Be it the central government or the state government, the sale of liquor brings considerable revenue. There is a reason for this. Both countries impose heavy taxes on alcohol, yet there is no decline in sales. However, there is also an area across the country where even one rupee is not taxed on alcohol, which is making a new record of selling liquor. In fact, not only the passengers flying from Indian airports, but also the brands of liquor are also selling fast. According to IWSR Drinks Market Analysis, India’s fee-free and travel retail business is estimated to increase by 13% in 2024, compared to the domestic beverage sector, while domestic shops have seen only 6% increase.
There has been a tremendous increase in sales.
Whiskey, which has a three-fourth stake in sales, has seen a 12% increase, while the performance of this category in the Indian domestic market has declined by 8%. GTR Senior Insight Manager, Charlotte Reid, at IWSR, said that the number of Indian tourists is expected to increase by 50% over the next five years, and the sale of beverages alcohol is expected to increase rapidly. As a result, Indian tourists will be important for future success of Global Travel Retail (GTR). This is happening at a time when GTR is becoming an engine of development for drink companies. It is noteworthy that the alcohol industry is currently experiencing stability in sales, while the global total beverage alcohol (TBA) consumption is expected to be stable between 2024 and 2029. IWSR hopes that GTR will increase by 3% and Asia will increase by 4%.
Why sales are increasing
India’s growing middle class, rising objective income and changing consumption patterns are giving new looks to retail mobility at airport terminals. Reid said that India’s purposeful income and travel demand is increasing faster than other countries, and this will change consumer spending and increase demand in the global consumer market. He further stated that Indian consumer value and utility-based behavior are moving to brand awareness and experienced expenses, with generations to play a leading role.
Amar Sinha, COO of Radico Khaitan, said in a media report that passengers are using their time at the airport to know brands, especially premium and luxury options. He further said that people have enough time to see and understand the brand before shopping at the airport. Airports around the world are a great platform to popularize brands, especially in premium and luxury segment.
How much did Scotch and Whiskey increase?
In 2024, Scotch sales increased by 11 percent and US value competitive benchmark sales increased by 8 percent, while Indian whiskey sales increased by 10 percent, while the price growth was even faster to 18 percent. However, the Indian whiskey remains a small player in GTR, which contributes less than 2 percent to the sale of whiskey. Reid said, “Until about three years ago, there was a relatively limited shelf space in Indian whiskey GTR, and it had almost no appearance in this channel. But as consumers are expanding their product options, the situation has started changing. In 2024, Vodka’s sales increased 48 percent – which is about three -fed more than the increase in domestic markets.”