India’s alcoholic beverages industry has evolved into one of the most dynamic sectors in the country’s consumer market. Valued at over USD 60 billion, it continues to grow at an annual rate of 6 to 8 percent, driven by urbanisation, changing social norms, and rising disposable incomes. From whisky and beer to wine and craft spirits, the Indian alcohol sector is now defined by innovation, premiumisation, and global collaborations.

The rise of India’s liquor giants

Whisky dominates the Indian alcohol market, accounting for nearly 60 percent of total consumption, followed by beer at 25 percent and wine and ready-to-drink beverages at 15 percent. India is already the world’s largest whisky market by volume, consuming almost half of the global supply. Despite heavy excise regulation and varying state policies, the sector remains one of India’s most profitable and fast-growing consumer industries.

At the heart of this transformation are leading players like United Spirits, United Breweries, and Radico Khaitan, along with fast-rising challengers such as Allied Blenders and Tilaknagar Industries. These companies are steering the shift toward premium spirits, craft liquors, and sustainable practices while expanding their reach across domestic and international markets.

United Spirits – Diageo India’s premium powerhouse

United Spirits, owned by Diageo India, continues to dominate the premium whisky segment with iconic brands such as McDowell’s No.1, Royal Challenge, and Captain Morgan. The company’s focus on luxury labels like Godawan and McDowell’s Double Oak has positioned it as the face of India’s premiumisation story. Despite excise challenges in major states, United Spirits reported an 8.4 percent rise in net sales in FY26, maintaining strong margins with a 45.5 percent gross margin and 17.9 percent EBITDA margin.

United Breweries – The King of Indian beer

A subsidiary of the Heineken Group, United Breweries remains India’s leading beer manufacturer, with Kingfisher still the most popular beer brand across the country. In FY26, the company reported 16 percent revenue growth to ₹2,862 crore, led by an 11 percent increase in volumes. Premium brands such as Kingfisher Ultra, Heineken Silver, and Amstel Grande recorded a remarkable 46 percent growth, showcasing India’s growing taste for premium beer.

Radico Khaitan – The homegrown success story

Radico Khaitan has become one of the strongest homegrown competitors in India’s premium spirits market. The company reported a 37.5 percent jump in IMFL volumes and a 32.5 percent rise in sales in FY26, driven by its prestige portfolio including Jaisalmer Indian Craft Gin, Morpheus Whisky, and The Spirit of Kashmyr Vodka. With its focus on craftsmanship and luxury, Radico has successfully positioned itself in the global premium spirits market.

Allied Blenders and Distillers – From mass to premium

Allied Blenders and Distillers, the maker of Officer’s Choice Whisky, has transformed from a mass-market brand into a premium player with its Sterling Reserve and ICONiQ White Whisky range. Listed in 2024, the company recorded a net profit of ₹195 crore in FY25, supported by export expansion across 27 countries. ABD’s transition toward high-value segments marks a new era for Indian spirits.

Tilaknagar Industries – Brandy legacy meets whisky expansion

Tilaknagar Industries, best known for its brandy portfolio, is broadening its presence through the acquisition of Imperial Blue from Pernod Ricard. With a 30.6 percent increase in revenue and a 121 percent rise in profit, Tilaknagar’s strategic shift will enable it to compete directly with top whisky producers while leveraging its established southern market dominance.

The changing face of India’s alcohol market

The Indian alcohol landscape is no longer limited to local brands and regional loyalties. Companies like Piccadily Agro, Globus Spirits, and Sula Vineyards are redefining categories with craft whiskies, gins, and wines that appeal to modern consumers. With increasing investments in branding, innovation, and sustainability, India’s alcobev industry is now globally competitive and culturally confident.

A maturing industry with global ambitions

As global players invest and Indian brands go premium, the industry is moving from volume-driven growth to value-driven evolution. Rising disposable incomes, changing social attitudes, and a young urban consumer base ensure sustained demand. With greater focus on responsible consumption and product innovation, India’s alcohol sector is poised to dominate the next decade of the global beverages market.

 

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