Alcoholic Drinks Sales Rise in India Despite Global Downturn
India has emerged as a strong growth market for alcoholic beverages, even as global consumption has declined over the past four years. According to recent data, sales volumes in Indian travel retail grew by 13% in 2024, significantly ahead of the 6% increase recorded in the nation’s domestic market.
Per capita alcohol consumption in India climbed from 2.4 litres in 2005 to 5.7 litres in 2016 and is projected to reach 6.7 litres by 2030. Overall, the Indian alcoholic drinks industry is now valued at approximately US$60 billion.
Strong Market Performance Amid Global Uncertainty
Shares of major Indian producers such as United Spirits, Radico Khaitan and Globus Spirits have risen up to 14-fold in the past four years, despite global economic challenges. This reflects growing domestic demand, particularly for premium and mid-tier spirits.
“This summer, Radico Khaitan posted a 73% surge in quarterly profits,” reported analysts, highlighting the country's appetite for premium alcohol brands.
Financial reports indicate that Indian state governments collectively earned around ₹19,730 crore in revenue from alcohol sales, underscoring the sector’s fiscal significance.
Regional Consumption Trends
- Madhya Pradesh: Alcohol consumption rose from 245.3 million litres in 2021–22 to 456.4 million litres in 2024–25, marking an 86% growth.
- Rajasthan: Consumption increased from 235.9 million litres to 304.2 million litres, a 29% rise over the same period.
Demographic Drivers
Research by Future Market Insights attributes much of this growth to India’s youthful population, with nearly 60% of citizens under the age of 35—a group that is increasingly driving demand for alcoholic beverages.
Author’s summary: India’s alcohol industry continues to thrive, fueled by rising youth demand, premiumization trends, and soaring regional sales amid a global consumption slowdown.