India’s Travel Retail Alcohol Market Sees Rapid Growth as International Air Travel Rebounds

India’s travel retail market is gaining global attention as a key driver of growth in the beverage alcohol sector. Recent data from IWSR, a leading industry research firm, shows that total beverage alcohol volumes in India’s travel retail increased by 13% in 2024. Spirits and wine both saw similar growth rates, while the ready-to-drink (RTD) category, though still small, surged by 123%. This outpaces the 6% growth seen in India’s domestic beverage alcohol market.

The rapid expansion comes as international air travel rebounds and Indian passenger numbers are projected to rise by 50% over the next five years, according to Oxford Economics. This surge positions Indian travelers as a crucial demographic for global travel retail (GTR), especially at a time when worldwide beverage alcohol volumes are expected to remain flat through 2029. In contrast, GTR volumes are forecasted to grow at a compound annual rate of 3%, with Asia leading at 4%.

Charlotte Reid, Senior Insights Manager for GTR at IWSR, notes that India’s growing disposable income and increasing appetite for travel are reshaping consumer behavior. Younger generations, particularly Gen Z and Millennials, are moving away from purely price-driven choices toward brand awareness and experiential spending. This shift is evident in the changing landscape of India’s duty-free stores, where premium products like single malts, aged whiskies, and craft gins are now prominently displayed.

International brands are responding with targeted strategies. Many have introduced Diwali-themed packaging or city-specific gift packs to appeal to Indian shoppers. Collaborations with local celebrities have also become more common as brands seek cultural relevance and deeper engagement with consumers.

Despite these changes, whisky—especially Scotch—continues to dominate India’s duty-free spirits market. In 2024, whisky accounted for 74% of duty-free spirits sales in India, with Scotch alone making up 65%. While total whisky volumes grew by 12%, Scotch rose by 11%, and U.S. whiskey increased by 8%. Interestingly, these gains contrast with an 8% decline in whisky sales within India’s domestic market during the same period.

Indian whisky is starting to gain ground in travel retail but remains a small segment, representing less than 2% of total whisky sales in the channel. Reid explains that Indian consumers still prefer buying local whisky domestically due to better pricing and availability. In contrast, Scotch and Bourbon are seen as offering greater value in duty-free shops and are popular choices for gifts.

Other whisky categories are also seeing growth from a low base. Japanese whisky sales in India’s duty-free outlets more than doubled in 2024, while Irish whiskey volumes rose by over half, surpassing Indian whisky sales in this channel. Vodka also experienced strong growth at 48%, far outpacing its domestic performance. However, gin sales remained flat in travel retail despite modest gains domestically, and agave spirits saw only slight increases.

Consumer research from IWSR indicates that diversification is happening gradually. In March 2025, nearly one-fifth of Indian whisky drinkers reported buying their preferred spirit at duty-free stores—up from 15% the previous year—but this still trails behind Scotch, U.S., and Japanese whiskies.

Industry experts believe that as Indian consumers continue to explore new categories and premium offerings, non-Scotch whiskies and other spirits like vodka and gin will gain more shelf space in duty-free outlets. However, Scotch’s established reputation and status as a desirable gift are expected to maintain its dominance for the foreseeable future.

The evolving preferences of Indian travelers are prompting both global brands and local producers to adapt quickly. With passenger numbers set to climb sharply and consumer tastes becoming more sophisticated, India is poised to play an increasingly influential role in shaping the future of global travel retail for beverage alcohol.