India’s liquor landscape is undergoing a remarkable transformation as consumers increasingly venture beyond traditional whisky to explore wines and premium spirits. This wave of “premiumisation” signals a significant growth opportunity for brands like Moet Hennessy India, the subsidiary of global luxury leader Louis Vuitton Moet Hennessy.
A growing affinity for fine wines and spirits
Ipsita Das, Managing Director of Moet Hennessy India, highlighted this trend in an interview where he said, “Today, wines and spirits are becoming mainstream, and premiumisation is here to stay,” she stated. Indian consumers are evolving from classic whisky or gin-based beverages to experimenting with diverse spirits and wines.
The growing popularity of tequila, although at a nascent stage, further underscores this change in preferences. Indian consumers are becoming more discerning, aligning their tastes with global trends in luxury and indulgence.
Trade policies paving the way for growth
The industry’s expansion is further supported by ongoing Free Trade Agreement (FTA) negotiations, particularly with the United Kingdom. Such agreements have the potential to lower duty structures, making premium foreign liquors more affordable for Indian consumers.
“An FTA could really boost consumption by making these products more accessible to Indian consumers,” said Das. However, the high customs duty of 150% on imported alcohol, coupled with state taxes, remains a significant barrier. Das pointed out the disparity, explaining that a bottle of Moet & Chandon priced at 45 euros in Europe could cost approximately 100 euros in India due to these levies.
Made-in-India wines shine bright
Despite the challenges of high taxation, India’s domestic wine industry is flourishing. Moet Hennessy India’s Chandon line, offering still and sparkling wines, has carved a niche in the market, showcasing the shift in consumer preferences towards locally crafted premium products. “Our Indian wines are doing very well, reflecting the shift in consumer preferences,” added Das.
A promising future for India’s liquor market
With the rise of well-traveled and discerning consumers, India’s liquor market is poised for substantial growth. Potential policy reforms, coupled with a focus on premium offerings, will enable India to become a key player in the global liquor industry. As Indians continue to toast to quality and luxury, the future of the country’s liquor market looks increasingly sophisticated and promising.
