NEWS
INDIA DRIVES GLOBAL ALCOHOL CONSUMPTION GROWTH AS MATURED MARKETS DECLINED
By Staff Reporter
24-3-2026
Source: Unsplash
India’s total alcoholic beverage consumption rose 6.5 percent to reach 445 million 9-litre cases by volume in 2025, confirming the country as the global leader in beverage alcohol growth, outperforming all major markets as mature regions stagnate or contract.
According to data published by the International Wine & Spirits Record (IWSR), against a muted global backdrop, where overall alcohol volumes edged just 0.4 percent higher in 2025, India’s consistent double-digit comparative performance underscores a historic structural shift.
For the third consecutive reporting period, India ranked first among the world’s top 20 alcohol markets by volume growth, far outpacing emerging peers such as South Africa (+4 percent), Mexico (+2% percent), Thailand (+1 percent) and Colombia (+1 percent).
Meanwhile, large established markets including the United States, China and parts of Western Europe recorded volume declines, amplifying India’s disproportionate contribution to global industry momentum.
At the heart of India’s surge is its dominant spirits segment, which accounts for roughly 70 perceenet of total consumption. Indian whisky remained the cornerstone, growing 7 percent to exceed 132 million 9-litre cases and retaining its position as the country’s largest and most resilient alcohol category.
White spirits and imported labels also posted strong gains: vodka volumes rose 10 percent, gin grew 3 percent, Irish whiskey jumped 23 percent, and Scotch whisky advanced 11 percent—supported by gradual tariff liberalisation and rising consumer experimentation.
Premiumisation emerged as a defining trend in 2025, with India’s premium-and-above segments outpacing the broader market with 8 percent growth in both volume and value.
Driven by an expanding middle class, rising urban disposable incomes and elevated travel spending, high-end spirits and craft offerings gained rapid traction.
Travel retail reinforced this shift: India’s duty-free alcohol sales climbed 13 percent in 2025, with ready-to-drink products soaring 123 percent as Indian travellers embraced international premium brands.
Demographics and economic expansion continue to fuel India’s exceptional trajectory. With more than 60 percent of its population under age 35 and a median age below 30—far younger than the ageing markets in North America and East Asia.
IWSR projections show India, alongside China and the USA, will drive nearly USD30 billion in incremental industry value by 2028, with India alone contributing approximately USD7.6 billion—more than double the relative growth rate of mature Western markets.
Industry leaders note that while state-level regulatory variations and occasional tax adjustments present operational challenges, long-term fundamentals remain strongly positive.
Domestic distillers continue to upgrade quality and compete globally, while international brands are doubling down on localizsd innovation, marketing and distribution to capture India’s expanding consumer base.
(the writer can be contacted at: info@thewinechronicle.com)
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