The India alcohol market was valued at USD 68.49 Billion in 2025. The industry is expected to grow at a CAGR of 6.70% during the forecast period of 2026-2035 to reach a value of USD 131.00 Billion by 2035. This market growth is primarily the result of the increasing government policy support as regulatory reforms and investment-friendly schemes are creating a strong foundation for both domestic and international players.
Over the years, the government has introduced measures that not only encourage foreign investment but also provide incentives for local production and value addition. These policies are reshaping the sector into a more organized and innovation-driven market, ensuring that both traditional and modern alcoholic beverages gain wider acceptance. Such initiatives are positively impacting the India alcohol market value, supporting sustainable growth.
A major step has been the decision to allow 100% FDI under the automatic route in brewing and distillation since February 2025. This move has attracted several multinational companies that see India as a long-term growth opportunity. By opening doors to global players, the government has created conditions for modern technologies, advanced production practices, and new product lines to enter the country, contributing to the growth of the alcohol industry.
At the state level, subsidies in regions like Karnataka and Uttar Pradesh are supporting grape cultivation. This policy has boosted domestic wine production and encouraged local farmers to become part of the supply chain, reflecting emerging India alcohol market opportunities.
Another important reform has come from the Food Safety and Standards Authority of India (FSSAI). In 2023 , the body updated standards that encouraged the production of craft beers and low-alcohol beverages. These reforms have opened space for niche segments, promoting responsible alcohol consumption in India and offering consumers greater choice.
Together, these measures highlight how the government is actively shaping the sector’s future. By promoting investment, innovation, and diversification, the market players are steadily expanding their reach across urban and semi-urban centers. With continued policy backing, the India alcohol market is positioned for long-term growth.
Base Year
Historical Period
Forecast Period
Compound Annual Growth Rate
6.7%
Value in USD Billion
2026-2035
*this image is indicative*
Premiumization culture is a driving notable growth in the India alcohol market, with consumers increasingly shifting from mass-market options to aspirational, high-quality products. The rise in disposable incomes, rapid urbanization, and exposure to global lifestyles are fueling demand for premium spirits, imported beverages, and craft innovations. Younger consumers are especially drawn to unique flavors, exclusivity, and strong brand stories, pushing companies to upgrade their offerings. For instance, Diageo India’s 2023 premium push with Brand Cellar 33’s launch of craft spirits underlines this accelerating trend.
Women are expanding the India alcohol market scope, emerging as a vital force behind its expansion. A clear example comes from Diageo India, which reported in 2024 that women drove 64% of single malt whisky growth. Greater financial independence, evolving lifestyles, and shifting social norms are empowering female consumers to embrace premium spirits, especially whisky. This demographic shift is inspiring brands to reimagine offerings with flavor-forward profiles and cocktail-friendly blends that resonate with women’s preferences. For instance, whisky clubs like The Dram Club now count nearly half their members as women, underscoring this transformative trend.
Ready-to-drink (RTD) cocktails are emerging as a prominent trend in India alcohol market, appealing to young consumers who seek convenience, flavor, and individuality. These products fit modern lifestyles, where drinks reflect personality and social experiences as much as taste. The segment is expanding quickly as brands introduce innovative flavors and accessible formats that move away from traditional drinking norms. A prime example is Grover Vineyards’ launch of Misfit in September 2025, India’s first crafted sparkling RTD cocktail, designed to promote self-expression and make cocktails more approachable and fun.
Traditional and heritage spirits revival is a notable factor boosting growth of the India alcohol market, supported by rising consumer interest in authenticity, cultural identity, and premium local beverages. As urban consumers seek unique experiences, indigenous drinks like Mahua and Feni are gaining recognition, creating new opportunities for brands to position them as aspirational products. This trend is further reinforced by the premiumization wave, which has elevated craft and heritage-inspired offerings into high-value categories. For instance, Radico Khaitan’s Rampur Indian Single Malt, a 2023 global award-winner, reflects how traditional spirits can command premium pricing and attract both domestic and global demand.
The rise of online liquor delivery has become one of the major India alcohol market trends, shaped by shifting consumer behavior and digital adoption. Younger audiences, expats, and women increasingly prefer the ease and discretion of home delivery over traditional stores. States including Delhi, Karnataka, Haryana, Punjab, Tamil Nadu, Goa, and Kerala are piloting projects, beginning with low-alcohol beverages like beer, wine, and liqueurs. With platforms such as Swiggy and Zomato ensuring age verification and compliance, online delivery offers safer, regulated, and more convenient alcohol access across urban centers.
