India’s love for homegrown single malts has been on the rise, shaking up the dominance of international spirits giants like Pernod Ricard and Diageo. With a significant increase in consumption and a growing preference for locally produced single malts, the Indian market is undergoing a transformation that is impacting the strategies and market share of these global players.
According to data from IWSR Drinks Market Analysis, Indian single malts experienced a remarkable growth of 144% in 2021-22, surpassing the 32% growth of Scotch whisky. This surge in popularity can be attributed to several factors, including the rising middle class, changing consumer preferences, and the emergence of high-quality Indian distilleries.
Pernod Ricard, the maker of renowned brands like Chivas Regal, Glenlivet, and Absolut, has recognized the potential of the Indian market. The company expects India to become its largest market globally, surpassing the United States. With India accounting for more than 10% of its global revenue and nearly a third of its global volume, Pernod Ricard is focusing on leveraging the country’s solid macroeconomics and demographic dividend. The company’s focus on premium and semi-premium brands, such as Blenders Pride and Royal Stag, has helped maintain its position in the market. However, the emergence of Indian single malts poses a challenge to Pernod Ricard’s dominance in the whisky segment.
While Pernod Ricard has been a dominant player in the Indian spirits market, it faces increasing competition from Diageo, Beam Suntory, and local distilleries such as Amrut and John Distillers. Diageo, in particular, has been expanding its presence in India and challenging Pernod Ricard’s market share. The competition between these global giants and homegrown players has led to a diversification of the market and an expansion of the offerings available to Indian consumers.
RTM Watch’s Take
The rise of homegrown single malts in India presents both opportunities and challenges for Pernod Ricard and Diageo. While the growth of Indian single malts may disrupt their market share, it also opens up new avenues for innovation and collaboration. These global spirits giants need to adapt their strategies to cater to the evolving preferences of Indian consumers and embrace the potential of the Indian market. By partnering with local distilleries or investing in Indian single malt brands, Pernod Ricard and Diageo can tap into the growing demand for premium Indian spirits and secure their positions in this dynamic market.
