Why Indian consumers are on the lookout for luxury brands
India is seeing explosive growth in its luxury sector, a boom which is set to have a halo effect on high end drinks sales. db reports.
India’s luxury market, which currently valued at US$17 billion, is set to more than triple by 2030, growing to upwards of US$85 billion, according to Fortune data. The World Bank has also hinted that years of GDP growth have turned India into the world’s fastest-growing major economy. This economic boost is set to assist in elevating the number of ultra-high-net-worth individuals in the country – people with a net worth of at least US$30 million – by an anticipated 50% by 2028.
Speaking to the drinks business, Noblewood Group head of travel retail department Vladimir Poriadin explained that “vodka flavoured with botanicals is another offshoot of premiumisation, which appeals to the mixologist or for a consumer looking for greater complexity from a drink. It is a way for us to offer something a little bit extra specifically for individuals looking for high end drinks”.
IndLux CEO François Grouiller recently said at one of the consultancy’s events that “the next 100 years will be marked by the rise of India, and we believe that the Indian century can become an opportunity for all”.
Describing the size of the opportunities the market presents, TFWA president Philippe Margueritte said: “India’s middle class stands at about 430 million, but it’s on the way up. From less than a third today, around 60% of Indians will be middle class by 2047, their incomes boosted by the sheer dynamism of one of the world’s fastest-expanding economies.”
Margueritte explained: “They love to travel” and also highlighted how “in 2024, outbound passenger numbers reached 70 million” but revealed that “with close to 40,000 new passports being issued every day in India, that figure is rising fast”.
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To add weight to the fact that this was going to have a big impact on the sector, he explained that “by 2028, we’re looking at more than 100 million international travellers from India”.
Margueritte also pointed out that among Indian Gen Z consumers who are now travelling “64% of them will actually be sharing photos or video-calling as they shop, discussing options and seeking others’ thoughts on what they see in-store”.
He reassured however that there were ways to garner attention however and suggested that brand owners look at getting creative.
Margueritte added: “Optics count a lot for this group, who are looking for visually striking, immersive environments that combine physical and digital elements”.
The ‘less but better’ drinking trend is pushing premiumisation among India’s middle classes, according to Pernod Ricard India MD Jean Touboul, but state regulations still pose obstacles.
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