Diageo Sees India as Key Growth Market, Expects Value Contribution to Keep Rising

Diageo, a spirits major, expects India's value contribution to rise on the back of its premiumisation strategy. India is already one of its top three markets globally, and the company is cautiously optimistic about mid-term growth. Diageo plans to invest in innovation and people, and is reshaping its portfolio based on consumer occasions, premiumisation, and innovation. The company's topline doubling by 2030 will depend on macroeconomic factors and policy stability.

Diageo, a global spirits major, is cautiously optimistic about the mid-term growth prospects in India, one of its top three markets globally. The company's strategy focuses on premiumisation, innovation, and investing in people, aiming to double its topline by 2030. This growth trajectory will heavily depend on macroeconomic factors and policy stability.

India's craft spirits market is projected to grow at a staggering 34.3% CAGR from 2024 to 2030, driven by premiumization and demand for locally crafted products [1]. Diageo India's The Good Craft Co. Flavour Market, a 11-acre destination in Ponda, Goa, is set to capitalize on this momentum. This project integrates a craft distillery, nanobrewery, innovation lab, and immersive experience center, positioning itself as the world’s largest hub for Indian-made craft spirits [2].

The Flavour Market's strategic design reflects a deep understanding of consumer behavior. It combines tourism, education, and product innovation to create a holistic ecosystem. The site's spice walk and botanical trail highlight local ingredients like Nagpur orange peel and saffron, aligning with the growing demand for "authentic" and "locally sourced" products [3]. The inclusion of a nanobrewery and micro-distillery enables rapid experimentation, allowing Diageo to iterate on flavor profiles and respond to niche market demands.

Diageo's existing craft portfolio, including Godawan single malt whisky and Jaisalmer Indian Craft Gin, has already demonstrated its ability to capture premium segments. Godawan, launched in 2022, has expanded to seven markets and plans to introduce a "Triple Cask" expression for global travel retail [4]. Meanwhile, Jaisalmer Gin’s "Gold Edition," with 18 botanicals, underscores the brand’s focus on localizing flavors [5].

The competitive landscape is intensifying, with Pernod Ricard investing €200 million in a Maharashtra malt distillery and Radico Khaitan tripling its gin production capacity [6]. However, Diageo’s Flavour Market differentiates itself through its ecosystem approach. By hosting startups, offering mentorship via the Academy, and creating a retail hub, it fosters collaboration rather than competition.

From an investment perspective, Diageo’s strategy is a masterclass in aligning with macro trends. The company’s emphasis on sustainability—via waste reduction in the innovation lab and eco-friendly packaging—and its focus on conscious consumption resonate with Gen Z and millennial consumers, who drive 60% of the market [8].

Critics may question the scalability of a tourism-driven model, but Diageo’s track record in global markets suggests a proven ability to balance local authenticity with global reach. The Flavour Market’s phased rollout—from Bangalore’s Flavour Lab to Goa’s full-scale hub—also mitigates risk while building brand equity.

In conclusion, Diageo India's The Good Craft Co. Flavour Market is more than a physical asset; it is a strategic lever to harness India’s craft spirits boom. By embedding itself in the cultural and economic fabric of the industry, Diageo is not just participating in growth—it is engineering it. For investors, this represents a compelling opportunity to back a company that is redefining what it means to be “Indian” in a globalized world.

References:
[1] India Craft Spirits Market Size & Outlook, 2023-2030 [https://www.grandviewresearch.com/horizon/outlook/craft-spirits-market/india]
[2] Diageo India Breaks Ground on The Good Craft Co. Flavour Market in Ponda, Goa [https://www.diageoindia.com/en/news-and-media/press-releases/2025/diageo-india-breaks-ground-on-the-good-craft-co-flavour-market-in-ponda-goa]
[3] Diageo India: 'Craft Spirits Are Defined by Intent, Not Scale' [https://www.thedrinksbusiness.com/2025/08/diageo-india-craft-spirits-are-defined-less-by-scale-and-more-by-intent/]
[4] Godawan Artisanal Indian Single Malt Launches an Exclusive Triple Cask Expression [https://www.diageoindia.com/en/news-and-media/press-releases/2025/godawan-artisanal-indian-single-malt-launches-an-exclusive-triple-cask-expression]
[5] A Definitive Guide to the India Spirits Market [2025] [https://www.gourmetpro.co/blog/guide-to-india-spirits-market]
[6] India's Spirits Journey [https://drinksint.com/news/fullstory.php/aid/11130/India_92s_spirits_journey.html]
[8] Diageo India Breaks Ground on The Good Craft Co. Flavour Market in Ponda, Goa [https://www.diageoindia.com/en/news-and-media/press-releases/2025/diageo-india-breaks-ground-on-the-good-craft-co-flavour-market-in-ponda-goa]