India has achieved a significant milestone in the global spirits industry, becoming the largest market by volume for French drinks giant Pernod Ricard. This surge is powered by robust sales of popular local whisky brands and a growing appetite for premium international labels.
Volume Leader and Value Contender
The company's performance in the Indian market has been stellar. For the fiscal year ending June 30, 2025 (FY25), Pernod Ricard India sold a staggering 67.4 million cases, overtaking both the United States and China to claim the top spot in terms of pure volume. In financial terms, the market's contribution is equally impressive. With revenues crossing Rs 27,000 crore for the fiscal year ending March 31, 2025, India has edged past China to become Pernod Ricard's second-largest market globally by value, now sitting only behind the US.
Jean Touboul, CEO of Pernod Ricard India, highlighted that the country now contributes 13% to the group's global revenues. He expressed strong confidence in the market's future, stating, "It is the fastest growing (market) for sure. And, the one which has the best growth perspective for years to come." He attributed this sustained growth to structural advantages, notably India's demographic dividend.
Drivers of Unprecedented Growth
Several key factors are fueling this explosive growth. Firstly, India's young population is a major catalyst. Touboul pointed out that approximately 20 million people reach the legal drinking age every year, creating a vast pool of potential new consumers. While not all will drink or choose Pernod's brands, the company is focused on catering to this demographic with relevant offerings.
Secondly, the rising disposable incomes and overall economic growth are enabling a rapid shift towards premium products. "This is something that is working in favour of our strategy of premiumisation," Touboul explained. "We cater to the higher end of the market. So, when people have a growing income, they aspire to consume better products." This trend benefits both its mainstream portfolio—including giants like Royal Stag, Blenders Pride, and 100 Pipers—and its premium range featuring Chivas Regal, Jameson, and The Glenlivet.
In a strategic move to bolster its mainstream segment, the company recently launched a new locally-made brand, Xclamat!on, which will offer whisky, vodka, gin, brandy, and rum.
Outlook and Market Confidence
The company's success in India is so pronounced that the market's earnings now exceed those from Pernod Ricard's entire 'global travel retail' category. Contrasting India's boom with China's challenges, Touboul noted the Chinese market is in a "difficult situation" from a macroeconomic perspective.
Looking ahead, the ambition is clear. Touboul sees India emerging as the top revenue market globally for Pernod Ricard in the coming years. "In all logic, we will be a number one market for Pernod at some stage," he stated, adding that the timeline depends on the relative growth speed of the US market.
Addressing operational challenges, specifically legal cases and sales restrictions in Delhi, Touboul remained optimistic: "We remain confident in the strength of our legal position and look forward to resume operations in Delhi at the earliest." Under his leadership, Pernod Ricard has also surpassed its rival Diageo to become the biggest spirits company in India by volume and value.
