Indian alcobev industry witnesses slowdown

India's alcobev sector registered a decline of 2.2 percent in the second quarter of FY 2023-24, according to the latest excise data. This marks a reversal from the 7-15 percent growth trend observed in the sector over the preceding two years.

The reported slowdown can be attributed to various factors, including lower sales of mass-priced products, increased taxes, and a high base.

Reported data indicates varied volume changes: Whisky, gin, and vodka saw increases of 3-13 percent, while rum and brandy sales fell by 0.3 percent and 0.7 percent respectively. Whisky, constituting two-thirds of spirits demand, grew 3.2 percent despite a high base. Vodka surged by 13.1 percent, and gin sales increased by 10.6 percent, albeit on a lower base. Sales of mass-priced whisky experienced a decline of 4.5 percent. Meanwhile, premium products, particularly whisky, witnessed growth ranging from 4 to 18 percent.