NEWS
REPORT: DIAGEO STILL DOMINATES INDIAN MARKET WHILE LOCAL LABELS GAIN TRACTION
By Staff Reporter
21-9-2026
Source: Unsplash
India’s on-premise beverage market is witnessing a defining shift, with home-grown craft spirits rapidly gaining traction even as international liquor giants retain control of core bar categories, according to the fourth edition of the What India is Drinking 2026 report by 30 Best Bars India.
The latest industry analysis surveyed 155 bars across 18 major Indian cities, including Mumbai, Delhi, Bengaluru and Kolkata, marking a 24 percent year-on-year rise in bar participation.
Covering 21 product categories and 527 liquor brands — 166 of which are indigenous Indian spirit labels — the report collates insights from bar owners, head bartenders and beverage managers to map evolving urban drinking trends.
Global drinks giant Diageo continues to dominate India’s urban bar scene, holding leading positions across mainstream segments including Scotch whisky, gin, tequila and vodka.
However, the data underscores a steady ascent for domestic craft spirits, which are growing in popularity among professional bartenders and urban consumers nationwide.
“International brands still rule gin, Scotch, aperitifs and agave-based spirits, but Indian origin labels are consolidating their footprint at a remarkable pace,” said Radhakrishnan Nair, co-founder of 30 Best Bars India.
Consumer cocktail preferences have leaned sharply toward bold, intense flavour profiles. The spicy, herb-forward tequila-based Picante has emerged as India’s top-selling bar cocktail, surpassing iconic staples Negroni and Espresso Martini.
While Negroni remains the country’s most-ordered gin cocktail, Whisky Sour has overtaken Old Fashioned to claim the top spot among whisky-based serves.
In the whisky segment, Johnnie Walker retains its supremacy as India’s best-selling blended Scotch.
For domestic single malts, Indri, Godawan and Paul John lead the market, signalling rising appetite for locally produced premium whisky.
Indian craft gin brands including Hapusa and Greater Than now compete strongly with global heavyweights Tanqueray and Hendrick’s, reflecting mainstream premium acceptance of home grown spirits in high-end on-trade venues.
The report also highlights stark regional fragmentation in consumer behaviour. Cocktail culture and drinking patterns in Bengaluru stand apart from those in Jaipur, Kolkata and other urban hubs, underscoring uneven demand across India’s sprawling metropolitan market.
Released amid robust industry projections, the report comes as rating agency ICRA forecasts 10 to 12 percent annual revenue growth for India’s alcoholic beverage sector in the 2026 financial year, driven primarily by premiumisation.
In contrast, overall sales volume growth is set to remain muted at 1 to 2 percent.
Sweeping market changes are also on the horizon following the finalised EU-India Free Trade Agreement, which will phase out import tariffs on European wine and spirits.
The gradual tariff reduction is set to intensify competition for both foreign importers and domestic Indian liquor producers.
Industry analysts frame the report’s findings as a clear dual trend: global premium spirits maintain unrivalled market leadership, while indigenous craft distilleries are steadily carving out a substantial, sustainable share in India’s high end bar ecosystem.
(the writer can be contacted at: info@thewinechronicle.com)
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