The Indian alcoholic beverage market is emerging as a significant contender in the global spirits arena, with homegrown products gaining international traction. Valued at $52.4 billion, this sector contributes nearly 2% to India’s GDP, serving as a vital economic engine that supports tourism, agriculture, retail, and food processing, while creating millions of jobs.
At the recent World Food India 2024, held from September 19-22 in New Delhi, industry leaders discussed the evolution of the Indian “alcobev” sector during a session titled “Indian Spirits Brands Going Global: Promotion and Innovation.” Sanjit Padhi, CEO of the Delhi-headquartered International Spirits and Wines Association of India (ISWAI), highlighted the nation’s achievements in crafting world-class spirits, particularly single malts.
The spirits industry is an economic powerhouse, boasting a domestic volume of approximately 390 million cases of branded spirits and contributing Rs 3.4 lakh crores in excise revenue. From 2019 to 2023, the overall spirits market experienced a CAGR of 2.6%, while the premium segment saw double-digit growth. This trend underscores rising disposable incomes and a shift toward premiumization, with premium spirits increasing their market share from 42% to 49%.
Padhi remarked, “The Indian Alcobev industry, directly and indirectly, employs over 7.9 million individuals. In addition, exports have experienced a significant surge, with a 16% increase in volume and a 20% increase in value in the past year, indicating a favorable shift in product mix. Imports are stagnant, and exports are growing at 22 %, and in the near future, we could become a trade surplus.”
Single malts have embraced the “Make in India” initiative, achieving domestic sales of about 350,000 cases, comparable to imported varieties. Padhi asserted the importance of innovation, quality, and research and development in fostering a robust “Make-in-India” ecosystem.
Richard McCallum, Group CEO of the UK India Business Council, described India as a crucial partner for the UK, encouraging collaboration under initiatives like ‘Make in India’ and ‘Aatmanirbhar Bharat.’
Sridhar Pongur, COO of John Distilleries, pointed to the need for better international visibility for Indian products, urging manufacturers to collaborate in promoting Indian whisky.
As the industry anticipates initiatives like the Business Reform Action Plan to improve the Ease of Doing Business, Padhi noted, “To sustain this growth, the industry looks forward to continued support from the government for export policy standardization, tax rationalization, and market access facilitation.”
With India positioned as the fifth-largest global market for alcoholic beverages, the spirits sector is transitioning toward premiumisation, successfully competing with international brands.
From: financialexpress
Financial News
