After Covid, there has been a big change in the way people like drinks. Gin was once considered the most favorite drink, its demand is now gradually decreasing. The IWSR report shows that the growth rate of gin sales will decline to less than 4% in 2024, whereas it was around 9% a year ago.
This decline is even more shocking compared to the era when gin brands were prevalent in every party and bar. Especially many craft gin brands originating from Goa like Greater Than, Samsara, Short Story and Stranger & Sons initiated this change. But now their pace has started slowing down.
Consumer tastes are changing
As new options are coming in the market, people are also changing their tastes. The enthusiasm that was earlier about gin has now started moving towards drinks like vodka and tequila. The problem with gin is that it doesn’t have the scope of a brand story like whiskey. People quickly change their favorite brand and even the entire category of liquor. The person who is drinking gin today will be trying tequila tomorrow. This is the reason why the demand for tequila and vodka is increasing rapidly.
Startups facing difficulties
Small distilleries i.e. startups making craft gin are struggling due to low margins, limited market access and limited budgets. Although they have contributed a lot in making this category famous, but it is becoming difficult to survive in a market like India. Here customers get bored very quickly and start trying something new. Due to this, consolidation is now being seen in this sector. At the same time, big companies are now buying small brands or bringing their own gin brands.
Entry of big companies, but slow pace
United Spirits took a stake in Now Spirits and Tilaknagar Industries bought Spaceman Spirits Lab, which makes Samsara Gin. At the same time, old players like Amrit Distillery and John Distilleries are also trying to establish their hold in the gin market. But despite these efforts, the pace at which vodka and tequila are increasing in popularity has reduced the space for gin.