India continues to lead the world in alcoholic beverage consumption growth, driven by a young population, rising disposable incomes, and evolving social norms. While global alcohol consumption has declined, India stands out as an exception, with overall beverage alcohol volume increasing by 6% and value by 9% in 2024. Within this expanding market, Indian whisky has experienced particularly strong growth, with sales volume jumping by 7%.
The Indian alcoholic drinks market surged to 6.7 billion litres in 2023, marking a 7.5% year-on-year growth. This growth is primarily attributed to a young population and a burgeoning middle class with significant disposable income. India had a median age of 29.1 years in 2023, with a substantial population of Millennials (331 million) and Generation Z (383 million). This demographic profile, coupled with a rapidly expanding middle class, has fuelled consumption in recent years.
Whisky Dominance and the Rise of Indian Brands
India is the world's largest whisky consumer, surpassing the combined consumption of the next ten largest whisky-consuming countries. While India has long been a major consumer of Scotch whisky, a shift is underway, with domestic Indian whisky brands gaining prominence. Indian whiskies now comprise eight of the top twenty best-selling whiskies globally. Brands such as McDowell's No. 1, Royal Stag, Officer's Choice, and Imperial Blue consistently outsell international brands.
The Indian whisky market reached a volume of 260.07 million cases in 2024 and is projected to grow at a CAGR of 7.6%, reaching 502.80 million cases by 2034. This growth is driven by increasing consumer purchasing power and a rising demand for high-quality, premium alcoholic beverages.
Changing Consumer Preferences
Several factors are contributing to the growth and evolution of the Indian alcohol market. Younger generations are increasingly viewing alcohol consumption as a form of entertainment and social interaction. Cultural attitudes towards alcohol consumption are also changing, with more women entering the workforce and gaining financial independence. This demographic shift is fueling the expansion of the Indian alcohol industry, with greater acceptance of alcohol as a social norm.
Consumers are also showing a growing preference for premium and craft spirits. The increasing trend of premiumization is providing brands with the opportunity to reach wealthier consumer groups and cater to their evolving preferences. Experiential drinking establishments are also gaining popularity, catering to a range of customer tastes.
Future Outlook
The Indian alcohol market is expected to continue its growth trajectory in the coming years. The demand for the global India alcohol industry market is expected to be valued at USD 200.0 Billion in 2025, and is forecasted to grow at a CAGR of 7.2% to reach an estimated value of USD 300.0 Billion by 2035. This growth will be driven by rising disposable incomes, shifting consumer preferences, and the increasing influence of social media and globalization.
