India Alcohol Market is estimated to be valued at USD 60.11 Bn in 2025 and is expected to reach USD 101.10 Bn in 2032, exhibiting a compound annual growth rate (CAGR) of 7.7% from 2025 to 2032.
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The India Alcohol Market Size is among the fastest growing in the world which is fueled by changing customer preferences, increased disposable incomes, and quick urbanization. The India alcohol market has been witnessing significant growth over the past few years. Factors such as rising disposable incomes, changing lifestyle, and social drinking habits have been driving the market growth. While the consumption of beer and spirits has increased substantially, India made foreign liquor (IMFL) continues to dominate the market. However, there is a rising popularity of the craft beer and premium whisky segments. The growing acceptance of women drinking alcohol particularly in urban areas is another factor that will support the market expansion in the coming years.
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Description and Impact |
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Stricter Alcohol Advertising Regulations |
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State-Level Excise Policy Reforms & Collaboration |
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Pricing in the Indian alcohol market is heavily influenced by the costs of raw materials, packaging, labor, transportation, and regulatory factors. Over the past year, there has been a significant increase in production costs across the supply chain.
Key raw materials such as Extra Neutral Alcohol (ENA), malt spirit, and grains (notably non-basmati rice and barley) have seen price volatility, with non-basmati rice prices rising by 20–25% in early FY2025 before softening mid-year. Barley prices have remained relatively stable. Packaging material costs, especially glass bottles, have declined recently due to corrections in soda ash prices, providing some relief to manufacturers
In terms of beverage type, spirits (whisky, vodka, rum, gin, etc.) is expected to contribute 35.1% share of the market in 2025, owing to a growing preference for premiumization among young India adults. As disposable incomes in the country continue rising, more consumers - especially those in metropolitan areas - are willing to spend extra on higher quality spirits over other beverages.
Beer and wine remain niche in India compared to spirits due to cultural preferences as well as limited availability in many areas until recently. For instance, the average age of the India population is reducing significantly, with over 60% now under the age of 35. This young population has grown up with increasing exposure to global mixology trends through social media and travel. They are fueling the demand for premium international spirit brands and cocktails served at bars and restaurants in major cities.
Products like premium Scotch whisky and American/European vodka are in high demand due to their perceived status value. Local craft distilleries are also emerging to tap into this growing consumer base interested in unique tasting experiences. Brands are targeting younger India drinkers through innovative packaging, flavor extensions, and savvy digital marketing campaigns.
Ready-to-drink cocktail mixes and premixed spirits are gaining ground due to their convenience. The experimentation with different flavors also allows consumers to sample a variety of products without committing to an entire bottle, thus driving higher volumes overall. As India society continues to modernize at a rapid pace, the trend of premiumization in spirits is expected to persist well into the future.
When considering price point, the mid-range segment is expected to contribute 40.3% share to the India alcohol market in 2025, primarily due to its accessible price levels for mass consumption. Economy/value brands dominate bottled beer sales and some hard liquor categories as well. However, mid-range brands achieve the sweet spot of offering good quality at competitive price points that a wider consumer base can comfortably afford to buy regularly or for at-home socializing occasions.
With average disposable incomes still moderate compared to developed markets, mid-range brands allow the bulk of consumers living in Tier 2/3 cities to indulge in alcohol without going over their budgets. These products serve as affordable social drinks that families and friends can share together during festivals and get-togethers. Due to their scale, mid-range companies are able to invest substantially in Pan-India distribution networks spanning urban and rural areas.
Aggressive retail activation promotions are also run by these brands to stay top-of-mind amid fierce competition. Some blend premiumization into their portfolios through superior expressions at higher tiers to appeal to upwardly mobile customers as well. With over 70% of India still classified as middle or lower-income consumers, mid-range brands will maintain their stronghold.
When considering price point, the mid-range segment is expected to contribute 40.3% share to the India alcohol market in 2025, primarily due to its accessible price levels for mass consumption. Economy/value brands dominate bottled beer sales and some hard liquor categories as well. However, mid-range brands achieve the sweet spot of offering good quality at competitive price points that a wider consumer base can comfortably afford to buy regularly or for at-home socializing occasions.
With average disposable incomes still moderate compared to developed markets, mid-range brands allow the bulk of consumers living in Tier 2/3 cities to indulge in alcohol without going over their budgets. These products serve as affordable social drinks that families and friends can share together during festivals and get-togethers.
