch whisky market has been growing at 16 per cent CAGR up to 2024-end. Scotch whisky exports to India grew at a compound annual growth rate of 66 per cent up to 2022, outpacing the US, China, and other significant markets, Joseph said, citing data from the UK-based Scotch Whisky Association (SWA).

According to SWA data, the equivalent of 167 million bottles was exported to India in 2023, up 27 per cent from 2019.

"The US, in value, is still dominant in the consumption of scotch whisky; India now has the biggest consumption in terms of volume, just overtaking France. Scotland remains the biggest exporter of scotch whisky," he said.

Joseph helps companies in the luxury sector scale their brands and brand strategies for emerging and developing luxury markets. He recently completed an Executive Master's in Luxury Management at Glion Institute of Higher Education (GIHE), based in Montreux.

The findings were part of his "India as the Next Frontier for Personal Luxury" thesis submitted during his education programme.

GIHE is an institute under Sommet Education, known for luxury and hospitality education, which is becoming popular among Indian students seeking a global education in these sectors. Joseph said though a late entrant in the luxury spirits landscape, India is rapidly gaining prominence in the sector, emerging as the fifth-largest market for scotch luxury whisky. "India remains the fifth largest market for luxury scotch whisky with the USA in first position, followed by France, Singapore, and Taiwan, in that order. But India has seen the fastest CAGR of all five countries at 16 per cent. It also showed the most buoyant consumption growth during and after the Covid pandemic," he said.

Experts attribute this unexpected penchant for such luxury brands and fine wine to India's expanding economy and a growing number of high- and ultra-high-net-worth Indians seeking premium products, even in liquor consumption.

"Whisky drinking has become a social ritual in India. It is mostly enjoyed with friends and family during celebrations and functions," Joseph said.

Regarding rare and fine wines, although China is currently larger than India by USD value, fine wine sales soared 22.8 per cent CAGR in India, eclipsing China's single-digit growth, the researcher said in his thesis submitted to the Institute. He noted that this trend is growing and will persist, especially with India's expanding economy and increasingly discerning consumer base eager to indulge in premium products that reflect their aspirations and lifestyles.

According to the 2024 Hurun India Rich List, India has 334 billionaires, up 75 from last year. The UBS and Credit Suisse joint wealth report for 2023 also pegs HNWI growth at 69 per cent. Personal luxury in India is valued at Rs. 256,176 million (EUR 2,821 million). According to Euromonitor International, the Indian personal luxury market is set to grow over the next five years to Rs. 347,355 million (EUR 3,823 million) at constant prices, Joseph said.