New Delhi: Here’s a task: make a list of the most preferred poison of choice at a bar or party and you’d concede that the list would be incomplete without the mention of gin and tonic. But did you know that this classic, usually served with fresh lime and lots of ice, originated in India? That too for medicinal purposes, not recreational, at least in the beginning.
The story dates back to the 1800s, when parts of India were under colonial rule and British soldiers were made to consume quinine powder as prevention against Malaria. It was during their experiments with quinine — aimed at concealing its bitter taste — that British soldiers stumbled upon a combination of gin and tonic water. And a cocktail was born.
Winston Churchill is even credited to have said: “Gin and tonic has saved more Englishmen’s lives, and minds, than all the doctors in the Empire.”
However, despite the intriguing origin story, gin have not excited Indians much, until now.
Though India remains a brown spirits market, the availability of quality spirits by Indian makers, the rise of cocktail culture and freedom to experiment with flavours, is pushing the demand for gin in India. In 2022 alone, the demand for gin grew 28 percent year-on-year, largely driven by premium segments or gin priced at Rs 1,000 or more for a 750 ml bottle.
According to a report published by Allied Market Research, the size of India’s gin market was valued at $914.7 million in 2020, and is projected to reach $1,598.2 million by 2030.
Vinod Giri, director general at Confederation of Indian Alcoholic Beverage Companies (CIABC), told The Print that gin has been part of the overall liquor portfolio in India for over a hundred years.
“However, despite history and visibility, it is on the fringes in terms of size. One of the reasons could be that while most other categories evolved, gin remained limited by daytime usage and being part of servings with palate-dominating mixers such as tonic water, lemonade, lime cordial etc. The category also saw little innovations and over time became stagnant,” he added.
Data shared by the CIABC shows that the premium gin segment recorded an annual growth of 82 percent in 2020, 158 percent in 2021 and a whopping 200 percent in 2022. “This has led to spectacular premiumisation of the category. The segment which accounted for just about 5 percent of the category four years ago has risen to nearly a quarter of the category in volume. Value wise it will of course be much more,” Giri added.
This ‘gin-surgence’ is being led by a new generation of more “adventurous and eager to experiment” consumers.
“The trajectory of gin in India has been nothing short of impressive, especially considering the traditional dominance of brown spirits in the market. In recent years, there has been a remarkable shift in consumer preferences, with a growing inclination towards white spirits like gin,” said Amar Sinha, chief operating officer at Radico Khaitan Ltd — makers of the ‘Indian craft gin’ Jaisalmer and ‘single malt whiskey’ Rampur.
According to Sinha several factors have contributed to the growth of the gin industry in India, including rapid urbanisation, consequent lifestyle changes and increasing disposable income. With higher purchasing power, consumers are seeking sophisticated and elevated drinking experiences, leading to a surge in the popularity of gin, he explained.
Poonam Chandel, managing director at NeuWorld Spirits, told ThePrint that India’s gin market is coming of age.
“It has not reached its potential yet, but going by consumers’ taste, the segment is poised for at least 7-8 percent year-on-year growth. In the last couple of years, Indian consumers have moved beyond treating gin as an afternoon drink, or just going for G&T (gin and tonic). They are experimenting with gin-based cocktails,” she added.
NeuWorld Spirits is set to foray into the gin segment later this year.
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‘No two gins will ever taste the same’
The rise of cocktail culture has also acted as a catalyst for the growth of the Indian gin market.
Cocktail enthusiasts and mixologists are exploring and creating innovative and diverse cocktails, with gin as a favoured base spirit owing to its versatility and ability to complement a wide range of flavours, said Sinha.
With a wide array of botanicals and flavours available, gin offers a canvas for both consumers and distillers to experiment and create unique and distinctive products. This has also led to an influx of new Indian gins into the market, which is further pushing demand.
India is witnessing the launch of a new gin every 15-20 days as brands — both startups and established ones — try to cash in on the excitement in this space, said Anjali Batra, co-founder at Food Talk India, the agency behind the Gin Explorers Club, a festival dedicated to gin-based drinks organised in different cities across the country.
Batra added that while big players do have a presence in the gin segment, the space is also seeing the entry of startups, many of whom are first-time distillers getting into the spirits industry. These include Stranger and Sons, Greater Than, Samsara and Baagh. On the other hand, you have Jaisalmer from Radico Khaitan and Terai from Globus Spirits.
That it is a very easy spirit to make is another reason gin is a preferred segment for new brands to enter, according to those in the industry.
