By Sagar Malviya
Copyright indiatimes
It’s not just passengers taking flight from Indian airports-liquor brands are flying off the shelves too. India’s duty-free and travel retail volume growth outpaced the country’s domestic beverage sector in 2024 with 13% growth, compared to a 6% rise at local stores, according to IWSR Drinks Market Analysis.Whisky, which accounted for three-fourths of the volumes, saw a 12% growth in contrast to the category’s performance in the Indian domestic market, where volumes declined 8%. “With Indian passenger numbers expected to grow 50% over the next five years and beverage alcohol volumes rising rapidly, it is clear that Indian travellers will be vital to the future success of global travel retail (GTR),” said Charlotte Reid, senior insights manager, GTR at IWSR. This comes as global travel retail becomes an increasingly important growth engine for drinks companies, especially at a time when the wider alcohol industry faces stagnant volumes. While global total beverage alcohol (TBA) consumption is expected to remain flat between 2024 and 2029, IWSR expects GTR volumes to grow at a 3% compound annual rate and 4% in Asia.India’s expanding middle class, rising disposable income, and evolving consumption patterns are reshaping retail dynamics at airport terminals.”India’s disposable income and travel demands are growing faster than their global counterparts, and this will in turn reshape consumer spending and drive demand in GTR,” Reid added. “Indian consumers are changing from price- and utility-driven behaviours to brand consciousness and experiential spending, with Gen Z and millennial consumers to the fore.”Radico Khaitan chief operating officer Amar Sinha said travellers increasingly use airport dwell time to explore brands, especially premium and luxury options.Live Events”People have enough time at the airport to window shop and discover the brand before they buy,” he said. “Airports across the world are the best avenue to popularise brands, especially in the premium and luxury segment.”While Scotch grew 11% in 2024 and US whisky rose 8%, Indian whisky volumes increased by 10%, with value growing even faster at 18%. Still, Indian whiskey, however, remained a small player in global travel retail, representing less than 2% of whisky volumes.”Indian whisky has relatively little shelf space in GTR until about three years ago, it had virtually no presence in the channel but this is beginning to change as consumers broaden their repertoires,” Reid said. Beyond whisky, early signs of diversification are emerging. Vodka volumes grew by 48% in 2024-nearly three times the growth in domestic markets.However, industry players said the growing price competitiveness of domestic markets may limit the return of standard and premium spirits to pre-pandemic travel retail levels.Add as a Reliable and Trusted News Source Add Now!
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