Alcoholic drinks in 2024: The big picture
India’s alcoholic drinks industry stood out globally in 2024, with a growth proving to be substantially stronger than that recorded in other countries. This growth was driven primarily by a low base, robust macroeconomic growth and the country’s unique demographic composition. India has a young demographic profile, with a median age of 29.4 years, including around 330 million millennials and 382 million members of Generation Z. The sizeable Generation Z cohort means that many individuals enter the legal drinking age every year. India remains an outlier as a traditionally spirits-led market, with spirits accounting for the majority of total volume consumption and whiskies as the largest subcategory. This contrasts sharply with most countries, where beer is by far the leading alcoholic drinks category.
2024 key trends
Beer continued to grow at a stable rate in 2024, even after a few hiccups. The category was supported by warm weather, though saw low per-capita consumption of just two litres, compared with a global average of 25 litres. The Lok Sabha elections, which coincided with the second quarter of the calendar year and the peak season for beer, limited the category’s volume potential. However, the fourth quarter, which overlaps with the festive season, witnessed a noticeable uptick in demand. Volume growth was further constrained by supply suspensions in Telangana and an increase in excise duty in Karnataka. India’s vast geography and cultural diversity also mean significant regional variations in beer consumption. Prolonged heatwaves, particularly in North India, tend to drive higher demand, with sales largely concentrated in the summer months of the second quarter. By contrast, central and southern states typically see more stable beer consumption throughout the year.
Competitive landscape
Beer in India is dominated by GBOs Heineken NV, Carlsberg A/S, and Anheuser-Busch InBev NV (AB InBev) in global brand owner terms, which together controlled over 75% of the category in total volume terms in 2024. Heineken, following its acquisition of UB Group, holds the largest share of sales. Its success can be attributed to its extensive distribution, diverse manufacturing, and strong brand portfolio, including Kingfisher. AB InBev, having acquired SABMiller, has also gained significant share through brands such as Budweiser and Corona. Carlsberg, with the Tuborg and Carlsberg brands, caters to the mid-priced and premium segments, respectively. As consumer preferences evolve, companies are increasingly focusing on premium brands to drive growth.
Retail developments
Large-format retailers have gained ground in India to meet the increasing demand for premium products. Stores such as Mansionz and Tonique feature dedicated sections for different categories, tasting rooms, and luxurious shopping experiences. For instance, Mansionz allows customers to sample high-end alcoholic drinks before making a purchase, promoting experimentation and boosting sales of premium brands. These stores particularly appeal to women, as traditional retail outlets in India often lack a safe and comfortable environment, and do not offer the same level of variety or opportunity to explore different categories and brands. The country, with a 1.4 billion population, has fewer than 100,000 outlets across the country, which limits the potential of the industry.
On-trade vs off-trade split
On-trade continues to grow at a strong and steady pace. The beer category has seen positive developments, with India home to more than 460 microbreweries. These establishments help drive beer sales by acting as discovery points for young adults, given their ability to experiment with ingredients and offer freshly brewed beer. Similarly, the rise of cocktail bars is supporting on-trade growth. However, cost of living pressures and the increasing prevalence of nuclear families have made house parties more popular, which continues to limit on-trade from reaching its full potential.
What next for alcoholic drinks?
India’s young population, combined with strong macroeconomic growth and low per-capita consumption of alcoholic drinks, ensures that the country will remain a key growth market for alcoholic drinks, with robust rises in terms of absolute volume consumption through the forecast period. The consumer landscape is undergoing a significant transformation, driven by demographic shifts such as rapid urbanisation and population growth. As more Indians pursue better education and career opportunities, urban populations are expected to expand steadily. By 2029, two in five people in India are projected to live in urban areas, which typically have higher per-capita disposable incomes than rural regions. With real GDP growth expected to outpace inflation during the period 2024-2029, rising income levels are set to drive higher consumer expenditure across multiple sectors.
