Premium spirits to drive India spirits market at 7.2% CAGR during 2021-2026

Liquor sales in India are set to record a double-digit growth in 2022, largely 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 at 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, and 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.”