Market Insights Consumer Alcoholic Drinks

Spirits - India

India

Revenue, at home (e.g., revenue generated in supermarkets and convenience stores) in the Spirits market amounts to US$28.9bn in 2024.
Revenue, out-of-home (e.g., revenue generated in restaurants and bars) amounts to US$855.5m in 2024.
Revenue, combined amounts to US$29.8bn in 2024.
The revenue, at home is expected to grow annually by 3.76% (CAGR 2024-2029).
In global comparison, most revenue, at home is generated in China (US$146,400m in 2024).
In relation to total population figures, the average revenue per capita, at home of US$20.06 are generated in 2024.
In the Spirits market, volume, at home is expected to amount to 6,065.0m L by 2024.
Volume, out-of-home is expected to amount to 105.6m L in 2024.
Volume, combined is expected to amount to 6,171.0m L in 2024.
The Spirits market is expected to show a volume growth, at home of -0.3% in 2025.
The average volume per person, at home in the Spirits market is expected to amount to 4.21L in 2024.

Key regions: United States, United Kingdom, Worldwide, United Kingdom, Australia

Definition:

The Spirits market includes alcoholic beverages that have been produced through the distillation of wine, fermented fruits, or grains. Due to the distillation process, the alcohol content of spirits is much higher than that of most wines and beers, typically ranging from 20% to 50% alcohol by volume (ABV).

Structure:

The Spirits market is divided into 8 markets:

The Whisky market encompasses spirits on a grain basis that have been aged in wooden casks for a duration of at least three years.
The Vodka market encompasses spirits based on grain and/or potatoes.
The Rum market encompasses spirits based on sugar cane.
The Gin market encompasses spirits based on juniper berries.
The Brandy market encompasses spirits based on fermented fruit juice.
The Tequila market encompasses spirits made primarily from the blue agave plant (Agave tequilana) in Mexico.
The Soju market encompasses the Korean distilled beverage, Soju, which is traditionally made from rice, barley, or sweet potatoes.
The Liqueurs & Other Spirits market encompasses all other spirits not previously mentioned as well as Ready-to-Drink (RTD) cocktails.

Additional information:

The market comprises revenue and average revenue per capita, volume and average volume per capita, price per liter, as well as sales channels. Per capita figures refer to a country’s or region’s whole population.

At-home market data covers retail sales via super- and hypermarkets, eCommerce, convenience stores, and similar sales channels. Out-of-home market data includes all sales in hotels and restaurants, sales by catering companies, as well as sales in cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. All prices are valued at retail selling prices, including all sales and consumption taxes.

Key players include Diageo (e.g., Johnnie Walker, Smirnoff, and Tanqueray), Pernod Ricard, and Kweichow Moutai.

Market

Region

Region comparison

Currency

Analyst Opinion

The Spirits market in India has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: In India, there has been a shift in customer preferences towards premium and high-quality spirits. With the growing middle class and increasing disposable income, consumers are willing to spend more on luxury and indulgence. This has led to a rise in demand for premium spirits such as single malt whiskies, aged rums, and craft gins. Customers are also becoming more adventurous in their choices, seeking out unique and exotic spirits from around the world.

Trends in the market: One of the key trends in the Indian spirits market is the increasing popularity of whisky. Whisky has traditionally been the most consumed spirit in India, and this trend continues to grow. However, there has been a shift from mass-produced, entry-level whiskies to premium and imported brands. Indian consumers are now more aware of different whisky styles and are willing to explore a wider range of options. Another trend in the market is the rise of craft spirits. Craft breweries have gained popularity in recent years, and now craft distilleries are following suit. This trend is driven by consumers' desire for unique and locally-produced products. Craft spirits offer a sense of authenticity and craftsmanship that resonates with consumers seeking a more personalized and artisanal drinking experience.

Local special circumstances: One of the local special circumstances that has contributed to the growth of the spirits market in India is the cultural significance of alcohol. Alcohol has long been a part of Indian culture and is often associated with celebrations and social gatherings. As the country continues to urbanize and modernize, the consumption of alcohol is becoming more socially acceptable and even fashionable. This cultural shift has created a favorable environment for the spirits market to thrive.

Underlying macroeconomic factors: Several macroeconomic factors have also played a role in the development of the spirits market in India. The country's strong economic growth and rising middle class have led to an increase in disposable income and consumer spending. This has allowed consumers to trade up to premium and imported spirits. Additionally, the government's efforts to liberalize the alcohol industry, such as reducing taxes and regulations, have encouraged investment and innovation in the market. In conclusion, the spirits market in India is experiencing growth due to changing customer preferences, including a shift towards premium and craft spirits. Local special circumstances, such as the cultural significance of alcohol, have also contributed to this growth. Furthermore, underlying macroeconomic factors, such as strong economic growth and government policies, have created a favorable environment for the market to thrive.

Methodology

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.