Mumbai: India is witnessing a spirited rise in demand for premium liquor, even as consumers globally are trading down.
Premium and super-premium liquor segments expanded about 9% by volume and 12% in value in 2025, defying a global pullback, according to preliminary data from IWSR. Across 22 major markets covered by the London-headquartered industry tracker, accounting for about three-quarters of global consumption, total beverage alcohol sales volume fell 2% and value decreased 4% last year, the first decline since 2020.
"The major multinational spirits players, whose prior strategies centred chiefly on continued premiumisation, are now shifting tack. Recent restructuring and leadership changes indicate a greater focus on volume, relevance and more evenly weighted portfolios across price tiers, rather than margin expansion," said Marten Lodewijks, managing director, IWSR.
Also Read: How global liquor brands are choosing desi partners to tap India’s premium boom
While the global alcohol business was hit by weak consumer confidence and slowing premium demand, India recorded a 4% increase in volume and a 5% rise in value despite prices going up and consumers turning more cautious.
Neeraj Kumar, managing director, Suntory Global Spirits India, said the premiumisation trend is actively powering the spirits category momentum in the country. "India underscored its relevance and critical global role as a bright spot for premiumisation. We see this shift clearly-discerning consumers are increasingly choosing prestige whiskies and premium white spirits, driving value over volume," he said.
Also Read: 'War-led cost surge, price curbs push beer industry into major trouble'
India is the largest spirits-drinking nation in terms of volume, at more than 410 million cases, but its share of luxury and high-end liquor is less than 5% due to higher duty on imported liquor. While about half of the alcohol consumers in the country can afford only cheap unbranded liquor, the rapidly growing middle class, which can afford premium-and-above labels, is estimated at about 150 million.
Last week, Pernod Ricard said it grew 11% in the March quarter in India, its second-biggest market globally. "The Indian market continues to enjoy dynamic consumer fundamentals, and sales benefit from strong underlying demand and continuing premiumisation," chief financial officer Helene de Tissot told investors.
With more than 20 million people expected to enter the age bracket for legal alcohol consumption in India every year, most global firms count the country among their top three priority markets. For Diageo and Pernod Ricard, two of the world's biggest spirits firms, India is their largest market in terms of volume and they have been trying to switch focus to premium products as part of their strategy to earn higher margins instead of chasing volume.
"A turbulent 2025 has caused the drinks industry to recalibrate," said Lodewijks. "Tariff disruption and a cautious consumer put premiumisation strategies under pressure, while emerging markets offered a rare bright spot."
Premium and super-premium liquor segments expanded about 9% by volume and 12% in value in 2025, defying a global pullback, according to preliminary data from IWSR. Across 22 major markets covered by the London-headquartered industry tracker, accounting for about three-quarters of global consumption, total beverage alcohol sales volume fell 2% and value decreased 4% last year, the first decline since 2020.
"The major multinational spirits players, whose prior strategies centred chiefly on continued premiumisation, are now shifting tack. Recent restructuring and leadership changes indicate a greater focus on volume, relevance and more evenly weighted portfolios across price tiers, rather than margin expansion," said Marten Lodewijks, managing director, IWSR.
Also Read: How global liquor brands are choosing desi partners to tap India’s premium boom
While the global alcohol business was hit by weak consumer confidence and slowing premium demand, India recorded a 4% increase in volume and a 5% rise in value despite prices going up and consumers turning more cautious.
Neeraj Kumar, managing director, Suntory Global Spirits India, said the premiumisation trend is actively powering the spirits category momentum in the country. "India underscored its relevance and critical global role as a bright spot for premiumisation. We see this shift clearly-discerning consumers are increasingly choosing prestige whiskies and premium white spirits, driving value over volume," he said.
Also Read: 'War-led cost surge, price curbs push beer industry into major trouble'
India is the largest spirits-drinking nation in terms of volume, at more than 410 million cases, but its share of luxury and high-end liquor is less than 5% due to higher duty on imported liquor. While about half of the alcohol consumers in the country can afford only cheap unbranded liquor, the rapidly growing middle class, which can afford premium-and-above labels, is estimated at about 150 million.
Last week, Pernod Ricard said it grew 11% in the March quarter in India, its second-biggest market globally. "The Indian market continues to enjoy dynamic consumer fundamentals, and sales benefit from strong underlying demand and continuing premiumisation," chief financial officer Helene de Tissot told investors.
With more than 20 million people expected to enter the age bracket for legal alcohol consumption in India every year, most global firms count the country among their top three priority markets. For Diageo and Pernod Ricard, two of the world's biggest spirits firms, India is their largest market in terms of volume and they have been trying to switch focus to premium products as part of their strategy to earn higher margins instead of chasing volume.
"A turbulent 2025 has caused the drinks industry to recalibrate," said Lodewijks. "Tariff disruption and a cautious consumer put premiumisation strategies under pressure, while emerging markets offered a rare bright spot."
