New Delhi: India’s alcoholic beverage market is defying global trends, with demand for premium liquor rising sharply even as consumers in several international markets shift towards lower-priced alternatives.
According to data from IWSR, India’s premium and super-premium liquor segments recorded around 9% growth in volume and 12% growth in value in 2025. This comes at a time when global beverage alcohol consumption has declined across major markets.
Global slowdown contrasts India’s growth
Across 22 key global markets tracked by IWSR accounting for nearly three-fourths of worldwide consumption total beverage alcohol volumes fell by 2% and overall value declined by 4% last year. This marked the first such drop since 2020, reflecting weaker consumer sentiment and tightening spending.
In contrast, India posted a 4% increase in overall volume and a 5% rise in value, highlighting the country’s resilience even amid inflationary pressures and cautious consumption patterns.
Premiumisation drives Indian market
Industry experts attribute India’s growth to a strong “premiumisation” trend, where consumers increasingly prefer higher-quality products over cheaper alternatives.
Neeraj Kumar, Managing Director of Suntory Global Spirits India, said that Indian consumers are opting for premium whiskies and high-end white spirits, focusing more on value than sheer volume.
This shift is being driven by changing lifestyles, rising disposable incomes, and growing exposure to global consumption patterns.
Multinational firms bet on India
Global liquor companies are increasingly viewing India as a key growth market. Pernod Ricard reported an 11% growth in India for the March quarter, underlining the country’s importance as its second-largest market globally.
Executives from multinational firms have indicated that while strategies in global markets are shifting towards affordability and volume, India continues to support premium-focused portfolios.
Market size and challenges
India remains the world’s largest spirits market by volume, with consumption exceeding 410 million cases annually. However, premium and luxury segments still account for less than 5% of the total market.
High import duties and pricing constraints continue to limit the expansion of premium categories. A significant portion of the population still relies on low-cost or unbranded liquor.
Middle class fuels demand
A key factor behind the premium growth story is India’s expanding middle class, estimated at around 15 crore people. This segment is increasingly willing to spend on quality products, including premium alcoholic beverages.
As aspirations rise and urban consumption patterns evolve, the demand for premium offerings is expected to strengthen further in the coming years.
Conclusion
India’s premium liquor market is standing out amid a global slowdown, driven by shifting consumer preferences and strong economic fundamentals. While challenges such as pricing and accessibility remain, the country’s growing middle class and evolving tastes position it as a crucial market for global spirits companies.