Due to their scale, mid-range companies are able to invest substantially in Pan-India distribution networks spanning urban and rural areas. Aggressive retail activation promotions are also run by these brands to stay top-of-mind amid fierce competition. Some blend premiumization into their portfolios through superior expressions at higher tiers to appeal to upwardly mobile customers as well. With over 70% of India still classified as middle or lower-income consumers, mid-range brands will maintain their stronghold.
| Report Coverage | Details | ||
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| Base Year: | 2024 | Market Size in 2025: | USD 60.11 Bn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 7.7% | 2032 Value Projection: | USD 101.10 Bn |
| Segments covered: |
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| Companies covered: |
United Spirits Limited, Tilaknagar Industries Ltd, United Breweries Limited, Jagatjit Industries, Mohan Meakin, Globus Spirits, Allied Blenders and Distillers Pvt., SAB Millier, Radico Khaitan Limited, Khemani Group, SOM Distilleries and Breweries, Carlsberg A/S, Som Distilleries And Breweries Limited, Khoday India, Amrut Distilleries, Amber Distilleries Limited, Carlsberg India, Raj Innotech, Anheuser-Bush InBev SA/NV, and White Rhino Brewing Co. |
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With India's economy growing at a rapid pace over the past decade, personal incomes have risen substantially. According to recent estimates, the average annual household income in India increased from around US$1,100 in 2010 to nearly US$1,800 in 2020. This rise has been fueled by robust job creation in sunrise industries and service sectors. As incomes increased, so has the amount of discretionary spending power with individuals.
Alcohol happens to be one of those luxury/leisure goods whose demand increases along with the rise in discretionary incomes. Young urban Indias today have more exposure to global lifestyle and are willing to spend on premium alcoholic drinks when dining out or socializing with friends. They see alcohol consumption as a sign of social status.
Alcohol manufacturers have cleverly targeted this segment through innovative products, premium branding, and attractive packaging. Aggressive marketing campaigns on digital platforms have also increased visibility.
Overall, the growing middle-class population with higher spending power has enhanced the addressable market for premium alcohol brands. However, much of the increased income is still being spent in the lower-priced alcohol segment as well which also aids the overall category growth.
Society and culture play a big role in shaping consumption behaviors. India society is known to have deep-rooted conservative views when it comes to alcohol consumption historically. However, over the past decade, social attitudes have started evolving at a fast pace, especially in urban areas.
Young Indians today have more exposure to global culture through easy access to media and internet. They are comfortable socializing over drinks and do not necessarily see alcohol as a vice anymore. Even in smaller towns and cities, people have become more open-minded about casual drinking. Changing mindsets have made alcohol more acceptable as a means of socialization, relaxation, and enjoyment rather than just inebriation.
Alcohol companies promoting a moderate drinking lifestyle through their branding and responsible consumption campaigns have also helped mold positive social perceptions. Greater social acceptability of alcohol coupled with consumers' desire to socialize more freely is working in favor of the market.
Social standards, demographic shifts, and changing consumer tastes are all having an impact on the dynamically changing Indian alcohol market. With urban and younger consumers increasingly seeking out premium, artisan, and foreign spirits, premiumization is a prominent trend that is propelling strong development in the premium and super-premium segments.
Demand for distinctive flavors, origin tales, and artisanal craftsmanship has increased as a result of consumers' increased ability to explore options beyond budget-friendly, mass-market options due to rising disposable incomes and the growing middle class.
The Indian alcohol market has seen significant changes over the past few years with the rising popularity of premium and craft alcohol. Consumers are increasingly seeking unique drinking experiences and are willing to pay more for higher quality drinks that are produced using traditional or novel methods. This premiumization trend provides excellent opportunities for growth in the Indian market.
More Indian consumers, especially millennials and Gen Z, are exploring craft beers, wines & spirits and cocktails. They want artisanal products that have an interesting story and flavor profile. Traditional liquors like fenny and daru are also seeing renewed interest from urban populations who want to experiment with indigenous drinks.
Several small craft brands have emerged who are handcrafting unique products using organic ingredients, innovative recipes, or reviving legacy techniques. For example, breweries in certain northeastern states are infusing beers with indigenous herbs and spices. Similarly, distilleries in Maharashtra, Goa and Sikkim are crafting novel single malts, gins and organic country liquors.
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About Author
Sakshi Suryawanshi is a Research Consultant with 6 years of extensive experience in market research and consulting. She is proficient in market estimation, competitive analysis, and patent analysis. Sakshi excels in identifying market trends and evaluating competitive landscapes to provide actionable insights that drive strategic decision-making. Her expertise helps businesses navigate complex market dynamics and achieve their objectives effectively.
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