Overview: Vikram Damodaran, chief innovation officer of Diageo India, outlines significant shifts in the regional spirits landscape, highlighting vodka and Tequila as primary growth engines while noting a consolidation phase for gin. The report emphasizes a transition from a whisky-dominated market to one driven by white spirits and differentiated experiences across the country.
The Full Story
Vikram Damodaran identifies vodka and Tequila as having massive opportunities for growth within the Indian market, while gin is expected to see a consolidation phase. Vodka presents the larger opportunity due to its big base, whereas Tequila sees the fastest rate of growth because of its very small base. The category benefits from its perception of being a low-calorie, cleaner drink, though Damodaran notes an appreciation for Tequila and its agave profile despite perceptions regarding hangovers.
Diageo’s Indian arm, United Spirits, maintains a gin portfolio that includes local labels Hapusa and Greater Than, alongside international brands Tanqueray and Gordon’s. In terms of its agave portfolio, Diageo focuses on Don Julio and recently appointed its first brand ambassador for Don Julio in India. The company also owns a minority stake in Indian agave spirit brand MayaPistola.
In the whisky segment, Diageo focuses on international Scotch Johnnie Walker alongside Black & White, Signature, Royal Challenge, and McDowell’s. The business tapped into the Indian single malt segment when it created the Godawan brand in 2022. IWSR data shows double-digit growth figures for both vodka and Tequila in India last year, with agave spirits forecast to continue rising by double digits.
Brand & Industry History
Diageo took ownership of Hapusa gin last year and control of Greater Than owner Nao Spirits during the same period. Regarding Indian single malts versus Scotch, whisky remains the leading spirit in India where Diageo focuses on international Scotch Johnnie Walker alongside Black & White, Signature, Royal Challenge, and McDowell’s. Scotch will also continue to grow because as more and more people start appreciating what a single malt stands for, again discovery is at the core of a single malt consumer. Indian single malts have slightly taken the lead compared with Scotch single malts, but there is growth happening on both ends.
What This Means
The business foresees a two- to three-year cycle for gin to come back after a period of consolidation and the advent of new gins in the country that will drive new trials and therefore growth in consumption. IWSR data shows gin sales by value in India grew by 11% last year and volume increased by 3%. Looking to 2030, its five-year CAGR projection puts gin at a 5% volume gain and a 7% value increase.
Scotch is expected to grow slightly ahead of Indian whisky over the next five years. IWSR data shows a 6% CAGR volume rise for Scotch (2025-2030) versus the 4% gain for Indian whisky. In terms of value, Scotch is set for a 5% increase and Indian whisky is forecast to grow by 4% over the same five-year period. The total volume of single malts sold in the country is somewhere between 850,000 cases to a million cases, while the total volume of spirits sold in the country is about 400 million cases.
Consumer Takeaway
Looking at the main alcohol categories, Damodaran says spirits, wine and beer are all growing consistently in India. Beer is recruiting faster than spirits and wine. But having said that, the world of spirits is changing a lot from what used to be a whisky-dominated market to now a market that is seeing growth across the spectrum, driven by white spirits. Last summer Diageo launched three flavoured Smirnoff vodkas designed for the evolving tastes of modern India. It comes in three flavours, the nostalgic Minty Jamun, the sweet-spicy Mirchi Mango, and Zesty Lime, which was made for group occasions and cocktail starters.
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