Make in India is not just a slogan anymore, it has implications in real life in arenas of mobile phones to whiskey. In surprising news, Indian single malts whiskey has taken over foreign brands in sales in 2023. Previously the Indian whiskey market was dominated by foreign brands but now the market is seeing the growth of Indian brands.
What’s the news?
Demand for Indian single malts has surpassed demand for Scottish and other global brands for the first time, according to new data from the Confederation of Indian Alcoholic Beverages Companies (CIABC). Industry bodies estimate that Indian single malt will account for almost 53% of total sales in 2023.
Of the total sales of around 675,000 cases (9 litres each) of single malt in India last year, Indian-origin manufacturers sold around 4,444,444,345,000 cases, while Scottish and other international brands sold the remaining 330,000 cases.
Speaking to Times of India, CIABC director-general Vinod Giri described the news as a “milestone” and said that the growth of Indian single malts in 2023 was around 23%, compared to “a more moderate” 11% for Scottish and other international brands.
According to CIABC, the top-selling local single malts in India last year were Amrut Indian single malt and Paul John, while the top-selling global brands were Glenlivet and Macallan, followed by Lagavulin and Talisker.
In February 2022, it was reported that India had overtaken France as the world’s largest whisky market by volume, with 219 million bottles sold in 2022, compared to 136 million in 2021, according to SWA export data.
In addition, last year, the Indian single malt Diwali collector’s edition 2023 pipped hundreds of global brands to win ‘Best in Show’ Double Gold at the Whiskies Of the World Awards, a testament to India’s growing whisky industry.
Answering the news that interest for Indian single malts has outperformed that of Scottish and other worldwide brands unexpectedly, Ian McKendrick, Global Chief at the SWA told The Herald: “The Indian market is of huge importance to Scotch Whisky, with exports growing by more than 200% in the past decade alone. India is the largest whisky market in the world, however, Scotch Whisky has less than a 3% share, with the majority of the market led by Indian brands.”
International recognition of Indian single malt whisky
This trend is also attracting attention from global companies. London-based Diageo, the world’s second-largest alcoholic beverage company by value, launched Godawan, an Indian single malt, in March.
“Big global companies recognize the demand for indigenous single malt in India,” said Sanjeev Banga, an executive at Rampur maker Radico Khaitan.
“What more support could there be?
This ‘approval’ comes 20 years after the European Union refused to even recognize Indian whisky.
Historically, India faced grain shortages, but because sugarcane was produced in large quantities, liquor companies like Amrut, founded in 1948, relied on spirits made from molasses.
But the EU explained that this meant that what India passed off as whisky, was actually rum.
Currently, India is one of the world’s largest producers of wheat. Amrut launched India’s first single malt in 2004 in Glasgow and has since expanded across Europe.
The market entry into India took place in 2010.
Paul John took a similar route, launching its single malt in the UK in 2012 and to Indian consumers in 2013. Rampur was added in 2015.
Indri Trini, a new Indian single malt from the northern Indian state of Haryana, was launched last year and has already won international awards.
Indian whisky market
In the year 2023, The Indian whisky market reached a volume of 260.07 million cases. In the forecast period of 2024-2032, the market is expected to grow at a CAGR of 7.6% to reach 502.80 million cases by 2032.
South India is India’s major whiskey consuming region. Whiskey is widely consumed in Goa along with Chhattisgarh, Tripura, Punjab and Arunachal Pradesh.
India is not only a large consumer but also a major producer of whisky. Officer’s Choice Whiskey by Allied Blenders & Distillers Private Ltd Was one of the most consumed whiskeys in India.
Allied Blenders & Distillers has been recording strong sales across the country, particularly due to its Officer’s Choice Whiskey, extensive supply network and pan-India production reach with 43 production and bottling facilities.
The main reason behind the growth of the whiskey market in India is due to the changing lifestyle of the Indian citizens, thanks to the rapid urbanisation. The alcohol consumption is increasing, further helping in the growth of the market. The industry for whiskey is being driven by a strong demand for high-quality, premium alcoholic beverages with an increase in consumer purchasing power.
Conclusion
The whiskey market in India is seeing rapid growth with the Indian brands leading it. The market has a lot of space for further growth and hopefully, that growth will also be led by Indian brands.