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Duty-Free Drops: India's Homegrown Spirits Soar
28 Jul
Summary
- Domestic liquor sales surged as international travel restrictions reduced duty-free purchases.
- Premiumization trends and increased drinkers fuel India's imported spirits market growth.
- Passenger numbers and beverage alcohol volumes are projected for significant future increases.
Global travel restrictions have significantly redirected premium and luxury liquor sales toward India's domestic retail market. This shift occurred as duty-free sales at Indian airports saw a reduction, leading consumers who previously purchased bottles abroad to increase their domestic consumption.
India's imported spirits market is experiencing robust growth, primarily fueled by premiumization trends, a larger number of drinkers, and aspirational demand. Imported spirits volumes have grown at a compound annual growth rate (CAGR) of 16% between 2019 and 2024, with Scotch whisky showing particular dominance.
Industry experts anticipate a significant rise in both passenger numbers and beverage alcohol volumes. Passenger numbers are expected to grow by over 50% in the next five years, indicating that Indian travelers will play a crucial role in the future success of global travel retail.
