"It is difficult to pinpoint the reasons for the slowdown, even in states such as Uttar Pradesh which had recorded strong growth earlier," said Amar Sinha, managing director of Allied Blenders and Distillers (ABD), maker of Officer's Choice whisky...
MUMBAI: Growth in India's spirits market slowed to 4.6% year-on-year by volume in the September quarter from 6.4% a year earlier, with the weakness more pronounced in the mass-market segment that is particularly vulnerable to inflation, officials said citing excise data.
Industry executives said the slowdown for the second consecutive quarter is difficult to explain in certain states.
"It is difficult to pinpoint the reasons for the slowdown, even in states such as Uttar Pradesh which had recorded strong growth earlier," said Amar Sinha, managing director of Allied Blenders and Distillers (ABD), maker of Officer's Choice whisky. There are "no clear factors explaining the weakness," he said. Prestige and above (premium) spirits grew 5.7% in the September quarter while regular and other (mass) spirits expanded 3.7%. The overall market growth was higher than the 3% recorded in the preceding quarter. India's alcohol market remains heavily skewed toward lower-priced products. The country has more than 1.4 billion people, but its drinking population is estimated at around 300 million, with nearly half consuming low-cost or unbranded liquor, industry executives said.
"With the prolonged and continuing West Asia crisis, softer monsoons and inflation, consumer sentiment is not very upbeat," said Praveen Someshwar, managing director of United Spirits, the country's largest liquor company. "Rural may not have fully absorbed the impact of the weaker monsoon yet, but the bottom end of the urban consumer is feeling the inflationary pressure," he said.
Lower-income consumers, who form the target audience for the lower half of United Spirits' portfolio, are showing signs of fatigue as inflation squeezes household budgets, while middle- and higher-income consumers fare better, Someshwar said.
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The company's prestige and above net sales value grew 6.3% in the quarter, compared with 12.7% a year earlier. It also said its popular segment faced policy-related headwinds in Maharashtra and Karnataka.
ABD posted an 11.1% increase in volumes to 10 million cases.
The market's premium end has been more resilient, although growth has moderated.
United Spirits' mass-market liquor sales slump as inflation squeezes lower-income consumers, premiumisation takes centre stage2026-10-30T19:18:52Z
