Beer Outpaces Spirits as Tax Changes Shift Consumer Preferences
What Happened
India's spirits market grew just 2% in the June quarter, while beer sales surged 17% year-on-year. Whisky, which accounts for nearly two-thirds of the spirits market, declined 1%, while beer gained traction across major markets such as Maharashtra and Karnataka.
Key Takeaways
Industry executives attribute the shift to state-level tax hikes on Indian-made foreign liquor (IMFL), while beer prices were largely left unchanged or reduced in some states. Beer has also benefited from summer demand and favorable excise policies, with sales rising 42% in Maharashtra and 35% in Karnataka.