INDIA – Sales of premium imported whiskies, including Scotch, Japanese, Irish, and American varieties, experienced a significant slowdown in 2023, indicating a softening demand for high-end liquor products.
According to a report by the International Wine and Spirits Record (IWSR), the growth of Scotch and US whiskey, the largest categories, fell to 7 percent in 2023, compared to 33 percent and 70 percent, respectively, in the previous year.
Irish whiskey growth tapered to 40 percent from 81 percent a year ago, while Japanese whisky saw its growth plummet to just 3 percent in 2023 from 57 percent in 2022.
The decline has been attributed to supply constraints, especially for bulk Scotch, a focus on high-end products, and the impact of a high base effect amid rising cost-of-living expenses.
Pernod Ricard noted that the current growth rate reflects the industry’s transition to more stable growth patterns.
Jean Touboul, CEO of Pernod Ricard India, highlighted the persistent imbalance between high demand for older whiskies and their limited supply due to the meticulous and time-consuming aging process. This supply constraint continues to impact sales despite sustained high demand.
“Consumers are having less but better whiskey, a trend most companies have been focusing on as an industry,” said Sachin Mehta, Country Director of William Grant & Sons.
Despite the moderate overall growth, the trend of premiumisation continues to drive significant value growth in the market.
Within the imported whiskey segment, premium and super-premium brands have performed well, while entry-level brands, which primarily compete with Indian malts, have struggled.
In 2022, Indians consumed over 7.5 million cases of Scotch whisky, nearly double the consumption in 2020. Between 2020 and 2022, Irish whiskey grew fivefold, Japanese whisky sixfold, and American whiskey threefold, reaching a combined 500,000 cases from 150,000.
“It is very difficult to sustain this kind of growth as a percentage,” said the CEO of a large global liquor company. “But we are still growing in the high single digits despite issues in a few states such as Telangana and Delhi, which saw supply disruptions and restrictions.”
The past few years have seen the rise of Indian malts like Piccadily Agro’s Indri. Multinational companies like Pernod Ricard and Diageo have expanded their portfolios to include Indian brands such as Longitude 77, Epitome Reserve, and Godawan, alongside their imported single malts.
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