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.
Liquor mimicked the overall consumer discretionary segment, where sales of products such as apparel, footwear and beauty slowed in India in 2023 after two years of pandemic-induced runway growth. The spirits segment had also seen a record surge in the prices of raw materials such as extra neutral alcohol, glass and packaging material a year ago, which have softened now. Grain prices, however, have surged over the past two quarters, squeezing margins.
The Indian spirits industry experienced a slowdown in demand to 2.2% in the quarter ended September, reversing a 7-15% growth trend over the past two years. The industry s growth was impacted by lower sales of mass-priced products, increased taxes, and a high base. Whisky remained the largest segment, accounting for two-thirds of overall spirits demand, growing 3.2% on a high base between July and September.
Liquor Sales India: The Indian spirits industry experienced a slowdown in demand to 2.2% in the quarter ended September, reversing a 7-15% growth trend over the past two years. The industry s growth was impacted by lower sales of mass-priced products, increased taxes, and a high base. Whisky remained the largest segment, accounting for two-thirds of overall spirits demand, growing 3.2% on a high base between July and September.