"We Deliver Industry News & Insights to Drive Your Business Forward"

Market Research Report: India’s Alcoholic Beverage Market (2025-2030)

India’s Alcoholic Beverage Market stood at USD 56.5 billion in 2024 and is poised to reach USD 140 billion by 2030, growing at a CAGR of 7.4%. Fueled by premiumization, digital expansion, and evolving consumer preferences, the sector offers lucrative investment opportunities. Explore market trends, key players, and future growth prospects with Hardman Market Insights.

1. Market Overview

India’s alcoholic beverage (alco-bev) industry is one of the fastest-growing segments in the country’s consumer market, driven by a combination of economic growth, rising disposable incomes, evolving social norms, and increasing urbanization. As of 2024, the Indian alco-bev market was valued at USD 56.5 billion, and it is projected to grow at a Compound Annual Growth Rate (CAGR) of 7.4%, reaching USD 113.8 billion by 2030. This growth trajectory is supported by a surge in consumer demand, premiumization trends, policy reforms, and the expansion of digital and retail distribution channels.

The industry encompasses four major categories:

  • Indian Made Foreign Liquor (IMFL) – Includes whisky, vodka, rum, gin, and brandy produced in India.
  • Beer – Lager, stout, and craft beer segments with increasing popularity among younger consumers.
  • Wine – A niche but rapidly growing segment, driven by urban consumers and the rising culture of wine consumption.
  • Country Liquor – Traditional spirits that dominate rural markets, accounting for a significant portion of overall consumption.

2. Key Market Segments & Performance

2.1 Indian Made Foreign Liquor (IMFL)

IMFL dominates the alco-bev industry in India, constituting over 65% of total market sales. The whisky segment leads IMFL consumption, accounting for more than 60% of total liquor sales in India.

  • In 2023, India consumed 395 million cases of IMFL, registering a 9% growth from the previous year.
  • By 2030, IMFL sales are expected to grow significantly, driven by higher per capita consumption and premiumization trends.
  • Major players such as United Spirits (Diageo India), Radico Khaitan, and Pernod Ricard India continue to invest in premium product lines to cater to evolving consumer preferences.

2.2 Beer Market

The beer industry in India has undergone significant transformation over the last decade, with a growing preference for craft beers, low-alcohol beverages, and premium lagers.

  • The beer market was valued at USD 14.2 billion in 2023 and is projected to grow to USD 26.1 billion by 2030.
  • The sector is witnessing a shift from mass-produced strong beer (8%+ alcohol content) to lower-alcohol and premium beer segments.
  • Growth is further fueled by the entry of international brands and the rise of domestic craft breweries such as Bira 91, Simba, and White Owl.

2.3 Wine Market

Although India’s wine consumption remains low compared to global standards, it is witnessing an 11.5% year-on-year growth, driven by an increase in female and urban consumers.

  • The total wine market size in 2024 stood at approximately USD 400 million.
  • By 2030, the wine segment is expected to grow at a CAGR of 12.5%, with increasing adoption among millennials and working professionals.
  • Leading wineries such as Sula Vineyards, Fratelli Wines, and Grover Zampa continue to expand their production capacity and export presence.

3. Emerging Trends Driving Market Growth

3.1 Premiumization & Changing Consumer Preferences

Indian consumers are shifting towards premium and ultra-premium alcoholic beverages, particularly in urban areas. The premium segment, priced at INR 1,500+ per bottle, has witnessed a 15% increase in demand over the last two years. Premium whisky, craft gin, and aged rum are gaining popularity, with brands such as Rampur Indian Single Malt, Hapusa Gin, and Paul John Whisky leading the way.

3.2 Rise of Craft Spirits & Innovation

Craft spirits, particularly gin and artisanal whisky, are experiencing a boom. Brands such as Greater Than Gin, Stranger & Sons, and Short Story Gin are gaining consumer traction. The craft spirits segment is expected to grow at a CAGR of 20% over the next five years.

3.3 Health-Conscious Drinking

There is a noticeable rise in demand for low-calorie, gluten-free, and non-alcoholic beer and spirits. The “mindful drinking” trend has encouraged manufacturers to innovate with organic, low-alcohol, and botanical-infused liquors.

3.4 Digital & E-commerce Expansion

Regulatory relaxations in select states such as Maharashtra, West Bengal, and Karnataka have facilitated online liquor sales. The alco-bev e-commerce market is expected to grow at 15.6% CAGR, driven by platforms like Swiggy Instamart and Amazon India exploring alcohol delivery partnerships.

4. State-wise Contribution to Market Growth

  • Maharashtra, Karnataka, and Tamil Nadu contribute to over 45% of total alco-bev sales due to urbanization, favorable taxation, and a high number of licensed outlets.
  • Punjab, Haryana, and Rajasthan have the highest per capita alcohol consumption, influenced by cultural acceptance and consumer preferences.
  • West Bengal and Uttar Pradesh are seeing rapid growth in beer and whisky consumption, driven by youth demographics and policy shifts.
  • Goa and Himachal Pradesh serve as prominent alcohol tourism hubs, drawing consumers from across the country.

5. Export Market Trends

India’s alco-bev exports have witnessed a 21% growth in 2023, with whisky leading the segment. Key export destinations include the United States, the UK, UAE, and Singapore.

  • In 2024, India’s total alco-bev exports stood at $4.5 billion.
  • Import of foreign liquors reached $1.12 billion in 2023, marking a 78% year-on-year increase.

6. Key Players in the Industry

6.1 Indian Players

  • United Spirits Limited (Diageo India) – Market leader with brands like McDowell’s No.1, Royal Challenge, and Signature Whisky.
  • Radico Khaitan – Known for premium offerings like Rampur Single Malt and Magic Moments Vodka.
  • Pernod Ricard India – Strong presence in premium whisky and vodka segments with Chivas Regal, Absolut, and Jameson.

6.2 International Players

  • Diageo – Global leader with a strong foothold in India.
  • Pernod Ricard – Dominates India’s premium spirit market.
  • Beam Suntory – Expanding aggressively with brands like Jim Beam and Teacher’s Whisky.

7. Future Outlook & Investment Opportunities

  • By 2030, the Indian alco-bev market is projected to reach USD 140 billion, growing at a CAGR of 7.4%.
  • The beer market is expected to grow at 8.2% CAGR, while the IMFL segment will expand at 7.9% CAGR.
  • Premiumization, e-commerce expansion, and innovative product offerings will drive future investments.
  • State-level taxation policies and complex regulatory frameworks remain a challenge, but ongoing reforms may create a more conducive business environment.

7. Conclusion

According to Hardman Market Insights, India’s alco-bev market is poised for substantial growth, fueled by increased investments, job creation, and market expansion. The industry will continue to evolve, offering lucrative opportunities for domestic and international players looking to tap into one of the world’s most dynamic alcohol markets.