Liquor sales in India are set to record double-digit growth in 2022, driven by the rising consumer demand for premium and super-premium spirits and the recovery in out-of-home consumption. To capitalize on this growing demand, liquor companies are expanding their premium spirits range. Consequently, India’s spirits market is projected to grow at a compound annual growth rate (CAGR) of 7.2% during 2021-26, forecasts GlobalData, a leading data and analytics company.
Suneera Joseph, consumer analyst, GlobalData, comments, “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 in GlobalData’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.”
With growing consumer willingness to pay a premium for high-quality alcoholic drinks, fueled by higher disposable incomes, brands are reshaping their portfolios to cater to the changing alcohol consumption patterns.
Joseph continues, “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. As consumers tend to drink and serve better on special occasions, they will lean more towards premium and super-premium alcohol.”
This trend is substantiated by GlobalData’s Q4 2022 survey, wherein 39% of Indian respondents purchased products made by foreign/global multi-national brands. In line with this, leading liquor companies such as Diageo-backed United Spirits, Bacardi India, Allied Blenders, and Distillers expanded their premium product lines during the year.”
Joseph concludes, “As the trend of premiumization across spirits categories continues to gain traction, brands introducing spirits at premium price points will have a significant competitive advantage.”