India rises: international journey retail’s new star

India’s responsibility free and journey retail market is experiencing fast progress, making certain that the nation’s travellers are poised to play an important function within the sector within the years forward. Volumes are at the moment closely weighted to whisky – and Scotch particularly – however there are indicators of accelerating sophistication and class diversification.

According to IWSR knowledge, complete beverage alcohol (TBA) volumes in India journey retail elevated by +13% in 2024, with comparable charges of progress for spirits (+13%) and wine (+12%), in addition to a +123% quantity spike for the very small RTD class. That compares to a +6% enhance for TBA volumes in India’s home market.

India’s rise happens as international journey retail (GTR) is changing into an more and more vital driver of TBA progress at a difficult time for the trade: whereas IWSR forecasts predict that international TBA volumes can be basically flat between 2024 and 2029, TBA volumes in GTR are anticipated to develop at a CAGR of +3% over the identical timescale. For Asia (IWSR GTR forecasts are solely out there at a regional degree), the projected charge of progress is +4%.

“With Indian passenger numbers expected to grow by +50% over the next five years [source: Oxford Economics Air Passenger Forecast, 2 June 2025] and beverage alcohol volumes rising rapidly, it is clear that Indian travellers will be vital to the future success of GTR,” says Charlotte Reid, IWSR Senior Insights Manager – GTR.

“India’s disposable income and travel demands are growing faster than their global counterparts, and this will in turn reshape consumer spending and drive demand in GTR¹ . Indian consumers are changing from price- and utility-driven behaviours to brand consciousness and experiential spending, with Gen Z and Millennial consumers to the fore.”

The journey retail panorama in India is altering quickly, altering the steadiness between home and duty-free arrivals gross sales, provides Reid. “Many industry players believe that spirits selling at standard and premium price points will not return to travel retail on the same scale as before the Covid-19 pandemic, with pricing reviews in many states making such products more affordable in domestic retail. Investment by international brand owners in domestic distribution and marketing confirms these beliefs.”

At the identical time, in-store responsibility free experiences are more and more resonating with Indian passengers. Single malts, aged whiskies and craft gins at the moment are front-and-centre in Indian journey shops, each in arrivals and departures, catering to travellers searching for premium presents to take residence.

Meanwhile, international manufacturers are more and more pivoting to ‘India first’ methods, resembling Diwali-themed packs, or present packs with metropolis themes designed to draw the Indian shopper. Brands are additionally partnering with Indian celebrities to supply cultural relevance and interact with native customers.

The increasing relevance of GTR comes as India’s home beverage alcohol market is changing into more and more numerous: in response to IWSR Bevtrac shopper analysis, which surveyed shopper behaviour amongst city Indian adults, the typical variety of classes consumed in India rose from 6.9 in March 2024 to 7.2 in March 2025 as Indians expanded their repertoires and explored new choices.

However, this diversification is but to be mirrored on the journey retail scene, the place whisky – and Scotch particularly – proceed to dominate. According to IWSR knowledge, whisky accounted for 74% of India responsibility free spirits volumes in 2024, with Scotch taking a 65% share by itself.

Total whisky volumes in India responsibility free rose by +12% final 12 months, with Scotch up +11% and US whiskey rising by +8% – in distinction to the class’s efficiency within the Indian home market, the place volumes declined by -8% in 2024.

Indian whisky volumes in India responsibility free rose by +10%, with worth outstripping that efficiency with progress of +18%, however the class stays small in GTR, accounting for lower than 2% of complete whisky volumes within the channel.

“Indian whisky has relatively little shelf space in GTR – until about three years ago, it had virtually no presence in the channel – but this is beginning to change as consumers broaden their repertoires,” explains Reid.

“Nonetheless, brand ambassadors report that Indian passengers typically prefer purchasing Indian whisky in the domestic market. In contrast, Scotch and Bourbon are perceived as offering better value in GTR, making them popular choices for gifting purchases. The local duty-free environment remains dominated by Scotch.”

Like Indian whisky, whiskies from different origins are rising in India responsibility free, however off a small base. According to IWSR knowledge, Japanese whisky volumes in India responsibility free grew by +110% in 2024, and Irish whiskey volumes had been up by +51%, overtaking Indian whisky within the course of.

These indicators of accelerating diversification and class prolong past the whisky sphere: vodka gross sales by quantity in India responsibility free rose by +48% in 2024 – properly forward of home market progress of +17%.

However, gin volumes in journey retail had been flat (India home gross sales +4%), and agave spirits volumes elevated by solely +1%, versus a achieve of +28% within the home market, suggesting that their rising home reputation is but to translate into elevated duty-free listings and gross sales.

IWSR’s Bevtrac shopper analysis in India additionally suggests a slowly evolving image: in March 2025, 19% of drinkers of Indian whisky stated that they had bought this class in a duty-free retailer, up from 15% the 12 months earlier than.

However, this nonetheless lags properly behind Scotch, US and Japanese whiskies, the place the proportion of class drinkers who buy them in travel-retail is round one third.

“As India’s beverage alcohol market continues to evolve and diversify, non-Scotch whiskies from India and beyond, as well as other categories such as vodka, gin and agave spirits, are likely to make inroads in the country’s travel retail channel,” says Reid.

“However, the cachet offered by Scotch’s established credentials and aspirational status suited to gifting should cement its continued dominance in duty free for some time to come.”
¹YCP Auctus Report, ready for APTRA (the Asia Pacific Travel Retail Association)