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Overview:
Understand the latest market trends and future growth opportunities for the Alcoholic Drinks industry in India with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Beer
- Wine
- Spirits
- Cider and Perry
- RTDs
If you're in the Alcoholic Drinks industry in India, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty
The Alcoholic Drinks in India report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Alcoholic Drinks in India?
- Where is consumer demand for Alcoholic Drinks focussed?
- Which is being consumed more; beer, wine or spirits?
- Where is demand growing? Stagnating?
- How is the operating environment for alcoholic drinks changing?
- Which are the leading brands in India?
- How are products distributed in India?
- What are the key trends in new product development?
- Do consumers want value for money or added value?
- How will macroeconomic context and shifting cultural values shape future growth?
- How will COVID-19 and recession impact the alcoholic drinks industry?
- Where is future growth expected to be most dynamic?
Alcoholic Drinks in India
Alcoholic drinks in 2024: The big picture
2024 key trends
Competitive landscape
Retail developments
On-trade vs off-trade split
What next for alcoholic drinks?
Legislation
Legal purchasing age and legal drinking age
Drink driving
Advertising
Smoking ban
Opening hours
Contraband/parallel trade
Duty free
Cross-border/private imports
Outlook
DISCLAIMER
Beer in India
KEY DATA FINDINGS
Beer continues to grow at a steady pace in 2024
UB Group leads the oligopoly in beer in India
Lack of differentiation in taxation between low ABV and high ABV categories, coupled with the inability to set prices, restricts growth of beer
Companies set to continue focus on premiumisation as India develops at a rapid pace
Microbreweries will aid the growth of beer in India
Retail e-commerce remains underdeveloped with scope for expansion
Lager price band methodology
Rtds in India
KEY DATA FINDINGS
Young demographic and convenience trend drive sales of RTDs in India
Bacardi-Martini retains its dominance, assisted by launch of new options
Hard seltzer fails to attract Indian consumers
Inflation and taxation remain the biggest challenges for RTDs
Spirit-based RTDs likely to grow, but face increased competition from other variants
Spirits in India
KEY DATA FINDINGS
Overall growth holds steady despite slight momentum loss in brown spirits
United Spirits leads, followed by host of Indian companies
Exports a significant avenue for whisky manufacturers to drive topline growth, as locally produced premium offerings gain wider acceptance in global markets
India-UK FTA expected to boost scotch whisky consumption in India
Companies will continue to struggle with their bottom line as they are unable to set prices
India anticipated to lead shift of whisky consumption to developing market
Vodka, gin, other blended Scotch whisky, dark rum and white rum price band methodology
Wine in India
KEY DATA FINDINGS
Millennials and a low consumer base drive category growth in 2024
Samant Soma Wines leads wine thanks to extensive product range and strong focus on wine tourism
India is witnessing demand for imported wines from various countries
India likely to continue to see a rise in experiential stores during forecast period
Small domestic manufacturers seek to carve out niche positions for non-grape wines in export markets
The following categories and subcategories are included:
Alcoholic Drinks
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- Ale
- Sorghum
- Weissbier/Weizen/Wheat Beer
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- Flavoured/Mixed Lager
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- Domestic Premium Lager
- Imported Premium Lager
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- Domestic Mid-Priced Lager
- Imported Mid-Priced Lager
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- Domestic Economy Lager
- Imported Economy Lager
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- Domestic Premium Lager
- Domestic Mid-Priced Lager
- Domestic Economy Lager
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- Imported Premium Lager
- Imported Mid-Priced Lager
- Imported Economy Lager
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- Low Alcohol Beer
