India surges as a key market for Irish whiskey as US sales slow

Drinks Ireland and the Irish Whiskey Association are pressing for the conclusion of an EU-India free trade agreement

Irish whiskey and cream are among the EU products which will still face a 150% tariff in India.

The Irish whiskey and spirits industry grew last year, but it is facing “unprecedented challenges” this year in the face of US tariffs.

The Irish Spirits Market Report from Drinks Ireland shows a modest spirit export volume growth of 2.8% last year.

While value growth was higher, at 11.8%, this was largely driven by supply chain inflation, the report states.

For whiskey, Ireland’s biggest market remains the US, accounting for 40% of total whiskey exports by value.

However, sales to the US fell 3.5% last year, while exports to Canada also ended the year down by 3.6%.

These declines occurred before the imposition of tariffs by US president Donald Trump, with Irish spirits now attracting a 15% rate on exports to the US.

“We know that 2025 has been very challenging for our members and their businesses,” Drinks Ireland director Aengus King said.

Given the current trading environment, distillers and spirits producers need more direct supports to drive export market development and diversification.

“Furthermore, with per-capita consumption now 34% lower in Ireland than 2001, as well as the headwinds being faced by industry, now is the time for a 10% excise reduction in Budget 2026.”

Despite the current headwinds, 2024 brought positive trends for Irish spirits.

Success in India despite 150% tariff

The biggest success story was in India, where sales grew by 57.5% due to the growing affluent population in key regions. India has surpassed Britain in the market rankings for Irish whiskey.

However, the recently concluded UK-India Free Trade Agreement will see an immediate halving of tariff levels for British spirits. 

The Indian government also announced a reduction in the tariff for US bourbon to 100%.

“Irish whiskey and Irish cream are among the EU products which will still face a 150% tariff,” the report notes.

“This would present a significant competitiveness challenge for Irish and EU exports to India. Drinks Ireland and the Irish Whiskey Association continue to press the European Commission to prioritise the conclusion of a free trade agreement with India to maintain our competitiveness.”