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India’s rapidly-growing middle class is thirsty for premium alcohol
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. The post India’s rapidly-growing middle class is thirsty for premium alcohol appeared first on The Drinks Business.
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.
Touboul, who has been managing director of the French spirits giant's Indian business since 2023, said consumers in the country prefer "to drink less probably, but drink better".
The Pernod Ricard India MD was speaking on Friday at a session during India Today Conclave, an annual conference bringing together Indian business leaders from a range of disciplines.
"This trend is growing in the younger generation," Touboul said, suggesting that younger drinkers are more aspirational in their consumption of alcohol.
India's middle class is growing rapidly. In recent years, more than 250 million citizens have transitioned out of poverty and joined the neo-middle class, a growing group that Prime Minister Narendra Modi describes as the “powerhouse of Indian aspirations”, according to Kantar.
Recent reports show that India's middle class is expanding at a rate of around 6.3% per year, with projections showing it could represent 38% of the population by 2031 and 60% by 2047, making it the fastest-growing major segment of the Indian population.
This growth is driving consumer spending and is considered a key force behind India's economic development.
Touboul said that as younger aspirational drinkers age, their disposable incomes are likely to "grow with life". As such, "we should see this trend continuing, if not accelerating".
The major frustration for drinks businesses operating in India is its state-by state regulation. Each state has a unique excise policy, meaning importers, producer and distributor wanting to enter the Indian market need to be wise to the different rules set by each state’s government.
Certain states have their own regulation regarding bottle labels, packaging and selling price, making it impossible to approach the Indian market as a single entity.
“The levels of bureaucracy are phenomenal,” Luke Tegner, a consulting director for drinks market insights firm IWSR, previously told the drinks business. “Whatever you do, you have to do on a state-by-state basis, you can’t do things nationwide, so you really need a well-connected, knowledgeable importer and distributor.”
Visit our state-by-state guide to India's liquor laws to find out more.
Touboul said: "It's fair to say that India is complex, and this regulation, which is different in different states, does create some difficulties."
However, the Pernod Ricard India MD refused to complain. He said: "We acknowledge alcohol is not neutral and we accept the regulation and taxation that goes with it."
Pernod Ricard makes Indian single malt whisky Longitude 77. When it comes to whisky specifically, Touboul said Indian whisky brands would follow the same elevation strategy in the local market via "innovation with premiumisation towards luxury".
Touboul, who has been managing director of the French spirits giant's Indian business since 2023, said consumers in the country prefer "to drink less probably, but drink better".
The Pernod Ricard India MD was speaking on Friday at a session during India Today Conclave, an annual conference bringing together Indian business leaders from a range of disciplines.
"This trend is growing in the younger generation," Touboul said, suggesting that younger drinkers are more aspirational in their consumption of alcohol.
India's middle class is growing rapidly. In recent years, more than 250 million citizens have transitioned out of poverty and joined the neo-middle class, a growing group that Prime Minister Narendra Modi describes as the “powerhouse of Indian aspirations”, according to Kantar.
Recent reports show that India's middle class is expanding at a rate of around 6.3% per year, with projections showing it could represent 38% of the population by 2031 and 60% by 2047, making it the fastest-growing major segment of the Indian population.
This growth is driving consumer spending and is considered a key force behind India's economic development.
Touboul said that as younger aspirational drinkers age, their disposable incomes are likely to "grow with life". As such, "we should see this trend continuing, if not accelerating".
The major frustration for drinks businesses operating in India is its state-by state regulation. Each state has a unique excise policy, meaning importers, producer and distributor wanting to enter the Indian market need to be wise to the different rules set by each state’s government.
Certain states have their own regulation regarding bottle labels, packaging and selling price, making it impossible to approach the Indian market as a single entity.
“The levels of bureaucracy are phenomenal,” Luke Tegner, a consulting director for drinks market insights firm IWSR, previously told the drinks business. “Whatever you do, you have to do on a state-by-state basis, you can’t do things nationwide, so you really need a well-connected, knowledgeable importer and distributor.”
Visit our state-by-state guide to India's liquor laws to find out more.
Touboul said: "It's fair to say that India is complex, and this regulation, which is different in different states, does create some difficulties."
However, the Pernod Ricard India MD refused to complain. He said: "We acknowledge alcohol is not neutral and we accept the regulation and taxation that goes with it."
Pernod Ricard makes Indian single malt whisky Longitude 77. When it comes to whisky specifically, Touboul said Indian whisky brands would follow the same elevation strategy in the local market via "innovation with premiumisation towards luxury". 
