The global vodka and gin industry is experiencing dynamic trends, with a surge in craft and flavored varieties. Artisanal distilleries are reshaping consumer preferences, emphasizing quality and unique flavor profiles. The rise of botanical-infused gins and innovative vodka infusions caters to evolving tastes. Health-conscious choices also drive the market, with the demand for low-calorie and organic options on the upswing. As consumers seek experiential drinking, brands are focusing on storytelling and sustainability, contributing to a more diverse and environmentally conscious spirits landscape worldwide.
We talk to Stéphanie Durroux, Chairwoman and CEO, The Absolut Group on what is in store for gin and vodka:
1. India has witnessed a growing trend of premiumization, and consumers are spoilt for choices. How is the Absolut Group innovating to stay ahead of the curve in a cluttered market?
The Absolut Group is strategically navigating India’s evolving market dynamics by capitalizing on the burgeoning trend of premiumization. With the country’s robust economic growth and shifting consumer preferences, there’s a palpable demand for premium spirits, particularly among younger demographics.
To cater to this demand, the brand boasts a diverse portfolio of premium white spirits, prominently featuring the iconic Absolut Vodka, alongside a robust selection of Gins, Tequilas and Mezcals.
In particular, we are capitalizing on the flourishing Gin boom in India, which has seen remarkable growth in value (+81% per year between 2017 and 2022), with a further projected growth of 18% p.a. until 2027.
Our extensive lineup of Gin brands has received numerous accolades, solidifying our positions in the premium+ segments. The London Dry Gin Beefeater, renowned as the most awarded Gin globally and ranking #3 in the premium+ Gin segment worldwide, is on a very positive trend.
Monkey 47, the craft German Gin from the Black Forest, has consistently ranked as the top trending Gin brand for eight consecutive years, as per the 2024 Brand Report by Drinks International. India’s status as Asia’s leading market for Monkey 47 further underscores its resonance with consumers.
In essence, the brand’s innovative approach to product diversification and strategic positioning within the premium spirits market gives us confidence in our capacity to address evolving consumer preferences in India.
2. Absolut Vodka has dominated the Indian market – what has been the secret to the spirit’s success in India?
Indeed, according to data from IWSR, the brand commands an impressive market share of 92% in the Premium Vodka category as of 2022, making it an indisputable leader in the Indian market.
Globally, Absolut is also the n°1 global Premium Vodka, with presence in almost every market around the globe. It is consistently winning awards for its superior quality, which is of course a key contributor to its success among consumers and bartenders.
In India as well as in most countries, the brand image lies on the foundation of creativity and purpose. Through a series of iconic and award-winning campaigns, the brand has established itself as more than just a spirit; it’s a cultural platform that celebrates art, music, and pop culture.
Recently, the “Be an Absolut Ally” campaign launched in 2023 aimed to foster inclusivity and positive change by amplifying the voices of the Indian LGBTQIA+ community, showcasing Absolut’s commitment to social responsibility.
Absolut also consistently drives innovation in its product portfolio to cater to evolving consumer preferences. By introducing new flavors tailored to the Indian taste palate, Absolut ensures that it remains relevant and appealing to consumers.
All these factors collectively contribute to Absolut’s continued dominance in the Indian Premium Vodka market.
3. Vodka as a spirit was prevalent across demographics worldwide, but in the last decade, Gin has seen a spurt in its growth and has transitioned as a preferred choice with many native brands entering the fray. Does that bode well for the segment or create more challenges for the growth of the category?
The surge in the popularity of Gin over the past decade alongside the enduring appeal of Vodka presents real opportunities for the white spirits segment in India, that have now a more dynamic and diverse market to tap into. This increased competition fosters innovation and drives brands to cater to evolving consumer preferences, ultimately enriching the overall spirits landscape.
India’s evolving cocktail culture has significantly contributed to the rising demand for Gin in the country. The aromatic profiles and diverse flavor offerings of Gins resonate with consumers seeking new taste experiences, driving further exploration within the category.
The brand’s extensive portfolio of gins, spanning various price segments, positions it well to capitalize on the growing demand in India. Brands like Beefeater, Malfy, Monkey 47, and KI NO BI cater to different consumer cohorts, allowing the company to capture a significant market share across the segment.
Despite the increasing popularity of Gin, Vodka remains a versatile spirit cherished by consumers for its mixability and wide range of cocktail possibilities. The coexistence of Vodka and Gin within consumers’ repertoires suggests that both spirits complement each other rather than compete directly, further contributing to the overall growth of the white spirits category.
I believe that more competition in white spirits signifies a more vibrant and evolving market in India. Through innovation, a diverse product portfolio, and a focus on consumer engagement, our brands are well-positioned to navigate these changes and capitalize on the large growth opportunities.
4. To be able to cater to the increasing demand for Gin in India, does Vodka take a backseat for Pernod Ricard India in the larger scheme of things? Can you explain the focus of the brand in India?
For Pernod Ricard, the increasing demand for Gin in India does not mean that Absolut Vodka is slowing down – quite the opposite!
India has become a significant market for Absolut, experiencing robust year-on-year growth. It is now the 7th market for Absolut globally, on its way to make it to the top 3 in a foreseeable future.
Absolut recently introduced a limited-edition bottle dedicated to India (designed by Osheen Shiva), showcasing the brand’s determination to grow and thrive in the Indian market.
The brand’s strategy in India includes introducing new flavors tailored to the Indian taste palate. With a focus on citrus flavors that are popular among Indian consumers, Absolut has launched variants like Mandrin, Citron, Raspberri, Lime, and more recently Grapefruit. Responsiveness to local preferences has been successful for the brand: the flavoured Vodka s range now accounts for more than 15% of Absolut sales, twice higher than 3 years ago.
We also recognize the importance of providing consumers with premium spirits that serve as a canvas for experimentation, especially for younger consumers who need creativity. By offering a wide array of flavors and encouraging experimentation, the brand aims to enrich consumers’ experiences and broaden their taste profiles. This is how the brand can remain relevant and appealing to the ever-evolving Indian market.
In essence, we want to capitalize on the growing popularity of Gin in India, while remaining dedicated to sustaining Absolut remarkable success and leading position in India.
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