India rises: global travel retail’s new star

India’s duty free and travel retail market is experiencing rapid growth, ensuring that the country’s travellers are poised to play a crucial role in the sector in the years ahead. Volumes are currently heavily weighted to whisky – and Scotch in particular – but there are signs of increasing sophistication and category diversification.

According to IWSR data, total beverage alcohol (TBA) volumes in India travel retail increased by +13% in 2024, with similar rates of growth for spirits (+13%) and wine (+12%), as well as a +123% volume spike for the very small RTD category. That compares to a +6% increase for TBA volumes in India’s domestic market.

India’s rise occurs as global travel retail (GTR) is becoming an increasingly significant driver of TBA growth at a challenging time for the industry: while IWSR forecasts predict that global TBA volumes will be essentially flat between 2024 and 2029, TBA volumes in GTR are expected to grow at a CAGR of +3% over the same timescale. For Asia (IWSR GTR forecasts are only available at a regional level), the projected rate of growth 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 travel retail landscape in India is changing rapidly, altering the balance between domestic and duty-free arrivals sales, adds 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 same time, in-store duty free experiences are increasingly resonating with Indian passengers. Single malts, aged whiskies and craft gins are now front-and-centre in Indian travel retail outlets, both in arrivals and departures, catering to travellers looking for premium gifts to take home.

Meanwhile, global brands are increasingly pivoting to ‘India first’ strategies, such as Diwali-themed packs, or gift packs with city themes designed to attract the Indian shopper. Brands are also partnering with Indian celebrities to provide cultural relevance and engage with local consumers.

The expanding relevance of GTR comes as India’s domestic beverage alcohol market is becoming increasingly diverse: according to IWSR Bevtrac consumer research, which surveyed consumer behaviour among urban Indian adults, the average number of categories consumed in India rose from 6.9 in March 2024 to 7.2 in March 2025 as Indians expanded their repertoires and explored new options.

However, this diversification is yet to be reflected on the travel retail scene, where whisky – and Scotch in particular – continue to dominate. According to IWSR data, whisky accounted for 74% of India duty free spirits volumes in 2024, with Scotch taking a 65% share on its own.

Total whisky volumes in India duty free rose by +12% last year, with Scotch up +11% and US whiskey rising by +8% – in contrast to the category’s performance in the Indian domestic market, where volumes declined by -8% in 2024.

Indian whisky volumes in India duty free rose by +10%, with value outstripping that performance with growth of +18%, but the category remains small in GTR, accounting for less than 2% of total whisky volumes in 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 other origins are growing in India duty free, but off a small base. According to IWSR data, Japanese whisky volumes in India duty free grew by +110% in 2024, and Irish whiskey volumes were up by +51%, overtaking Indian whisky in the process.

These signs of increasing diversification and sophistication extend beyond the whisky sphere: vodka sales by volume in India duty free rose by +48% in 2024 – well ahead of domestic market growth of +17%.

However, gin volumes in travel retail were flat (India domestic sales +4%), and agave spirits volumes increased by only +1%, versus a gain of +28% in the domestic market, suggesting that their growing domestic popularity is yet to translate into increased duty-free listings and sales.

IWSR’s Bevtrac consumer research in India also suggests a slowly evolving picture: in March 2025, 19% of drinkers of Indian whisky said they had purchased this category in a duty-free store, up from 15% the year before.

However, this still lags well behind Scotch, US and Japanese whiskies, where the proportion of category drinkers who purchase them in travel-retail is around 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, prepared for APTRA (the Asia Pacific Travel Retail Association)