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Montreux (Switzerland): India's rising affluent class is fuelling a surge in high-end spirits sales, with Scotch whisky and fine wines registering double-digit growth, outpacing consumption rates in the US and China, according to a Switzerland-based researcher.
"One subcategory where India surpasses China and is growing at double the rate of the USA over a five-year CAGR is Scotch luxury whisky," Simon Joseph, a senior luxury brand builder and consumer experience expert based in Zurich, said.
Joseph, a researcher with Glion Institute of Higher Education, said according to various data forecasts, the luxury Scotch whisky market is also growing at 16 per cent CAGR up to 2024-end.
Scotch whisky exports to India grew at a compound annual growth rate of 66 per cent up to 2022, outpacing the US, China, and other significant markets, Joseph said, citing data from the UK-based Scotch Whisky Association (SWA).
According to the UK-based SWA data, the equivalent of 167 million bottles were exported to India in 2023, up 27% from 2019.
"The US, in value, is still dominant in the consumption of Scotch whisky; India now is the biggest consumption in terms of volume, just overtaking France. Scotland remains the biggest exporter of Scotch whisky," Joseph said.
Joseph helps companies in the luxury sector scale their brands and brand strategies for emerging and developing luxury markets. He recently completed an Executive Master's in Luxury Management at Glion Institute of Higher Education (GIHE), based in Montreux.
The findings were part of his "India as the Next Frontier for Personal Luxury" thesis submitted during his education programme.
GIHE is an institute under Sommet Education, known for luxury and hospitality education, which is becoming popular among Indian students seeking a global education in these sectors.
Joseph said though a late entrant in the luxury spirits landscape, India is rapidly gaining prominence in the sector, emerging as the fifth-largest market for Scotch luxury whisky.
"In luxury Scotch whisky, India remains the fifth largest market behind the USA in first position, followed by France, Singapore, and Taiwan. But India has seen the fastest CAGR of all five countries at 16%. India also showed the most buoyant Scotch whisky consumption growth during and after the COVID pandemic," he said.
Experts attribute this unexpected penchant for luxury Scotch whisky and fine wine to India's expanding economy and a growing number of high- and ultra-high-net-worth Indians seeking premium products, even in liquor consumption.
"Whisky drinking has become a social ritual in India. It is mostly enjoyed with friends and family during celebrations and functions," Joseph said.
Regarding rare and fine wines, although China is currently larger than India by USD value, fine wine sales soared 22.8% CAGR in India, eclipsing China's single-digit growth, the researcher said in his thesis submitted to the Institute.
Joseph noted that this trend is growing and will persist, especially with India's expanding economy and increasingly discerning consumer base eager to indulge in premium products that reflect their aspirations and lifestyles.
According to the 2024 Hurun India Rich List, India has 334 billionaires, up 75 from last year. The UBS and Credit Suisse joint wealth report for 2023 also pegs HNWI growth at 69%.
Personal luxury in India is valued at Rs 256,176 million (EUR 2,821 million), and according to Euromonitor International, the Indian personal luxury market is set to grow over the next five years to Rs 347,355 million (EUR 3,823 million) at constant prices, Joseph said.