Liquor Sales Surge by 14% in FY23

Indian-made foreign liquor (IMFL) witnessed a significant 14% surge in sales volume, reaching 385 million cases during FY 2022-23. Additionally, premium offerings priced above Rs 1,000 per 750ml bottle experienced an impressive growth rate of 48%, according to the industry body CIABC. These figures indicate a remarkable recovery from the impact of Covid-19, with sales surpassing pre-pandemic levels by nearly 12% compared to FY 2019-20.

The liquor industry is expected to continue its growth trajectory in the current fiscal year, projecting an 8% increase and reaching approximately 412-415 million cases (9 liters each).

Among different segments, whisky retained its position as the largest category, with an estimated sales volume of 243 million cases, contributing to 63% of the total industry sales.

Furthermore, the report from CIABC highlights the reversal of a long-standing decline in the Gin segment, indicating a resurgence in its growth. CIABC, serving as the apex body of the Indian Alcoholic Beverage Industry, made this observation.

The trend of premiumization persists in the liquor industry, as consumers increasingly opt for higher-priced offerings. The report notes that the higher price segments are experiencing faster growth compared to lower segments, with brands priced above Rs 500 per 750ml bottle now accounting for 20% of the market share. The premium segment priced at Rs 1,000 and above, primarily consisting of imported products, reported an impressive 48% growth.

While low-priced products below Rs 500 per 750ml bottle continue to dominate the market, accounting for 79% of total sales, the Rs 500 to Rs 1,000 segment contributed to 21% of sales. Imported and higher-priced offerings above Rs 1,000 represented 3% of the overall sales.

Notably, Indian products have witnessed a rise in market share within the Rs 1,000 and above segment, increasing from 18% to 20% in FY23. This indicates a faster growth rate for Indian products in this category compared to their imported counterparts, as stated in the report.