In the fiscal year 2022-23, the sales of Indian-made foreign liquor (IMFL) witnessed a significant growth of 14% in volume terms, reaching 385 million cases. Furthermore, premium IMFL products priced above Rs 1,000 per 750ml bottle experienced a remarkable surge of 48%. These statistics, released by the Confederation of Indian Alcoholic Beverage Companies (CIABC), suggest a promising recovery for the industry as sales figures surpass the pre-Covid levels of FY 2019-20 by nearly 12%.
The CIABC report indicates that the impact of the Covid-19 pandemic has now fully worn off, as evidenced by the robust growth in sales. The industry has displayed resilience and adaptability during challenging times, rebounding to achieve a significant recovery. With the current fiscal year underway, the CIABC predicts a further growth rate of 8%, projecting sales to reach approximately 412-415 million cases (9 liters each).
The post-pandemic recovery of the IMFL industry is attributed to multiple factors. One of the primary drivers behind this surge is the increasing demand for premium products. Consumers are increasingly gravitating towards higher-priced offerings, reflecting a shift in preferences and an inclination towards quality over quantity. The rise of a discerning consumer base, coupled with a willingness to spend on premium products, has fueled the impressive growth rate of 48% in this category.
Additionally, the relaxation of lockdown restrictions and the reopening of bars, restaurants, and hotels have contributed significantly to the rebound in sales. As the hospitality sector gradually resumes operations and consumer confidence improves, the demand for IMFL products has witnessed a substantial uptick. This trend is expected to continue as more people venture out for social gatherings and dining experiences.
Furthermore, the increasing disposable income of the Indian population has played a crucial role in driving the growth of the IMFL industry. As economic activities recover and incomes stabilize, consumers are willing to allocate a larger portion of their budget towards leisure and indulgence. The preference for IMFL products, particularly premium variants, showcases the evolving consumer aspirations and a desire for high-quality experiences.
The CIABC report paints an optimistic picture for the IMFL industry, highlighting the resilience and adaptability demonstrated by businesses in the face of adversity. The growth in sales, surpassing pre-pandemic levels, showcases the industry’s ability to rebound and meet consumer demands effectively. However, it is important to remain cautious and monitor ongoing developments, as the recovery process may still face potential challenges such as fluctuating market conditions and regulatory changes.
The IMFL industry in India has shown remarkable strength and resilience, bouncing back from the impact of the Covid-19 pandemic. With the current fiscal year projected to witness an additional growth rate of 8%, the industry is poised to reach new heights, catering to the evolving preferences of Indian consumers. As the recovery continues, stakeholders in the IMFL sector will need to stay attuned to changing consumer dynamics and adapt their strategies accordingly to capitalize on the burgeoning market opportunities.