The EMR’s report titled “India Alcohol Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Type
Key Insight: Beer holds the largest share of the India alcohol market revenue, driven by rising urban demand, youth preference for lighter beverages, and the growing popularity of craft breweries. Indian Made Foreign Liquor (IMFL) is the fastest growing segment, fueled by premiumization, rising disposable incomes, and wider availability of whiskey, rum, and vodka. Indian Made Liquor (IML) continues to thrive on affordability and strong rural demand, while alcopops and sweetened alcoholic beverages are gaining traction among younger consumers seeking flavored and low-alcohol options. The “Others” category, including wine and cider, is expanding steadily due to health-conscious choices and state-level support.
Market Breakup by Availability of the Raw Material
Key Insight: Ethanol (ENA) remains the predominant raw material in the India alcohol industry, supported by government ethanol blending policies enhancing supply and production capacity. Molasses, a sugarcane byproduct, fuels most of the alcohol production in India, mainly in Maharashtra and Uttar Pradesh. Barley malt underpins craft beers and premium whiskies, reflecting a consumer shift toward premium quality. Traditional grains like jowar and bajra retain importance in regional spirits. Corn and graph spirit are niche raw materials for specific regional and artisanal beverages. This diverse raw material base supports the varied alcoholic beverage categories and regional manufacturing specializations across India.
Market Breakup by Region
Key Insight: North India commands the largest share of alcohol consumption in India, mainly driven by whisky and IMFL demand, supported by a growing urban middle class. South India leads beer consumption, led by a strong nightlife culture and liberalized liquor policies across states. East India is a high-growth region with increasing urbanization and retail penetration driving spirits and beer sales. West India shows a balanced preference with growing demand for whisky, rum, and imports due to cosmopolitan urban populations and tourism hubs. Regional preferences highlight India’s complex cultural, economic, and demographic diversity influencing alcohol consumption trends.
By type, beer witnesses high demand
Beer represents the biggest portion of demand in India alcohol market, propelled by urban youth adopting beer as a social and lifestyle drink. United Breweries’ 2024 launch of Amstel Grande strong beer aimed at millennials highlights innovation driving growth. This variant, along with emerging craft beer brands, caters to evolving tastes favoring premium, flavored, and convenient options. Lowered excise duties in states like Telangana have spurred capacity expansions and new product introductions, further fueling demand for beer in India.
Indian Made Foreign Liquor (IMFL) is led by premiumization, with whisky as the dominant driver. Radico Khaitan’s 2025 launch of Morpheus Super Premium Whisky in Uttar Pradesh exemplifies this trend. Crafted from imported Scotch malts and Indian grain spirits, aged in bourbon barrels, Morpheus targets aspirational consumers seeking luxury at accessible prices. This launch enhances Radico Khaitan’s position in one of India’s fastest-growing premium whisky markets, reflecting the growing demand for sophisticated, high-quality spirits in urban and emerging regions.
By raw material, ENA holds the largest share of the market
Ethanol (ENA) dominates as the preferred raw material in India alcohol market, supported strongly by government ethanol blending policies aimed at reducing fossil fuel dependence. For example, Jubilant Ingrevia operates state-of-the-art plants in Uttar Pradesh and Maharashtra with a combined capacity of 250,000 liters per day, significantly contributing to ethanol supply for the country’s spirits and biofuel sectors as of March 2025. This robust production capacity underpins the industry's ability to meet growing demand while aligning with sustainability goals.
Molasses, a key byproduct of sugarcane processing, serves as a critical driver for spirit production in India, particularly in sugarcane-abundant states. Its widespread availability ensures a steady and cost-effective raw material supply for the manufacturing of various alcoholic beverages. By leveraging regional resources and advanced production techniques, the industry can enhance both capacity and quality, supporting the growth of alcohol industry in India. The strategic use of molasses underpins efficiency in production while enabling the expansion of diverse spirit categories across the country.
By region, North India dominates the market growth
North India accounts for the largest share of alcohol consumption across India, heavily driven by whisky and IMFL demand, boosted by an expanding urban middle class and rising incomes. Radico Khaitan’s May 2025 launch of Morpheus Super Premium Whisky in Uttar Pradesh serves as a prime example of catering to premiumization trends and evolving consumer preferences in this region. The launch highlights how companies focus on sophisticated brands that appeal to whisky lovers seeking quality and exclusivity, thereby creating significant India alcohol market growth opportunities.
