Reforms Fuel Surge In Premium Liquor Sales

Hyderabad: India’s $52.4 billion spirits market is experiencing a shift towards premiumisation, a trend reshaping consumer behavior and driving growth. The overall alcoholic beverage sector, contributing nearly 2% to the country’s GDP, has seen modest growth, but the premium segment has flourished, now capturing nearly 49% of the market in 2023, up from 42% in 2019.

This growth is fueled by India’s rising disposable incomes, evolving consumer preferences, and greater global exposure. Scotch whisky, especially single malts, has seen impressive gains, with sales more than doubling in three years and single malts up 150%. The trend is reflected in retail transformations as high-end, large-format stores gain popularity, offering premium brands and enhancing consumer experiences.State-level policy reforms are also key to this expansion.

Andhra Pradesh’s new policies have led to a 28% increase in premium liquor sales, while Goa and Maharashtra have made moves to boost premium sales with tax reductions, driving substantial revenue growth. West Bengal and Uttarakhand have implemented similar measures, fostering further growth in the premium segment.Sanjit Padhi, CEO of ISWAI, highlighted how these reforms are creating opportunities for both consumers and manufacturers while promoting responsible drinking practices.