India Alcohol Market, By Beverage Type (Beer, Spirits, Wine, and Others), By Price Point (Premium/Luxury, Mid-range, and Economy/Value), By Distribution Channel (Supermarkets and Hypermarkets, Specialty Liquor Stores, Online Platforms, and Bar and Restaurants)

Published In : Feb 2025

Code : CMI3145

Pages :120

Formats :

Excel and PDF

Industry : Food and Beverages

India Alcohol Market Size and Trends

The India alcohol market is estimated to be valued at USD 60.11 Bn in 2025 and is expected to reach USD 101.10 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 7.7% from 2025 to 2032.

India Alcohol Market Key Factors

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The India alcohol market has been witnessing significant growth over the past few years. Factors such as rising disposable incomes, changing lifestyle, and social drinking habits have been driving the market growth. While the consumption of beer and spirits has increased substantially, India made foreign liquor (IMFL) continues to dominate the market. However, there is a rising popularity of the craft beer and premium whisky segments. The growing acceptance of women drinking alcohol particularly in urban areas is another factor that will support the market expansion in the coming years. Overall, increasing spending power and shifting trends towards western drinking culture make the India alcohol market an attractive space for investments.

Rise in income levels and increase in discretionary spending

With India's economy growing at a rapid pace over the past decade, personal incomes have risen substantially. According to recent estimates, the average annual household income in India increased from around US$1,100 in 2010 to nearly US$1,800 in 2020. This rise has been fueled by robust job creation in sunrise industries and service sectors. As incomes increased, so has the amount of discretionary spending power with individuals. Alcohol happens to be one of those luxury/leisure goods whose demand increases along with the rise in discretionary incomes. Young urban Indias today have more exposure to global lifestyle and are willing to spend on premium alcoholic drinks when dining out or socializing with friends. They see alcohol consumption as a sign of social status. Alcohol manufacturers have cleverly targeted this segment through innovative products, premium branding, and attractive packaging. Aggressive marketing campaigns on digital platforms have also increased visibility. Overall, the growing middle-class population with higher spending power has enhanced the addressable market for premium alcohol brands. However, much of the increased income is still being spent in the lower-priced alcohol segment as well which also aids the overall category growth.