India will soon become world's biggest market for Scotch whisky
What's the story
India is set to become the world's largest market for Scotch whisky, both in volume and value, in the coming years. Mark Kent CMG, Chief Executive of the Scotch Whisky Association (SWA), made this prediction based on factors like competitive intensity, premiumization, and economic growth. He also noted India's growing single malt whisky segment and expressed interest in potential partnerships with Indian producers for global markets.
Market expansion
Indian single malts gaining international recognition
Kent highlighted the emergence of Indian single malts, some of which have recently won prestigious international awards. He plans to speak with the Indian Malt Whiskey Association as they both value quality in production and collaboration. This presents a major opportunity for both Indian and Scottish industries, with potential partnerships for exporting Indian single malts to the UK and other global markets.
Market dominance
India's growing Scotch whisky market
India has emerged as the world's largest Scotch whisky market by volume, exporting 192 million bottles. However, it ranks among the top five in terms of value. Kent is optimistic about India's future and its premiumization trend. He believes that with a growing Indian market and an increasingly competitive environment for Scotch imports, India could soon become the largest market in both volume and value terms.
Trade impact
Free trade agreement's impact on Scotch imports
Kent also spoke about the potential impact of the free trade agreement (FTA) between India and the UK on Scotch whisky imports. He expects a range of quality Scotch whiskies, especially from smaller Scottish producers, to flood into India once the FTA comes into effect. The import of bulk Scotch is also expected to rise, benefiting Indian manufacturers and bottlers.
Tariff reduction
FTA to affect pricing and boost sales
Under the FTA signed in London, India will cut duty on UK whisky and gin from 150% to 75%, and further to 40% in the deal's 10th year. Kent plans to discuss this with Indian authorities and trade associations for a mutually beneficial outcome. He hopes that the FTA will boost sales but acknowledged that external tariffs are just one part of pricing.