India’s premium alcohol market grows as global consumption declines – IWSR 

INDIA – India’s alcoholic beverage market is showing strong resilience, with premium liquor demand rising even as global consumption trends weaken, according to new data from IWSR. 

The country’s premium and super-premium segments recorded approximately 9% growth in volume and 12% growth in value in 2025. This contrasts sharply with global trends, where beverage alcohol consumption declined across major markets. 

Across 22 key global markets tracked by IWSR—accounting for nearly three-quarters of worldwide consumption—total beverage alcohol volumes fell by 2%, while overall value declined by 4% in 2025.  

The downturn 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 strength of its domestic market despite inflationary pressures and cautious consumer behavior. 

Industry leaders attribute this growth to a strong premiumisation trend, with consumers shifting toward higher-quality products. Neeraj Kumar said Indian consumers are increasingly prioritising quality over quantity. 

“Indian consumers are opting for premium whiskies and high-end white spirits, focusing more on value than sheer volume,” Kumar said. 

This shift is being driven by evolving lifestyles, rising disposable incomes, and increased exposure to global consumption patterns. As a result, multinational beverage companies are intensifying their focus on India as a key growth market. 

Pernod Ricard reported an 11% growth in India for the March quarter, underscoring the country’s strategic importance as its second-largest market globally. 

India remains the world’s largest spirits market by volume, with consumption exceeding 410 million cases annually. However, premium and luxury categories still account for less than 5% of total consumption, indicating significant headroom for growth. 

Despite the positive outlook, structural challenges remain. High import duties and pricing constraints continue to limit the expansion of premium segments, while a large portion of the population still depends on low-cost or unbranded liquor. 

The country’s growing middle class—estimated at around 150 million people—is playing a central role in driving demand for premium products. As incomes rise and urban consumption patterns evolve, the appetite for higher-quality alcoholic beverages is expected to strengthen further. 

India’s performance highlights a divergence from global trends, positioning the country as a key driver of growth for premium alcohol brands worldwide. 

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