South India is the fastest-growing regional segment, with beer consumption rising sharply due to a vibrant nightlife culture and regulatory liberalization. In August 2024, Sula Vineyards expanded its footprint by opening a new microbrewery in Bangalore, offering craft beers that attracted young urban consumers. The region’s relaxed regulations on alcohol sales have encouraged such innovations, fueling beer’s acceptance as a popular social beverage and accelerating market growth in South India.
Prominent alcohol companies in India are increasingly focusing on premiumization and product innovation to capture evolving consumer tastes. Companies like Radico Khaitan and United Spirits are enhancing their premium portfolios with single malts and craft spirits to target urban and affluent consumers. Strategic brand building, coupled with digital marketing and experiential campaigns, helps engage younger demographics. Expanding distribution networks into Tier 2 and Tier 3 cities is another vital strategy to boost accessibility and volume growth beyond metros.
Additionally, collaboration and partnerships play a crucial role in market expansion. Pernod Ricard India has leveraged global expertise through joint ventures to introduce international premium brands. Many India alcohol market players are investing in sustainable practices, such as eco-friendly packaging and responsible drinking initiatives, aligning with growing consumer awareness. Innovations in ready-to-drink products and flavored alcoholic beverages further attract new customer segments, particularly millennials and women, broadening the overall market base.
Radico Khaitan Ltd., established in 1943 and headquartered in New Delhi, is one of India’s oldest and largest manufacturers of Indian Made Foreign Liquor (IMFL). Known for brands like 8 PM Whisky, Rampur Indian Single Malt, and Magic Moments Vodka, it has grown from a bulk alcohol supplier to a prominent branded spirits company with an extensive nationwide distribution network.
Pernod Ricard India Private Ltd., headquartered in Mumbai and founded in 1992, is the Indian subsidiary of the global Pernod Ricard group. The company offers a wide portfolio of premium brands like Chivas Regal, Royal Stag, and Absolut Vodka, focusing on urban consumers and premiumization trends in India’s growing spirits market.
United Spirits Ltd., established in 1826 and based in Bangalore, is India’s largest spirits company and a subsidiary of the global Diageo group. Famous for brands such as McDowell’s No.1, Royal Challenge, and Signature, United Spirits has a wide presence across the India alcohol market landscape.
Globus Spirits Limited, founded in 1992 and headquartered in Hyderabad, specializes in Indian Made Foreign Liquor and country liquors. With popular brands like Magic Moments Vodka, Globus has developed a strong footprint in both urban and rural markets, focusing on quality and affordable liquor options.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other players in the India alcohol industry landscape include Jagatjit Industries Limited, Mohan Meakin Ltd., Sula Vineyards Ltd., United Breweries Ltd., Som Distilleries and Breweries Ltd., Tilaknagar Industries Ltd., and a few other prominent firms.
Explore the latest trends shaping the India Alcohol Market 2026-2035 with our in-depth report. Gain strategic insights, future forecasts, and key market developments that can help you stay competitive. Get a free sample report or contact our team for customized consultation on India alcohol market trends 2026.
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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2025, the India alcohol market reached an approximate value of USD 68.49 Billion.
The market is projected to grow at a CAGR of 6.70% between 2026 and 2035.
The market is estimated to witness a healthy growth in the forecast period of 2026-2035 to reach about USD 131.00 Billion by 2035.
Key strategies driving the market include government policies supporting ethanol production, investment-friendly schemes for distilleries, and incentives promoting modernization and premiumization.
The premiumisation of alcohol, the increasing consumption of alcoholic beverages by women, and the expansion of distilleries and microbreweries are the key trends aiding the market demand.
The major regions in the market are North India, West India, South India, and East India.
The major types of alcohol in the market are beer, Indian made foreign liquour (IMFL), Indian made liquour (IML), and alcopop/sweetened alcoholic beverages, among others.
The different raw materials of alcohol are ENA, molasses, corn, jowar, bajra, malt spirit-barley, and graph spirit, among others.
The key players in the market include 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., and others.
Maharashtra accounts for the largest share of the India alcohol industry, driven by urban demand, high consumption rates, and a strong presence of distilleries and alcohol brands.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Type |
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| Breakup by Availability of the Raw Material |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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