In high spirits. Whisky emerges as top choice for younger consumers in India

Wine may be used as a metaphor for age, but it is whisky that seems to have rhymed with the spirit of the youth in India - also the largest market for whiskey in the world. Traditionally consumed by an older age group (between 45 and 60), the hard drink’s admirers now fall in their 20s, with a median age of 28. This, industry players said, is driven by the younger population’s ability to churn out disposable income.

• Also read: Indri becomes the only single malt whisky to sell over 1 lakh cases in its second year

“Generally, single malt whisky, especially in the UK, is perceived as an elderly gentleman’s drink - somebody above 50. That perception has changed. When we launched in Europe, the consumers were as young as 25. You can see the same trend in the US and India today. The younger generation is aspiring to drink better quality and less quantity. The demographics and the concept of premiumisation have changed to where it is not only older adults that enjoy single malts,” Rakshit Jagdale, Managing Director, Amrut Distilleries, told businessline.

Growing income

According to an industry report by Allied Blenders and Distillers Ltd of Officer’s Choice Whisky fame, India’s market is dominated by distilled spirits, with up to 90 per cent of pure alcohol consumption recorded in this category in FY22. “Growing income has a direct correlation with an increase in per capita consumption, and the whisky category being the largest in the Indian alco-beverage market will benefit the most from the positive demographic factors and growing income,” stated the report.

In the Indian Made Foreign Liquor (IMFL) category in FY23, the report added, whisky accounted for the largest share by volume at 59 per cent. Whisky consumption in the country was close to 243 million cases in that fiscal, making it one of the strongest categories that helped recover the alco-beverage market in India after COVID-19, said the report, adding that the Indian whisky market was valued at ₹1,50,880 crore in FY23 and is projected to reach ₹2,45,180 crore by FY 2028.

Bikram Basu, chief strategy & marketing officer of ABD, said, “India has advantages in a large demography for domestic consumption, a young population coming into the workforce with a relatively higher disposition to spend on experiences. The alcohol beverage market in the country has an estimated 11 million consumers inbound into the legal drinking age annually, which is 21 years of age in most Indian states. Whisky is a preferred flavour in India with a salience of around 64 per cent of the total industry, which has crept from 59-60 percent.”

He added that young adults are more financially independent, with younger parents finding drinking more socially acceptable than earlier generations. Urbanisation, nuclear families, exposure to global trends, and many other aspects have made younger consumers open to experimenting. Whisky has kept pace with changing trends, consolidating as the strong frontrunner, said Basu.

Another player, Paul P. John, Chairman of John Distilleries, said, “We find consumers of single malts getting younger. Earlier, they were between the age of 33 and 35. But now, consumers aged around 25 are leaning towards single malts. Our Paul John nirvana, which has a lower alcohol by volume (ABV), suits consumers shifting from blended whiskies to single malts.”

On a par with trends

Alco-beverage companies are also targeting younger consumers with the Do It Yourself (DIY) trend, promoting engagement through ready-to-drink versions of their popular brands and whisky-based cocktail ideas.

“We are observing an interesting shift in the demographics of whisky drinkers, particularly with DEWAR’S. Our consumers in India are now slightly younger compared to consumers of the broader Scotch category. The average age of DEWAR’S consumers in India is currently around 34 - 35 years. There are more women in our consumer base, indicating a broader appeal and evolving preferences within the whisky market,” said Vijay Dev, Category Lead - Global Whiskies, Bacardi.

Dev added that there are different ways of making alcohol more palatable and sociable. “What was earlier a serious drink, poured in a tumbler and on the rocks, can now be drunk with either coke or ginger ale. Our brand extension, called DEWAR’S Non-Alcoholic Mixer, can be added to a whisky to create a cocktail. So that way, it is making whisky more accessible to a larger audience, especially those who are entering the legal drinking age, or are in the initial stage of trying out new whisky.”