Why India’s Airport Duty-Free Liquor Sales Are Flying Off the Shelves

Introduction: Airports Become Liquor Shopping Hubs

If you've traveled to a big Indian airport recently, you will likely have observed the excitement surrounding the liquor counters. Duty-free Scotch, whisky, vodka and other spirits were selling out fast. Duty free sales were up 13% in 2024, which compared to a 6% increase in growth in alcohol sold in domestic retail shops in 2024. 

What does this mean for the impetus behind this growth, and why are airports becoming an important destination for liquor purchases? There are patient and urgent changes, traveler patterns, FTA policies with the India–UK Free Trade Agreement, and a few other components of the liquor purchase landscape.

Duty-Free vs Domestic Retail: A Quick Comparison

Here’s how airport liquor sales stack up against domestic stores in 2024:

Key takeaway: While domestic whisky sales are slowing, airport duty-free counters are thriving, especially for premium and imported labels.

Whisky Still Rules, But Other Spirits Are Rising

Whisky accounts for nearly 75% of duty-free sales. Here’s a closer look:

• Scotch whisky grew 11%, maintaining strong international appeal.
  
  
• US whisky rose 8%, reflecting steady global demand.
  
  
• Indian whisky expanded 10% by volume and 18% by value, showing domestic brands are gaining recognition.
  
  

Meanwhile, vodka is surging with a 48% growth, much faster than domestic retail. Gin, rum, and niche spirits are also gaining popularity as travelers experiment beyond traditional whisky.

Takeaway: Airports offer a space for exploration, and travelers are open to trying new spirits.

Why Duty-Free Liquor Is Booming

Several key factors explain this trend:

1. Growing Air Traffic

India’s air traffic is expected to increase 50% over the next five years, driving more footfall through airport retail outlets. More travelers mean more potential buyers for liquor brands.

2. Premiumisation Trend

Younger travelers, especially Gen Z and millennials, are shifting focus from price to experience. They are willing to pay for premium labels, boosting sales for Scotch, Indian single malts, and international vodka.

3. Longer Waiting Times

Layovers give passengers the chance to browse and explore different liquor options, making airport shopping convenient and engaging.

4. Diversifying Tastes

Travelers are becoming more adventurous, moving beyond whisky to vodka, gin, rum, and niche spirits. Duty-free outlets respond with curated selections and limited edition bottles.

Also Read: Tamil Nadu Liquor Price Hike 2025: How GST 2.0 Will Impact Tasmac and Consumers

India–UK FTA: What It Means for Scotch

Currently, Scotch whisky in India faces an import duty of 150%. The FTA introduces:

• An initial reduction to 75%.
  
  
• A gradual decrease to 40% over 10 years.
  

Example: A bottle priced at INR 5,000 today could cost INR 3,500–4,000 post-FTA.

Note: Short-term savings may be limited as import duties are only part of the final price. Over time, more affordable pricing could increase demand at duty-free outlets.

Case Study: Delhi Airport Liquor Sales

Insight: Stores offering a mix of global and Indian brands capture the widest audience.

Global Travel Retail Trends

• Global alcohol consumption is expected to remain flat between 2024–2029.
  
  
• Travel retail volumes are forecasted to grow at 3% CAGR globally and 4% in Asia.
  

Takeaway: India is becoming a key growth market for global liquor brands, with airport duty-free outlets acting as a strategic platform.

Tips for Duty-Free Liquor Shoppers

1. Research Prices: Review both online and in-store duty-free prices.
   
   
2. Understand Customs Allowances: Don't exceed the allowances for international travel.
   
   
3. Explore Indian Brands: Indian distilleries are becoming more popular around the world.
   
   
4. Look for Limited Editions: You may find limited editions at airports that aren't easily available elsewhere.
   
   
5. Factor Layover Time: Length of layovers can dictate selection.

The Road Ahead

• Whisky will continue to lead in sales, but vodka and other spirits will also gain market share.
  
  
• Growing disposable incomes and travel will continue to drive sales.
  
  
• Pricing changes driven by free trade agreements may lead to premium imports being more readily available.
  
  
• Brands are now targeting Indian travelers as a strategic growth group.

The duty-free liquor market at India's airports is evolving quickly. For customers that travel through the airport, it is an opportunity to purchase a range of premium liquors at appealing price points. For liquor brands, it is a mechanism to reach a variety of new, young, growing, and conscious drinkers.

Also Read: Why Sun Cruiser Iced Tea Vodka Is the Hard Tea Everyone’s Talking About