Suntory taps into India’s Duty-free boom, boosts shopper focus

Indian travellers continue to shape global travel retail with their unique shopping behaviour; a striking 60 percent of those who walk into duty-free stores end up making a purchase and their average basket size is 30 percent higher than the global norm. This strong conversion rate, coupled with a rapidly growing outbound travel segment, positions Indian travellers as a high-value consumer group in the dutyfree landscape, particularly in the alcohol category. It’s no surprise then, that Suntory Global Spirits has made its most significant investment in India yet, aiming to tap into this upward trend in travel and spending. Ashish Gandham, Managing Director – Global Travel Retail, Suntory Global Spirits, speaks with Shalini Kumar about the brand’s India strategy and what makes the Indian duty-free shopper so pivotal to their global plans.

Pack your bags and get ready to go! That is the current psychological trend among people today and with travel becoming increasingly convenient, there are now very few places left unexplored or unseen. The travel industry, in fact, anticipates that the passenger numbers will continue to rise over the medium to long term, with a CAGR of 4 percent until 2030. This growth will depend on accelerated increases among certain nationalities, with Indian passengers playing a pivotal role, projected to grow by 9 percent in 2025 and nearly 6 percent annually until 2030.

On the flip side though, global retail trends reveal a slowdown in business momentum. Industry experts note that overall value growth in the channel is being hindered by lower penetration rates and a decline in average basket spend. These shifts are driven by macroeconomic factors and volatility stemming from an uncertain geopolitical landscape. Nonetheless, amid category headwinds and increased promotional activity, some bright spots remain. Consumers still show interest in exclusive products and are gravitating towards higher-quality, premium offerings, signalling a change in consumption patterns.

India’s Evolving Traveller

Indian travellers are increasingly seeking 360-degree experiences. The use of digital touchpoints for pre-travel searches and ‘click and collect’ services has surged. Airport lounges are emerging as significant engagement zones for affluent travellers, who now expect elevated instore experiences. All these trends are particularly pronounced in emerging and high-growth markets like India. A rising number of Indian travellers are opting for premium products — 59 percent purchase alcohol for personal consumption, indicating an ‘uptrade’ in behaviour.

Moreover, 17 percent of Indian travellers seek duty-free exclusives and special packs, a figure surpassing the global average. More young Indians are engaging in lounge experiences, and the high proportion of travellers at legal drinking age contributes to greater interest in in-store experiences that can drive purchases. “At Suntory Global Spirits, we remain focused on aligning with these shifts by enhancing our premium portfolio, investing in ‘digital-first’ solutions, and designing experiences that meet today’s travel consumers where they are,” says Ashish Gandham, Managing Director (Global Travel Retail), Suntory Global Spirits.

Decoding GTR Behaviour

Consumer preferences are shaped by multiple factors, including the demographic profile of travellers, economic conditions, and cultural relevance. These elements influence product category engagement, spending patterns, and attitudes toward travel retail. For instance, American whiskey still remains an emerging segment in Asia, while the luxury malts market is already well-established. Similarly, digital adoption and integration differ across geographies and nationalities.

Indian travellers stand out with some distinct behavioural trends like conversion rates are significantly higher, with 60 percent of shoppers entering duty-free outlets making a purchase. Their average basket spend is 30 percent higher than the global average. These indicators, combined with faster passenger growth, make Indian travellers one of the most important demographics in travel retail, especially within the alcohol category. Another notable trend is experimentation. Nearly 70 percent of Indian duty-free buyers purchase products they have never tried before.

Additionally, more than half of Indian travellers express a strong preference for travel retail exclusives or value offerings. Well-trained staff plays a crucial role in this dynamic, with data showing that 80 percent of staff interactions at Indian airports result in purchases. “These insights, spanning spending behaviour, value consciousness, openness to trial, and the critical role of staff influence, are core to how we are tailoring the Suntory Global Spirits’ experience for the Indian travellers,” says Ashish.

