India Alcohol Market Report and Forecast 2025-2034

India Alcohol Market Outlook

The India alcohol market size reached approximately USD 64.19 billion in 2023. The market is assessed to grow at a CAGR of 6.7% between 2024 and 2032 to attain a value of around USD 115.27 billion by 2032.

Key Trends in the Market

Alcohol refers to a psychoactive substance that is typically made by fermenting grains, vegetables, or fruits. It can suppress brain activities and change behaviour, mood, coordination, and self-control. Excessive consumption of alcohol is associated with various health issues, including mental disorders and cardiovascular diseases, among others.

• The India alcohol market demand is likely to be fuelled by favourable government initiatives aimed at lowering the legal drinking age and facilitating home delivery of alcohol via online portals and mobile apps. With the Indian government promoting localisation, there is an increasing preference for indigenous and native alcohol, especially among the millennial and Gen-Z population.

• Evolving drinking culture, the surging acceptance of alcohol on social occasions, and the growing trend of in-home occasion-led alcohol consumption are positively influencing the India alcohol market growth. India is also witnessing a wave of start-ups offering innovative and local alcoholic beverages with distinct flavours, enhanced appeal, and premium packaging, improving the popularity of local liquors in the country.

• Some of the key India alcohol market trends include the rising popularity of premium alcohol like gin, tequila, and single malt whiskey. Retailers and key players are also capitalising on the trend by offering high-quality premium alcoholic beverages.

Market Analysis

Based on type, the market is segmented into beer, Indian made foreign liquour (IMFL), Indian made liquour (IML), and alcopop/sweetened alcoholic beverages, among others. On the basis of raw material, the India alcohol market segmentation includes ENA, molasses, corn, jowar, bajra, malt spirit-barley, and graph spirit, among others. The major regional markets for alcohol in India include North India, South India, West India, and East India.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the India alcohol market, covering their competitive landscape and latest developments like mergers, acquisitions, investments and expansion plans.

• Radico Khaitan Ltd.

• Pernod Ricard India Private Ltd.

• United Spirits Ltd

• Globus Spirits Limited

• Jagatjit Industries Limited

• Mohan Meakin Ltd

• Sula Vineyards Ltd

• United Breweries Ltd

• Som Distilleries and Breweries Ltd

• Tilaknagar Industries Ltd

• Others

Market Share by Region

North and West India represent a major portion of the India alcohol market share due to the increasing number of distilleries and microbreweries in the region. The evolving spending habits of the working population and the growing availability of different types of alcoholic beverages are fuelling the market growth in these regions.

With various social activities centred around alcohol and the marketing of alcohol as a relaxing and feel-good drink, the demand for alcoholic beverages among women in North and West India is considerably rising. Besides, the trend of social drinking is expected to drive the demand for premium alcoholic beverages, especially among the Gen-Z and millennial populations, in the coming years.

Market Share by Type

According to the India alcohol market analysis, beer accounts for a substantial market share. The growing middle-class population in the country is increasingly spending on alcoholic beverages, including beer, that are widely accessible. In addition to this, with the growing influence of social media and the increasing trend of globalisation and westernisation, the demand for beer is significantly rising.

There is a growing popularity of craft beer in the country, especially among the young population, leading to an increase in the number of microbreweries in cities such as Pune, Bangalore, Mumbai, and Delhi. The rising availability of different types of beer with diverse flavours and favourable initiatives by local governments to support the expansion of microbreweries in tier-II and III cities are likely to drive the India alcohol market expansion in the coming years.

Competitive Landscape

Sula Vineyards Ltd, established in 1996, is one of the pioneers in the Indian wine sector.  Headquartered in Mumbai, Maharashtra, the company has wineries in India’s leading grape-growing regions like Karnataka and Maharashtra. Through its products, the company aims to promote the art of winemaking in India.

Radico Khaitan Ltd. is a leading Indian manufacturer of Indian Made Foreign Liquor (IMFL). It was established in 1943 and owns nearly 15 famous alcohol brands like Old Admiral Brandy and 8PM Whisky, among others. The company owns distilleries in Aurangabad, Maharashtra, and Rampur, Uttar Pradesh.

Pernod Ricard India Private Ltd., a subsidiary of Pernod Ricard SA, is a leading Indian alcohol beverage company. Some of the prominent brands of the company are Blenders Pride, Imperial Blue, and Royal Stag. It has over 30 bottling plants, a winery in Nashik, and distilleries in Behror, Rajasthan, and Nashik, Maharashtra.

Other India alcohol market players include United Spirits Ltd, Globus Spirits Limited, Jagatjit Industries Limited, Mohan Meakin Ltd, United Breweries Ltd, Som Distilleries and Breweries Ltd, and Tilaknagar Industries Ltd, among others.

Key Highlights of the Report