India’s spirits market remained subdued in the first quarter, with overall volumes rising just 2%. Beer emerged as the clear outperformer, recording 17% volume growth despite higher taxes and seasonal disruptions.
Highlights
- India’s overall spirits volumes grew only 2% YoY in Q1.
- Whisky volumes declined 0.7%, reflecting weak demand.
- Brandy grew 6%, outperforming whisky and rum.
- Rum volumes slipped 0.7% during the quarter.
India’s alcoholic beverages market witnessed mixed trends in the first quarter, with spirits recording modest growth while beer volumes posted a strong double-digit increase.
According to industry data cited in the report, overall spirits volumes grew just 2% year-on-year in Q1, indicating subdued demand across some of the country’s major liquor categories.
Whisky, one of the biggest segments in India’s spirits market, saw volumes decline 0.7% from a year earlier. Rum volumes also fell 0.7%, pointing to weakness in some established categories.
Brandy, however, performed relatively better, recording 6% volume growth during the quarter. Vodka emerged as the fastest-growing spirits category, with volumes jumping 39%, although it operates on a comparatively smaller base.
Gin saw the sharpest decline, with volumes dropping 37% year-on-year.
The report attributed the muted spirits performance partly to developments in important markets such as Maharashtra and Karnataka. Maharashtra has reportedly seen overall demand remain subdued following changes in excise duties, while Karnataka witnessed price-related changes that affected market dynamics.
Seasonal factors also influenced consumption. Industry officials indicated that September is generally considered an important period for the alcoholic beverages market as festive demand begins to pick up.
Beer, meanwhile, stood out from the broader trend. Beer volumes surged 17% year-on-year, significantly outperforming the spirits segment. The growth came despite tax changes and market-specific challenges.
The divergence between beer and spirits highlights changing consumption patterns in India’s alcoholic beverages market during the quarter. While major traditional categories such as whisky and rum struggled to gain momentum, beer and vodka recorded significantly stronger growth.
Market participants will now be watching whether festive-season demand and improved consumption in key states can help revive overall spirits volumes in the coming quarters.