Batra explained: “You buy a grain spirit or a neutral spirit and further distill it with botanicals. Juniper is the primary ingredient and then you can add whatever botanicals you wish. This is also one of my favourite things about the category that no two gins in the world would ever taste the same because they have a blend of botanicals. There is so much variety, there are spicy gins, smoky gins, floral gins, coloured gins or a mix of two categories of gins. It presents innumerable opportunities for people to experiment.”
Asa Abraham, head of public relations and communications at John Distilleries, which produces brands such as Paul John single malt whiskey and Malhar Indian Craft Gin, agreed. “This is the easiest category to enter with low capital investment so we would say it’s a formula game where most of the gin start-ups are getting in for the valuation seeing the success of some Indian gins.”
John Distilleries, which currently sells its Malhar Indian Craft Gin in Maharashtra, Karnataka and Goa, and in the UK, plans to add more gins to its portfolio while increasing footprint in more markets in the country.
In 2017, Gin Explorers Club held its first festival in India which saw the participation of a few hundred people. This number swelled to about 2,000 by the time of the second edition in 2019.
“Now, after eight editions, we have about 15,000 people in each city that we have the festival in who buy tickets and come join us and drink gins. We offer at least 15 gins at every edition and most of these are Indian. So it’s not just consumers, but also the brands which are increasing,” said Batra.
She added that a new gin pops up every 15-20 days. “It is a vibrant and exciting time for gins.”
Batra also said that India has many brilliant flavours, which gives people more choices to experiment with. Radico Khaitan’s Jaisalmer, which saw an “unprecedented surge” of 400 percent in sales in 2022 compared to the previous year, is infused with 11 botanicals, including lemongrass, coriander, angelica root, vetiver and licorice. Seven of these are sourced from India.
“A lot of the Indian brands that you hear about, whether it’s Stranger and Sons or Hapusa — I just heard of a new one that’s coming out called Chambal Gin — they are all playing around with Indian ingredients and celebrating their homegrown flavour culture,” said Batra.
Chandel agreed. According to her, while whisky will remain India’s top alco-bev [alcoholic beverage], she sees gin making inroads with the younger generation.
The gin drinkers
The younger generation, Batra believes, is showing a preference for gin more than the other popular white spirits such as vodka, because “Gin is like somebody gave vodka a personality” — which appeals to today’s generation.
Abraham agreed and added that it was also a favourite of the modern bartender who loves to experiment with flavours and ingredients.
The gin-surgence is being driven by factors such as cocktail culture, rise in gin festivals and cocktail weeks happening across cities and a “tribe of gin collectors and geeks who seek out every gin tasting and chase limited releases and editions of gins,” she said.
“Gin is taking over vodka consumers and surprisingly fermented beverage consumers too. We see consumers moving towards gin from other categories because it is so versatile and automatically attracts the experimental palate. Migration would largely be from vodka, as gin is a drink that is dressed in botanicals for a party! It’s’ always ‘Gin O’clock’ somewhere!,” Abraham said.
According to Sinha gin finds a special resonance among adults in their late 20s to mid-40s residing in vibrant urban areas. “Distinguished by its premium status, gin holds a magnetic charm for consumers with higher disposable incomes, who are willing to indulge in the exceptional and elevated experience that gin promises to deliver,” he said.
Replying to a query, he added that though the exact number of companies producing gin in India is not explicitly stated, around seven to eight well-known brands have firmly established their presence in this segment.
Sales of Indian gins in the premium category grew by 78 percent in 2020, 84 percent in 2021 and 109 percent in 2022. In contrast, sales of imported gins surged by 5 percent in 2020, 42 percent in 2021 and 90 percent in 2022. According to Giri, “Indian gin accounted for just over a quarter of the premium segment four years ago but has now risen to over 40 percent. Share of imported gin has fallen from 74 percent to 59 percent in just four years time.”
However, he added that this growth is not coming at the expense of the other prominent white spirits such as vodka, which has also maintained growth momentum in India and on a much bigger base.
“In vodka also, we see signs of premiumisation with the premium segment growing at twice the speed of mainstream/value segments. Vodka as a category saw a growth of 22 percent in 2021 and 35 percent in 2022; this was driven by growth in the premium vodka segment which grew 57 percent in 2021, and 73 percent in 2022,” he says.
Giri adds that the absence of Indian innovation in premiumisation of the category shows a falling share of Indian brands in the premium segment.
“Vodka in India needs a quality movement like gin,” he says, adding that in vodka, the share of Indian players in the premium segment has fallen from 20 percent in 2019 to 14 percent in 2022, while that of non-Indian players has risen from 80 percent to 86 percent.
(Edited by Amrtansh Arora)
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