India's spirits demand increased by 12% in FY23, with demand rising for all the key segments of whisky, brandy, rum, gin and vodka, especially for premium products. Nearly a dozen states, including Rajasthan, Kerala and southern states, allowed price increases, enabling companies to mitigate some margin pressure. However, companies are being affected by rising costs, with raw materials such as extra neutral alcohol, glass and packaging materials seeing a record surge in prices, according to industry executives. Vinod Giri, director general at the Confederation of Indian Alcoholic Beverage Companies, expects the sector to grow at a CAGR of 7-8% over the next five years.