Sales of Indian-made foreign liquor (IMFL) have increased by 14% in volume terms to 385 million cases in FY 2022-23, according to industry body CIABC. The premium segment, which includes products priced over Rs 1,000 per 750ml bottle, grew by 48%. Sales are almost 12% higher than the pre-Covid levels of FY 2019-20, indicating a full recovery from the pandemic’s impact.
The Confederation of Indian Alcoholic Beverage Companies (CIABC) predicts a growth of 8% in the current fiscal year, ending around 412-415 million cases (9 litres each). The rise in sales is attributed to the growing middle and affluent classes in India, as well as increasing disposable incomes.
Despite the increase in sales, the industry has faced significant challenges, including increased government taxes and regulations and supply chain disruptions. The industry also faces criticism from anti-alcohol campaigns and health groups concerned about the negative impact of alcohol on public health.
The growth of the premium segment is particularly notable, as it suggests a shift in consumer preferences towards high-quality and luxury products. The demand for premium brands is driven by a desire for luxury and exclusivity, as well as the belief that higher-priced products are of superior quality.
The CIABC report highlights the importance of the alcoholic beverage industry to the Indian economy, with direct employment of over 2.5 million people and a significant contribution to government revenue through taxes and duties. The industry also supports several related industries, including agriculture, logistics, and packaging.
Overall, the Indian-made foreign liquor market is expected to continue to grow, driven by increasing consumer demand and expanding middle and high-income classes. The industry will need to navigate challenges such as government regulations and health concerns while meeting growing demand for premium and luxury products.
