Indians less drunk on liquor love after hike in taxes
Demand for spirits across segments slowed to 4% in the last calendar year, a sharp fall from 12% in 2022, after increased taxes, a high base and tipplers seemingly cut back on drinking. Whiskey, which accounts for two-thirds of the segment, grew 5.3% in volume, followed by brandy (2.7%) and rum (1.1%), industry executives said, citing the latest excise department data. Vodka and gin grew 18.8% and 15.3%, respectively, on a lower base.
«The demand environment has remained subdued — people are still experimenting,» United Spirits managing director Hina Nagarajan said on an investor call recently. «They are drinking more out of home and out-of-home prices are higher than sort of buying from off-trade and drinking at home. So, there is a little bit of impact on volume there.»
United Spirits expects the environment to persist over the next few quarters. «I think the real pressure on the wallet is on the lower side, where we do see upgrades are not happening from country liquor to popular or popular to the lower end of prestige,» she had said.
The country's spirits market saw sales volume of 409 million cases in the January-December period last year compared with 392 million cases in 2022. The overall spirits industry, after 12-15% growth in the post-Covid years, has normalised to a steady state, experts said. However, premiumisation has continued across categories, driving value growth even as there is pressure on volume. For instance, scotch has crossed the annual 9 million case sales mark and is expected to double