- Non Alcoholic Beer
- Stout
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- Regular Cider/Perry
- Non Alcoholic Cider/Perry
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- Malt-based RTDs
- Spirit-based RTDs
- Wine-based RTDs
- Other RTDs
- Non Alcoholic RTDs
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- Brandy
- Cognac
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- Bitters
- Cream-based Liqueurs
- Other Liqueurs
- Non Alcoholic Spirits
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- Prestige Dark Rum
- Ultra Premium Dark Rum
- Super Premium Dark Rum
- Premium Dark Rum
- Standard Dark Rum
- Economy Dark Rum
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- Prestige White Rum
- Ultra Premium White Rum
- Super Premium White Rum
- Premium White Rum
- Standard White Rum
- Economy White Rum
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- Tequila (and Mezcal)
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- Bourbon/Other US Whiskey
- Canadian Whisky
- Irish Whiskey
- Japanese Whisky
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- Blended Malt Scotch Whisky
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- Prestige Other Blended Scotch Whisky
- Ultra Premium Other Blended Scotch Whisky
- Super Premium Other Blended Scotch Whisky
- Premium Other Blended Scotch Whisky
- Standard Other Blended Scotch Whisky
- Economy Other Blended Scotch Whisky
- Single Grain Scotch Whisky
- Single Malt Scotch Whisky
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- Other Whiskies
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- Prestige English Gin
- Ultra Premium English Gin
- Super Premium English Gin
- Premium English Gin
- Standard English Gin
- Economy English Gin
- Dutch Gin
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- Prestige Vodka
- Ultra Premium Vodka
- Super Premium Vodka
- Premium Vodka
- Standard Vodka
- Economy Vodka
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- Absinthe
- Ad-Mix Brandy
- Ad-Mix Gin
- Ad-Mix Rum
- Ad-Mix Vodka
- Ad-Mix Whisky
- Aguardente/Aguardiente
- Aguardiente De Caña
- Akvavit/Aquavit
- Aniseed-Flavoured Spirits
- Borovicka
- Boukha
- Brandy Type Distilled Spirits
- Cachaça
- Calvados
- Cane
- Chacha
- Charanda
- Chinese Herbal Spirits
- Chinese Spirits
- Cut Brandy
- Destilados De Agave
- Distilled Fruit Spirits
- Domestic Brandy
- Domestic Rum
- Doppelkorn
- Economy Chinese Spirits
- Flavoured Spirits
- Flavoured Vodka-based Drinks
- Fynbos gin/Local Gin
- Gin-flavoured spirits
- Goldbrand/Goldkrone
- Grappa
- Grappamiel
- Guaro
- Kirsch
- Komovica
- Korn
- Lambanog
- Limoncello
- Local White Spirits
- Lower Mid-Range Chinese Spirits
- Lozovaca
- Maesilju
- Mahia Rabi Amrane
- Mead
- Mixed Spirits
- Nalivka/Nalewka
- Nastoyka
- National Specialities
- Obstbrände
- Ouzo
- Pacharán
- Palinca/Pálinka
- Pear and Apple Distillates
- Pisco
- Premium Chinese Spirits
- Prune
- Punsch
- Rachiu/Rakija
- Rum-Flavoured Spirits
- Samane
- Sambuca
- Samsu
- Schnapps
- Shochu/Soju
- Singani
- Sljivovica/Slivovice
- Steinhäeger
- Strong African Spirits
- Super Premium Chinese Spirits
- Sura Khao
- Tequila Flavoured Spirits
- Travarica
- Tsipouro
- Upper Mid-Range Chinese Spirits
- Vieux
- Viina
- Vodka Type Distilled Spirits
- Other Distilled Beverages
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- Port
- Sherry
- Vermouth
- Other Fortified Wine
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- Apple Wine
- Bokbunjaju
- Cheongju
- Chinese Wine
- Economy Rice Wine
- Fortified Fruit Wine
- Fruit and Berry Wine
- Fruit and Herbal Wine
- Fruit and Honey based Wine
- Fruit Wine
- Lower Mid-Range Rice Wine
- Non-Grape Dessert Wine
- Premium Rice Wine
- Sake
- Takju
- Upper Mid-Range Rice Wine
- Yakju
- Yellow Wine
- Other Non-Grape Wine
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- Champagne
- Other Sparkling Wine
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- Still Red Wine
- Still Rosé Wine
- Still White Wine
- Non Alcoholic Wine
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Alcoholic Drinks
Alcoholic drinks is the aggregation of beer, wine, spirits, cider/perry and RTDs.
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This report originates from Passport, our Alcoholic Drinks research and analysis database.
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