India’s duty free and travel retail (GTR) market is on a rapid growth trajectory, positioning the country’s travellers as key players in the global beverage alcohol sector.
While whisky—especially Scotch—remains the dominant category, consumer behaviours are shifting, with diversification and premiumisation driving change.
Strong Growth Amid Global Headwinds
According to IWSR data, total beverage alcohol (TBA) volumes in India travel retail rose by +13% in 2024, outpacing the domestic market’s +6% increase. Spirits and wine mirrored this growth (+13% and +12% respectively), while the small but dynamic RTD category surged by +123%. This growth comes as global TBA volumes are expected to remain largely flat between 2024 and 2029, highlighting India’s strategic importance.
Passenger traffic is also a crucial factor. Oxford Economics forecasts a +50% rise in Indian passenger numbers over the next five years, with growing disposable income and changing consumer preferences underpinning this upward trend. Younger generations—particularly Gen Z and Millennials—are driving demand for brands, experiences, and authenticity over purely price-driven choices.
The Evolving Retail Landscape
Traditionally dominated by whisky, India’s duty free stores are gradually diversifying. In 2024, whisky accounted for 74% of spirits volumes, with Scotch alone taking 65%. Scotch volumes increased by +11%, US whiskey by +8%, and Japanese whisky by an impressive +110%. Irish whiskey also rose by +51%, overtaking Indian whisky, which, despite value growth of +18%, still holds a marginal share at under 2% of GTR whisky volumes.
Beyond whisky, vodka demonstrated remarkable momentum, growing +48% in duty free versus +17% domestically. By contrast, gin remained flat, and agave spirits grew only +1% in duty free despite strong domestic demand. This suggests that while diversification is occurring, it is uneven across categories.
Shifts in Consumer Behaviour
IWSR Bevtrac consumer research highlights evolving purchase patterns. In March 2025, 19% of Indian whisky drinkers reported buying it in duty free, up from 15% a year earlier. However, Scotch, US, and Japanese whiskies remain significantly ahead, with one-third of their consumers purchasing in the channel.
Duty free shopping is increasingly seen as an experience, with premium offerings such as single malts, aged whiskies, and craft gins taking centre stage. International brands are investing heavily in India-first strategies, offering Diwali-themed packaging, city-inspired gift sets, and celebrity partnerships to capture consumer attention.
Looking Ahead
While Scotch is set to retain its aspirational dominance in India’s duty free market, the trends of premiumisation, diversification, and experiential retail will shape the sector’s future. With Indian travellers’ purchasing power and tastes evolving rapidly, brands that align with cultural relevance, innovation, and premium value will be best positioned to succeed.
India’s rise in duty free is more than just a volume story—it’s about the transformation of consumer behaviour and the country’s growing influence on global travel retail.
Source: IWSR