Surge in Premium Liquor Segment Sales: Impressive 48% Growth Driven by Products Over Rs 1,000
The Indian liquor industry has shown remarkable resilience and recovery in the fiscal year 2022-23, as reported by the Confederation of Indian Alcoholic Beverage Companies (CIABC). Sales of Indian-made foreign liquor (IMFL) surged by 14% in volume, reaching 385 million cases, while premium products priced above Rs 1,000 per 750ml bottle experienced a substantial growth of 48%. These figures indicate a significant rebound from the pre-Covid levels of FY 2019-20, surpassing them by nearly 12%. The CIABC anticipates further growth of 8% in the current fiscal, projecting sales to reach approximately 412-415 million cases (9 liters each).
:Whisky Reigns Supreme as Indian Liquor Industry Thrives, Expanding Premium Segment Beckons
The Indian liquor industry is experiencing a period of prosperity, with whisky emerging as the dominant segment, accounting for 63% of total sales. The CIABC report highlights the industry’s growth trajectory, revealing an anticipated sales volume of 243 million cases for whisky alone in FY23. Notably, gin, after witnessing a decline for several years, has now reversed the trend and returned to a path of growth, according to the CIABC. The trend of premiumisation continues to shape the industry landscape, as consumers exhibit a preference for higher-priced offerings. The report underscores the remarkable growth of the premium segment, with brands priced above Rs 500 per 750ml bottle constituting 20% of the market share. Furthermore, the premium segment above Rs 1,000, largely comprising imported products, witnessed an impressive 48% surge. It is worth noting that the share of Indian products in this price range has also increased, showcasing faster growth compared to imported counterparts. Despite the dominance of low-priced products, which comprise 79% of total sales, the upward trajectory of the Indian liquor industry remains evident, bolstered by a resurgence in premium offerings.
Indian Liquor Industry Bounces Back Strongly, Defying Pandemic Impact
In a remarkable comeback, the Indian liquor industry has demonstrated its resilience by registering robust sales growth in FY 2022-23. According to the Confederation of Indian Alcoholic Beverage Companies (CIABC), the industry has rebounded to a level surpassing the pre-Covid era, with sales volume rising by 14% to reach an impressive 385 million cases of Indian-made foreign liquor (IMFL). This surge is a testament to the fact that the lingering impact of the pandemic has now dissipated
Premiumization Wave Sweeps the Indian Liquor Market, Propelling Growth
The Indian liquor market is witnessing an exciting transformation driven by the trend of premiumization. Consumers are increasingly gravitating towards high-end offerings, as indicated by the 48% growth in the sales of premium products priced above Rs 1,000 per 750ml bottle. The Confederation of Indian Alcoholic Beverage Companies (CIABC) highlights that this shift towards premium segments has propelled the overall growth of the industry, with the market expanding by 8% in the current fiscal year. This surge is projected to culminate in sales reaching a staggering 412-415 million cases (9 liters each), further solidifying the upward trajectory of the premium liquor segment.
Regional Dynamics Shape the Indian Liquor Industry’s Growth Landscape
While the Indian liquor industry thrives nationwide, the Confederation of Indian Alcoholic Beverage Companies (CIABC) sheds light on the regional variations in sales performance. The Western region emerges as a growth leader, boasting an impressive 32% increase in sales volume. The Eastern region follows closely with a commendable 22% growth, while the Northern and Southern regions contribute with 16% and 9% growth, respectively. Notably, the Southern region retains its position as the largest contributor to sales volume, commanding a significant 58% share. These regional dynamics reflect the diverse preferences and consumption patterns of consumers across different parts of the country.
Indian Liquor Industry Charts New Path of Progress, Overcoming Challenges
Amidst the challenges posed by regulatory changes and market disruptions, the Indian liquor industry has navigated through turbulent waters with resilience and adaptability. Despite the hurdles, the industry has managed to maintain a healthy annual growth rate of 36% year-on-year in the capital city of Delhi. However, the Confederation of Indian Alcoholic Beverage Companies (CIABC) acknowledges that sustaining this growth momentum requires appropriate regulatory interventions in certain states such as Uttar Pradesh, West Bengal, and Delhi. Nonetheless, the CIABC remains optimistic about the industry’s overall outlook, expecting it to conclude the fiscal year 2023-24 with a growth rate of 7-8% and sales volume reaching around 412-415 million cases, setting the stage for a promising future.
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