The alcoholic beverage industry in India is on track for solid growth, with an expected annual expansion of 8-10%, according to Karan Taurani, Executive Vice President of Elara Capital. Currently valued at around Rs 3.5 trillion ($47-48 billion), the market is expected to reach Rs 5 trillion shortly.

The industry’s volume stands at about 1,000-1,100 million cases, divided mainly among spirits (whiskey, brandy, rum), beer, and country liquor. Spirits hold the largest share, followed by beer and country liquor.

Taurani points out that 6-10% of this growth will come from higher sales volumes. Meanwhile, the majority will be driven by premiumisation — consumers choosing higher-value products. With over 40% of India’s population belonging to Gen Z, there is a notable shift towards quality over quantity in alcohol consumption. This shift is driving growth in the luxury and high-end segments.

Although the lower-end segment is shrinking in volume, rising demand for premium products is expected to offset this decline.

Per capita alcohol consumption has risen to about 3-3.5 litres in recent years. Whiskey dominates the category. Beer remains a relatively small part of the market, accounting for less than 10% of volume. In comparison, beer accounts for 40-70% in countries such as the US, China, and parts of Europe.

Overall, brown and white spirits continue to lead, with premiumisation as the key driver for future growth.

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