Alcohol consumption trends changing: Tequila, gin in vogue as rum and vodka take back seat

Tequila, single malt whiskey, premium gin and ready-to-drink alcoholic beverages are now in vogue among Indian alcohol consumers. The old favourites like rum and brandy and vodka are taking a back seat.

Data from industry tracker IWSR Drinks Market Analysis shows that whiskey sales volumes, for instance, which had dropped 16 percent in 2020 due to lockdowns, are up over 4 percent in 2021. This is further expected to grow steadily over the next 5 years.

Tequila sales, similarly, are expected to grow at a CAGR of 12.6 percent between 2021 and 2025, having fallen 4.5 percent in 2019 and 47 percent in 2020. Beer and wine sales are also on track for positive growth numbers that are better than in 2019.

It's not just about a recovery from the pandemic. It is also about what consumers are demanding. Alcohol manufacturers and retailers say they are seeing a shift toward premium brands when it comes to spirits like tequila and gin and whiskey.

"People are actually open to trying and picking up brands which earlier they were sceptical about.  Gins have got a great response, tequila is a new fad where people really want more and more brands of tequilas," said Moksh S Saini, director at Living Liqudiz.

Experts attribute this shift to a host of reasons -- from higher social acceptance to enhanced awareness, to more in-home occasion-led consumption. Retailers are also tapping into the premiumisation trend and shops are transforming from the traditional cage-like-counters into experience centres.

Home delivery appears to be the next big bet for the liquor industry. Currently, only a few states like Maharashtra, West Bengal and Odisha permit home delivery of liquor and manufacturers are busy urging other state governments to follow suit. The argument they put is that this results in better sales for manufacturers and retailers and higher tax revenues for state exchequers.