India's middle-class is drinking more and spending on premium alcohol


The rising affluence of India’s middle class will drive growth of as much as 10 per cent a year in the $33 billion spirits market, according to one of the nation’s oldest distillers.

After three years of stagnation when the industry faced sales restrictions, Indians are drinking more and spending on premium alcohol, said Abhishek Khaitan, the managing director of Radico Khaitan Ltd., a market leader in vodka with its Magic Moments brand. The trend will likely continue as urban dual-income families in the nation of 1.3 billion follow peers in the U.S. and Singapore when it comes to eating and drinking out, he said.

India’s spirit sector -- which includes whiskey, brandy, rum and vodka -- is estimated to expand 25 per cent to Rs 2.92 trillion ($41 billion) by 2022, according to Euromonitor International. The country is among the world’s most attractive alcohol markets and should increase its share of global consumption from about 2 per cent given high single-digit to low-teen growth, according to a report from brokerage Nirmal Bang. Read More


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