INDIA’s growing affluent population is driving a significant rise in high-end spirits sales, with Scotch whisky and fine wines seeing double-digit growth, surpassing consumption rates in the US and China, according to research from a Switzerland-based expert.
"One subcategory where India exceeds China and is growing at double the rate of the USA over a five-year CAGR is Scotch luxury whisky," said Simon Joseph, a senior luxury brand builder and consumer experience expert based in Zurich.
Joseph, who is affiliated with Glion Institute of Higher Education, stated that according to various forecasts, the luxury Scotch whisky market in India is projected to grow at a compound annual growth rate (CAGR) of 16 per cent up to the end of 2024.
He further cited data from the UK-based Scotch Whisky Association (SWA), noting that Scotch whisky exports to India grew at a CAGR of 66 per cent up to 2022, outpacing the US, China, and other major markets. In 2023, 167 million bottles were exported to India, a 27 per cent increase from 2019, according to the SWA data.
"The US, in terms of value, remains dominant in Scotch whisky consumption. However, India is now the largest in terms of volume, just surpassing France. Scotland continues to be the biggest exporter of Scotch whisky," Joseph added.
Joseph works with companies in the luxury sector to expand their brands and strategies in emerging markets. He recently completed an Executive Master’s in Luxury Management at the Glion Institute of Higher Education, which is part of Sommet Education and known for its programmes in luxury and hospitality education.
His findings on India's rise in the luxury spirits market were part of his thesis titled "India as the Next Frontier for Personal Luxury." Despite being a relatively late entrant to the luxury spirits market, India is rapidly emerging as the fifth-largest market for luxury Scotch whisky, Joseph explained.
"In the luxury Scotch whisky segment, India ranks fifth, behind the USA, France, Singapore, and Taiwan. However, India has seen the fastest CAGR of all five countries at 16 per cent. The country also experienced the most robust growth in Scotch whisky consumption during and after the Covid-19 pandemic," Joseph said.
Experts attribute India’s increasing interest in luxury Scotch whisky and fine wines to its expanding economy and the rising number of high-net-worth individuals seeking premium products. "Whisky drinking has become a social ritual in India, particularly enjoyed with friends and family during celebrations," Joseph said.
Regarding rare and fine wines, Joseph pointed out that while China remains larger than India in terms of value, fine wine sales in India saw a 22.8 per cent CAGR, surpassing China’s single-digit growth.
This trend is expected to continue, with India’s growing economy and a more discerning consumer base seeking premium products that match their aspirations, Joseph noted. According to the 2024 Hurun India Rich List, India has 334 billionaires, an increase of 75 from last year. Additionally, the UBS and Credit Suisse wealth report for 2023 estimates high-net-worth individual growth in India at 69 per cent.
India’s personal luxury market is valued at £2,298 million and is expected to grow to £2,850 million over the next five years, according to Euromonitor International, Joseph concluded.
(With inputs from PTI)
