Surging Popularity Of Imported Single Malts

The market for imported single malts in India is poised for a substantial growth and transformation. Factors such as the rise of affluent consumers, increased brand awareness, enhanced accessibility, and a growing tasting culture signal a prosperous future for this segment. Sumedh Singh Mandla, CEO of VBev, outlines the current status of single malts in India and its path to the future.

Higher disposable incomes in consonance with the growing Indian economy, better awareness, changing consumer preferences, premiumisation trend, global exposure, gifting culture, etc., are some of the key factors contributing to the acceptance and rising demand for single malt whiskies. Moreover, the coronavirus-triggered pandemic period further opened the doors for experimentation, and consumers are now open to trying new brands and categories.

While the pace of growth may vary due to economic factors and consumer trends, the foundations underlying the demand for imported single malt whiskies appear robust and are likely to support sustained interest in the segment. “There is a positive momentum and growth outlook for the coming years,” says Sumedh Singh Mandla.

Exploring Expressions

Indian consumers are open to exploring single malts from countries beyond traditional producers, driven by factors like global exposure, a growing whisky culture, enhanced accessibility, and a desire for diverse drinking experiences. This trend presents a significant opportunity for global whisky brands, particularly as the Indian market continues to mature and evolve. This is one of the reasons behind the good growth in Irish, Scotch, American and Japanese single malt whisky segments, besides Indian single malts, in the last few years. “Brands that focus on educating consumers and promoting innovative products can leverage this openness to capture a share of an expanding market,” Sumedh states.

VBev represents the Scotch single malt portfolio from the house of Whyte and Mackay in India. Its offerings include The Dalmore from the Highlands, Jura from the Isle of Jura and Tamnavulin from Speyside in domestic markets, as well as Fettercairn in travel retail. Furthermore, the company represents The Irishman, a distinguished Irish single malt whiskey from Amber Beverage Group. All these brands have gained in popularity over the past few years due to a shift in preference for single malts and premium brand whiskies.

Market Size 

According to IWSR, the volume for Scotch malt whisky is estimated at 347,000 cases in 2023 with a CAGR of 24.3 percent since 2018. The overall market for imported single malts in India is poised for substantial growth and transformation, says Sumedh.

With projections indicating significant growth over the next few years, imported single malts are likely to carve out a larger share of the overall alcoholic beverages market, reflecting the changing dynamics of consumer preferences toward premium spirits.

According to Sumedh, the outlook appears positive without expected doubledigit CAGR over the next five years. 

The Big Barriers

While a growing tasting culture signals a prosperous future for the single malt segment, there are certain challenges that pose as thorns for imported single malt whisky brands in India. These include high entry costs, tough label regulations, dual taxation, state-specific regulations, restrictions on marketing and advertising, etc. “Navigating India’s complex regulatory landscape is challenging, and these factors impact the availability and price positioning of the imported single malt brands,” states Sumedh.

The end consumer price depends largely on the respective state excise policy. The markets where the tax structure is more conducive, as for example, Haryana, have witnessed a larger offtake of the premium segment as the end consumer price is a lot more affordable, allowing a broader base of consumers to access premium offerings. The price band of ₹5,000-₹10,000 is the most appealing across markets as it offers a good balance between quality and affordability.

Sumedh is of the opinion that by advocating for policy reforms, simplifying regulatory processes, and increasing consumer awareness, stakeholders can manage price positioning and help create a more level playing field. Such efforts would not only benefit imported brands but also encourage a healthier overall market for all the whisky producers aiming to succeed in this growing market.