Increasing Consumer Dwell Time

Today’s travellers, armed with digital access and broader brand exposure, offer a unique opportunity for brands like Suntory Global Spirits. Mere presence at the point of sale is no longer sufficient. For Suntory’s premium portfolio, the focus is on creating compelling, immersive brand stories at the point of purchase or the ‘moment of choice’. This involves conveying the heritage, craftsmanship, and uniqueness of brands like Hibiki, Yamazaki, Maker’s Mark and Laphroaig through in-store narratives.

“Our aim is to make the bottle more than just a product and to make it a story worth engaging with. These stories also reflect our broader ‘growing for good’ philosophy, appealing to consumers who increasingly seek brands and products aligned to their personal values,” Ashish states. For Suntory Global Spirits, this means offering a curated range of sought-after products, including value options and travel exclusives, followed by the creation of in-store experiential zones where shoppers are encouraged to spend time.

These zones are enhanced through VR, sensorial experiences, and a blend of education and entertainment. In-store engagement is further supported by additional touchpoints throughout the airport, including media, lounges, and pre- and posttravel digital interactions. The objective is to stand out in a competitive travel retail environment and earn the loyalty of the increasingly discerning global traveller.

A Strong Performance

Suntory Global Spirits continues to deliver strong results in global travel retail, especially in its whisky portfolio, led by award-winning Japanese whiskies from the House of Suntory, single malts like Bowmore, and the craft bourbon Maker’s Mark. This momentum is fuelled by increasing global demand for premium spirits, successful collaborations with travel retail partners, and brand experiences that resonate with modern travellers.

The Asia Pacific region remains a vital growth engine, with India showing exceptional traction, particularly at Delhi and Mumbai airports. “This is fuelled by rising affluence, increasing exposure to global luxury, and a noticeable consumer shift toward premium whiskies. Strong recovery in international travel and higher passenger traffic is also playing a critical role, enabling us to tap into an audience that is increasingly seeking high-quality, differentiated offerings in the duty-free environment,” Ashish informs.

The Growth Curve

The Indian duty-free market is of critical importance to Suntory Global Spirits and is gaining significance rapidly. India’s travel retail landscape is dynamic and growing, particularly in the wines and spirits segment. “Our recent investment in the largest-ever GTR shop-in-shop boutique at Ospree Duty-Free in Mumbai underscores our strong commitment to this market and its future potential,” Ashish points out.

Looking ahead to the next two to three years, Suntory is optimistic about business growth in India. The increasing sophistication of consumer preferences aligns seamlessly with its premium portfolio. With international travel from India on the rise, Suntory is strategically positioned to capture a significant share of this expanding market. “Our active participation in industry forums like the APTRA India Conference further demonstrates our commitment to understanding and serving this dynamic market and reinforces our confidence in India’s travel retail landscape,” Ashish says.

Forging Alliances

Suntory Global Spirits recently inaugurated its largest-ever shop-in-shop at Mumbai airport arrivals, in partnership with Ospree Duty-Free, marking a pivotal moment in the brand’s India strategy. This builds on SGS’s existing high-impact presence in Delhi, where it features prominently at both departure and arrival zones with premium visibility and strategic positioning, further strengthening its footprint across key travel retail hubs. “As India’s financial capital, with the highest influx of millionaires, Mumbai offers a compelling market. The city’s substantial base of highnet-worth individuals (HNIs) and the high volume of sophisticated international travellers make it a crucial hub for premium brand discovery,” Ashish explains.

The collaboration with Ospree Duty-Free and the development of a new retail space offer a powerful platform to showcase the brand’s portfolio more impactfully. It allows for deeper engagement with consumers, supporting the goal of strengthening brand presence in India. Suntory’s approach of highlighting a multi-brand, cross-category portfolio in GTR aligns with its global objectives. By presenting a comprehensive range, the brand aims to create a onestop destination that maximises space efficiency and caters to diverse traveller preferences.

This strategy mirrors consumer trends of exploration, facilitates cross-category brand discovery, and helps cultivate long-term engagement with frequent flyers. For retailers, a consolidated offering simplifies procurement and boosts basket size, while transforming duty-free zones into compelling brand destinations. It leverages the high footfall of international airports as strategic platforms for brandbuilding and expanding reach.