Bourbon bets big on India's growing market

India consumes about 230 million cases of whiskey annually, representing nearly half of global sales. American bourbon brands have historically remained niche because whiskey drinkers preferred Scotch and domestic options. In 2024, India imported $8.8 million worth of US-produced whiskey, reflecting limited demand and high costs. A 150% import tariff previously made bourbon prohibitively expensive, restricting availability and consumer reach. Recent US-India trade talks reduced the duty to 100%, improving the economics of selling American whiskey in India. Kentucky distillers face pressure from record bourbon inventories and falling US demand, with sales down nearly 8% and younger consumers shifting toward other beverages and non-alcoholic alternatives.

"India drinks more whiskey than any other country in the world. Roughly 230 million cases are consumed here annually, accounting for nearly half of global whiskey sales, according to the International Wine and Spirits Research, the global authority on beverage alcohol data. But American-made bourbon brands, such as Maker's Mark, have long remained a niche product in India, where whiskey drinkers have traditionally preferred Scotch and domestic brands."

"In 2024, India imported just $8.8 million (8.1 million) worth of US-produced whiskey, a relative drop in the barrel for India. But that could finally be changing. For years, a 150% import tariff meant bourbon was prohibitively expensive in India, limiting both availability and consumer reach. Recent US-India trade talks reduced that duty to 100%, significantly improving the economics of selling American whiskey in the world's largest whiskey market."

"According to the Kentucky Distillers' Association, warehouses across the state now hold a record 16.1 million barrels of ageing bourbon, more than three times the inventory seen during the whiskey glut of 1985. The assessed value of those barrels reached $10 billion (9.2 billion) in 2025, carrying a tax burden of roughly $75 million. Demand, meanwhile, has dropped sharply."

"Bourbon sales in the US fell nearly 8% last year, particularly among younger consumers who are increasingly shifting toward tequila, hard seltzers and non-alcoholic alternatives. Inflation, changing drinking habits, cannabis use and even the rise of weight loss drugs have all hit consumption."

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