Make-in-India spirits poised for global growth; focus on global expansion, premiumization, innovation and collaboration
alcobev 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 spirits segment.
Valued at US$52.4 billion, the sector contributes significantly to India's economy, accounting for nearly 2% of the nation’s GDP (FY21).
This year, the growing acceptance of the sector was showcased by the participation at the World Food India 2024, organised recently in the capital. During a session on ‘Indian Spirits Brands Going Global: Promotion and Innovation', industry experts discussed the evolution and future of India's alcobev 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 crores. 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 premiumization, with the share of premium spirits rising from 42% to 49%.
Commenting on the growing alcobev sector, Sanjit Padhi, CEO, ISWAI said in a statement,
