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Mixed bag for spirits this year?
Mint Mumbai
|January 04, 2024
Smaller regional companies are poised to hog the limelight with faster growth than their larger counterparts
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The Indian spirits market, which navigated through a complex year due to tax hikes, state elections, and policy shifts in 2023, is expected to see flat growth in 2024.
While major players are likely to find solace in the premium segment, smaller regional ones are poised to hog the limelight with faster growth than their larger counterparts.
The hangover from 2023's challenges could linger amid sharp tax increases in states such as Karnataka and the dampening effect of elections across nine states.
Despite an initial surge in Punjab following a new excise policy, the market has now hit a plateau. The impact of the festival season remains to be fully realized, with analysts expecting a tepid 5-6% growth.
Smaller brands could brew growth, while giants might focus on "value up-trading" and pushing premium options. The real action is expected to come from smaller regional players.
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