Say cheers! India tops alcohol growth in H1

SALT LAKE CITY India has recorded the highest growth in total beverage alcohol (TBA) consumption among 20 global markets for the third consecutive first half-year period, according to data shared exclusively with TOI. As per global alcohol-focused industry research firm IWSR, TBA volume in India grew 7% year-on-year during the January-June period to over 440 million 9-litre cases. A 9-litre case, IWSR's standard measurement, equals 12 standard 750 ml bottles.

Within spirits, Indian whisky remained the largest segment, with volumes rising 7% year-on-year to more than 130 million 9-litre cases. Vodka grew 10%, rum 2%, and gin and genever 3%. "Indian whisky remains the dominant growth engine for the spirits category in India, driven by improving quality, an expanding consumer base, and favourable economic conditions. Spirits at the higher end of the standard price band and above are outperforming value spirits, reflecting the quality uplift across domestic distillers," said Sarah Campbell, IWSR head of research-Asia-Pacific. India's position at the top is based on percentage growth in TBA volume among all 20 markets IWSR tracks in its half-year report.

The other markets include China, the US, Brazil, Russia, Mexico, Germany, Japan, the UK, Spain, South Africa, Italy, France, Poland, the Philippines, Thailand, Australia, Canada, Colombia, and the Netherlands. IWSR's long-term forecast places India on track to become the fifth-largest alcohol market globally by volume. According to its projections, India is expected to overtake Japan in 2027 and Germany in 2033. This long-range forecast covers 31 markets. The four markets projected to remain ahead are China, the United States, Brazil, and Mexico.

Premium-and-above alcohol segments in India also outpaced overall growth, rising 8% by both volume and value in the first half of the current calendar year.

Ready-to-drink beverages grew the fastest among major categories at 11%, followed by beer at 7%, spirits at 6%, while wine remained flat. Irish whiskey rose 23%, agave-based spirits 19%, while US whiskey declined 10%, IWSR data showed. "India is increasingly one of the most important global markets for the beverage alcohol industry," Campbell said, adding that IWSR attributed the rise to consistent demand growth across categories and steady premiumisation trends. Scotch malts lost some share to Indian single malts., while blended Scotch remained stable. Brandy saw more flavoured variants and consolidation in southern states, and flavoured vodka continued to grow.