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Make-in-India spirits poised for global growth; Focus on premiumisation, innovation & collaboration
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Thursday, 03 October, 2024, 13 : 00 PM [IST]
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Our Bureau, New Delhi
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The Indian alcohol beverage market is poised as a key player in the global spirits industry, with products made in India rapidly gaining prominence internationally. Valued at $52.4 billion, the sector contributes significantly to India's economy, accounting for nearly 2% of the nation’s GDP (FY21).
The Indian alco-bev industry serves as a growth catalyst for related sectors like tourism, agriculture, retail and food processing, creating direct and indirect employment opportunities for millions while showcasing the significant potential for global expansion in the spirit segment.
This year, the growing acceptance of the sector is showcased by the participation at the World Food India 2024, during a session on ‘Indian Spirits Brands Going Global: Promotion and Innovation’ where industry experts discussed on the evolution and future of India's alco-bev industry. Sanjit Padhi, CEO, International Spirits and Wines Association of India (ISWAI), led the session, and the industry experts shed light on India’s success in producing world-class spirits, particularly single malts, with globally renowned brands leading the charge.
The sector is a critical economic driver, with an estimated domestic volume of 390 million cases of branded spirits and an excise revenue contribution of Rs 3.4 lakh crore. From 2019 to 2023, whilst the total spirits industry grew at a CAGR of 2.6%, the premium segment witnessed double-digit expansion. This shift reflects increasing disposable incomes and a rising propensity for premiumisation, with the share of premium spirits rising from 42% to 49%.
Padhi said, “The Indian alco-bev 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 favourable shift in product mix and positioning. Imports are stagnant, and exports are growing at 22 %, and in the near future, we could become a trade surplus.”
Indian single malts, a growing segment of the spirits market, have aligned themselves with the "Make in India" initiative. With domestic sales of an estimated 3,50,000 cases, which is at par with imported malts, this segment demonstrates the country’s capacity for creating world-class products.
Padhi said, “As India continues to show positive growth, it is crucial to drive innovation, quality, and R&D so as to create a thriving ‘Make-In-India’. We look forward to working with the Government of India in creating an ecosystem that will further boost exports.”
Richard McCallum, group CEO, UK India Business Council, said, “India is a pivotal partner for the UK. It is an investment destination, an export market, a source of technology and talent and an important supplier of goods and services. What happens in India matters for the UK and the world. We encourage UK businesses and stakeholders to engage with India in a collaborative spirit – one of genuine partnership - aligning with key initiatives like ‘Make in India’ and ‘Aatmanirbhar Bharat’.”
Sridhar Pongur, COO, John Distilleries, said, “The Indian government has done a fantastic job with the Make-in-India concept. We need to ensure that Indian products are known to the international community, and for this, we need to have experience-based sessions. For this, we require the embassy's support, and all manufacturers should come together for the single malts to promote Indian whisky as a category.”
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