Undeterred by price hike, liquor sales at nearly 400 mn cases in FY23

Whisky continued to register the biggest numbers and accounted for around 75 per cent of overall spirits demand

Indians consumed around 400 million cases of liquor in the financial year 2023, The Economic Times (ET) reported. One case of liquor means 12 bottles of alcohol. An increase in demand was registered for all the popular types of alcohol, including whisky, brandy, rum, gin and vodka. The demand was especially high for premium products.

The report said that the latest data from the excise department suggests a 12 per cent increase in liquor sales when compared to FY22, the report said.

An industry expert was quoted in the report as saying that we have been increasing prices to the highest level compared with the recent past in India. Registering sales growth in such conditions indicate strong demand. 

The fundamentals are very strong, and consumer confidence is high in terms of demographics, the expert said. He added that we are very ambitious for India in the short and mid-long term.

Whisky continued to register the biggest numbers, accounting for around 75 per cent of overall spirits demand. It also registered an impressive growth of 11.4 per cent despite a high base. 

After whisky, brandy stood second and accounted for 21 per cent of total liquor sales. On the other hand, rum had a share of 12 per cent in alcohol sales.

Citing data from the excise department, the report added, although on a small base, vodka and gin sales jumped 29 and 61 per cent, respectively.

The report said that around 12 states, including Rajasthan, Kerala, and some states in South India, have allowed price hikes enabling liquor companies to mitigate financial pressure. Telangana is among the biggest liquor consumers, and it emerged as an outlier in the trend by slashing prices. The price cut is expected to further bolster the demand.

While price rises are helping liquor companies, they also impact liquor sales on a mass level. Additionally, the market is seeing increased competition in the premium segment. Liquor companies are also struggling to offset the increase in the price of raw materials such as extra neutral alcohol, glass, and packaging material, the ET report said.