Liquor companies hope for a high
PackMan has heard that liquor demand didn’t really change in the June quarter — surprising amid election disruptions and multiple dry days across the country. According to PackMan’s sources, whisky grew by 0.4% in volume, while the sales volume of brandy fell by 1% and rum by 2.4%. Vodka and gin saw growth but with a low base.

PackMan wonders — what are the numbers for arrack?

Premium whiskeys power exports
The Confederation of Indian Alcoholic Beverage Companies data says that alcohol exports generated USD 400-million in revenue in FY 2024-25. PackMan has found that from before the pandemic until now, volumes have surged by 52% to eight-million cases. Of these, local single malts accounted for 1,50,000 cases.

Whisky emerges as a top choice for young consumers
PackMan has observed that the young are leaning toward whisky when it comes to liquor preferences — surprising because the drink is associated with men above the age of 50. In FY 2022-23, whisky consumption was at 243-million cases, which means whisky was almost directly responsible for the revival of the alcoholic beverage market in India after the pandemic.

Whiskey during a Real Madrid and Inter game? No way. PackMan prefers beer.

FDI in food processing drops
According to government data, foreign direct investment in food processing fell by 30% in the last fiscal year to Rs 5,037.06-crore. This is a sharp drop from Rs 7,194.13-crore in 2022-23.

Meanwhile, PackMan has heard that the packaged food makers are gearing up to hike prices as input costs increase. Parle, Britannia, and Mondelez International are resorting to increasing prices by 4–10%. 

PackMan says packaging converters will need to tread cautiously as companies will be moving forward with an end target of volume growth, because of 4–5% expected inflation in the coming months.

FMCG majors eye the pet care market
The pet care market is presently valued at Rs 5,000-crore. PackMan thinks the sector is meant to be a key growth driver for Nestle India and Godrej Consumer Products. Reportedly, the latter plans to invest Rs 500-crore into the space. Similarly, Heads Up for Tails, an online store for pet supplies aims to become a company worth Rs 500-crore in the next three years.

PackMan says that this increase is because of rising disposable incomes in dual-income households, and easier access to products and services via eCommerce that are not easily available locally.

Quick commerce eating into Kiranas, not eComm
New-age logistics firm Delhivery has put out some interesting numbers. The economics of deliveries in 10-15 minutes may not be sustainable for categories beyond groceries and FMCG products. And so, the timelines will start increasing as the cost of quick deliveries becomes apparent

PackMan has learnt that Delhivery, which swung back into a profit for the April-June quarter, is launching a network of shared dark stores for brands and eCommerce players.

Production of smartphone parts soon
In the last decade, India has increased its manufacturing capacity significantly. PackMan has heard from leading business portals that India is working to include IT hardware, servers, and chips in this portfolio. Reportedly, government policies like production-linked incentives have been instrumental in attracting foreign players, according to the Indian Cellular & Electronics Association (ICEA).

PackMan says that this comes after the ICEA called for a tariff reduction for components manufactured in India, such as open cells and LED lights.