The rising influence of India’s alcobev industry

India’s alcobev industry, directly and indirectly, employs over 7.9 million individuals, informed Sanjit Padhi, CEO, International Spirits and Wines Association of India (ISWAI) during a session on ‘Indian Spirits Brands Going Global: Promotion and Innovation’ at World Food India 2024, which was held between 19th-22nd September 2024, in New Delhi.

 

At the exclusive session, industry experts discussed on the evolution and future of India's alcobev industry. Padhi led the session, and the industry experts shed light on India’s success in producing world-class spirits, particularly single malts, with globally renowned brands leading the charge. 

 

valued at US$52.4 billion, contributes significantly to India's economy, and accounted for nearly 2 percent of the nation’s GDP in FY21, ISWAI underlined in a statement.

 

Moreover, the Indian alcobev industry serves as a growth catalyst for related sectors like tourism, agriculture, retail and food processing, creating direct and indirect employment opportunities for millions while showcasing the significant potential for global expansion in the spirits segment.

 

Commenting on the growing alcobev sector at the session, Padhi  highlighted,  

 

Focusing on ‘Make-in-India’, Richard McCallum, Group CEO,UK India Business Council, said, 

 

Commenting on key challenges faced by the Indian alcobev industry towards ‘Make-in-India’ products internationally, Sridhar Pongur, COO, John Distilleries, said, 

 

One of the key highlights discussed is that the industry is confident that ambitious initiatives like the Business Reform Action Plan would enhance the Ease of Doing Business, particularly at the state level. These efforts will drive meaningful changes, such as greater pricing freedom and key reforms, helping India’s alcobev businesses operate more efficiently and subsequently, adding to the potential of increased growth and job creation.

India, already the fifth-largest global market for alcoholic beverages, is well-positioned to expand its footprint in the global alcobev market. The Indian spirits industry is transitioning from a price-sensitive mass market to one focused on value creation and premiumisation.

Indian single malts constitute a growing segment of the Indian spirits market. With their domestic sales of an estimated 3,50,000 cases, which is at par with that of imported malts, this segment demonstrates the country’s capacity for creating world-class products.