What’s really happening with premium liquor in India?
So, I was scrolling through the latest news India when I stumbled upon a story that caught my eye premium liquor sales are actually going up here, even though worldwide the trend is moving the other way. It felt a bit like hearing that your favourite street food stall is doing better than the big‑chain restaurants down the street. I thought, let’s dig a little deeper and see what’s behind this surprising shift.
According to preliminary numbers from IWSR, which tracks alcohol consumption around the globe, the premium and super‑premium categories in India grew about 9% in volume and 12% in value during 2025. That’s a solid rise, especially when we compare it with the global picture. The firm says that across 22 key markets, total beverage‑alcohol volumes fell by 2% and value slipped by 4% last year the first dip since 2020. In most cases, those other markets are feeling the pinch of weak consumer sentiment, but India seems to be doing the opposite.
How global slowdown meets Indian optimism
When you look at the broad story, it’s clear that the world of spirits is wrestling with a lot of challenges. Tariff disruptions, cautious spenders, and a general tilt towards cheaper, mass‑market drinks have left many multinational brands scrambling. But India, with its massive population and constantly expanding middle class, is standing out as a bright spot.
For instance, Marten Lodewijks, Managing Director at IWSR, told The Economic Times that the big multinational spirits players, who used to focus almost entirely on premiumisation, are now re‑thinking their game plans. According to Marten Lodewijks, “Recent restructuring and leadership changes indicate a greater focus on volume, relevance and more balanced portfolios across price tiers.” This shift is pretty interesting because it shows that even the giants are seeing the need to adapt to local tastes and buying power.
And it’s not just about the numbers. The story behind the rise is also about people’s changing preferences. Many of us, especially in tier‑2 and tier‑3 cities, have started to see premium whisky or a smooth vodka as a small celebration after a long day. It’s less about flaunting wealth and more about treating ourselves, something that resonates with a lot of my friends who have started using the phrase “a little premium” when they talk about their weekend drinks.
Industry voices: What the leaders are saying
Neeraj Kumar, Managing Director of Suntory Global Spirits India, shared his take on the trend. According to Neeraj Kumar, “India has emerged as a key global market for premiumisation. Consumers are increasingly opting for premium whiskies and high‑end white spirits, prioritising value over volume.” This echoed what I’ve been hearing in local whisky clubs a growing appetite for a neat single malt rather than a cheap rum mixed with soda.
Another heavyweight, Helene de Tissot, CFO of Pernod Ricard, pointed out that the Indian market contributed an 11% growth for the company in the March quarter, making it the second‑largest market for the group worldwide. She mentioned, “The Indian market continues to benefit from strong consumer fundamentals and sustained premiumisation.” It’s fascinating to see how these global brands are counting on India’s buying power as a pillar of their growth strategies.
Numbers that matter: The scale of the market
India is already the world’s biggest spirits market by volume we’re talking over 410 million cases consumed each year. Yet, the premium and luxury segments still make up less than 5% of that total. That tiny slice is largely because high import duties keep many premium brands pricey, pushing a huge chunk of drinkers towards low‑cost, often unbranded, spirits.
But there’s a silver lining. The middle‑class population, which official estimates put at about 150 million, is expanding fast. As they move up the economic ladder, they start looking for better‑quality drinks to mark special occasions. That’s why you’ll see more people in malls and high‑street stores choosing a bottle of Glenfiddich over the usual local brand. I’ve even noticed my cousin, who recently got a promotion, buying a premium whisky to celebrate a scenario that used to be rare a few years back.
Moreover, roughly 20 million Indians cross the legal drinking age each year. That fresh wave of younger, aspirational consumers adds another layer of demand for premium choices, especially as they are more exposed to global trends through social media and streaming platforms.
Why the shift matters for global players
For giants like Diageo and Pernod Ricard, India isn’t just another market it’s the biggest by volume. Both are now putting more focus on premium products to lift margins. When a brand moves from selling a cheap gin to a high‑end, aged whisky, the profit per bottle goes up dramatically, which is something every CFO loves.
What’s even more interesting is that this trend is being treated as “breaking news” within the industry circles. Analysts are watching India very closely because the country’s performance could hint at how other emerging markets might react when premiumization strategies are tweaked. In many ways, India is becoming a test‑bed for new product launches, packaging innovations, and even advertising approaches that are more suited to an Indian sensibility.
And it’s not just the big names. Smaller craft spirit makers are also getting a slice of the pie. I’ve visited a few micro‑distilleries in Goa and Karnataka that are experimenting with locally sourced botanicals. They market themselves as “Indian‑crafted premium” and they’ve started getting a decent following among the urban crowd. This shows that the premium wave isn’t limited to imported brands it’s also encouraging home‑grown talent.
Consumer mindset: From volume to value
If you ask me, the real story is about how Indian consumers are redefining what “value” means. In almost every conversation I’ve had lately, people talk about getting “more bang for the buck” not in terms of quantity, but in terms of experience. A bottle of aged whiskey that lasts a few evenings feels more rewarding than a cheap wine that you finish in one sitting.
That mindset aligns perfectly with the numbers we see from IWSR a 4% rise in volume and a 5% increase in value for the Indian market, despite an overall rise in prices and a cautious spending environment. It’s a classic case of people opting for quality over quantity, a trend that is also evident in other lifestyle areas like food, travel, and even electronics.
One anecdote that illustrates this well: a friend from Pune recently decided to switch from his regular brand of rum to a single‑cask Scotch for his weekend gatherings. He told me the first sip felt “like a celebration in a glass”. This little shift, repeated across thousands of households, adds up to the bigger premiumisation story we are seeing.
What the future could hold
Looking ahead, the forecast is anything but dull. With the ongoing influx of new legal drinkers and a middle class that keeps growing, the demand curve for premium and super‑premium spirits is likely to stay upward‑sloping. However, there are a few factors to watch out for.
First, the government’s stance on import duties and excise taxes will continue to play a major role. If duties stay high, the price gap between local and imported premium spirits might keep some consumers on the fence. Second, the rise of e‑commerce platforms for liquor sales could change how people discover and purchase premium brands a shift that many retailers are already gearing up for.
Lastly, the cultural narratives around drinking are slowly evolving. As more people start viewing a premium drink as a part of a lifestyle rather than simply an indulgence, the market will likely see more innovative marketing and product positioning. This is where “trending news India” and “viral news” about new product launches can create a ripple effect, pulling even more consumers into the premium segment.
All in all, what happened next after the 2025 data release was that many companies accelerated their plans for new premium launches, and the buzz on social media turned into a genuine shift in buying behaviour. Many of us, myself included, now keep an eye on the shelves for that next exciting bottle because in most cases, the story of Indian premium liquor is still being written.
