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Alcohol Industry sees double-digit boom and expects 20% growth in December quarter

Food and Beverages

Business Honor - Alcohol Industry Growth Surges 20%

Business Honor
27 October, 2025

India's Alcohol Industry Turns Its Attention to Premium and Sustained Growth as Festive Season Sales Peak.

The alcohol industry has never been better, having achieved almost double-digit growth in festive season sales, and now forecasted to have a rise of approximately 20% over the October-December period, driven by the premium spirits category. Its products, from Rampur Indian Single Malt to Jaisalmer Indian Craft Gin, have enjoyed good growth in a number of promising markets. The Alcohol Beverage makers think this growth momentum will continue through Christmas and New Year celebrations coinciding with rising consumer expenditure, growing disposable income levels and a young, aspirational consumer base. Diageo, a major retail distributer, is focusing on premiumization of throw craft spirits, company acquisitions, transportation and logistics and sustainability initiatives.

The Confederation of Indian Alcoholic Beverage Companies (CIABC) Director General Anant S. Iyer stated, "The alcohol industry is anticipating a 10-20 percent increase in sales this festive season.” Likewise, the International Spirits and Wines Association of India (ISWAI), which serves as representative of the imported premium portfolio of spirits and wine brands in India, has mentioned that the festive season is vibrant for the spirits sector due to consumer buying, aided by savings from GST attributed to the government. From 2019 to 2024, the overall industry grew at a CAGR of 3.4 percent, while the premium segment has achieved double-digit growth and the market share of the premium segment has also increased above 50 per cent from 42 per cent.

The transition from mass to premium and luxury propositions is a key component of market expansion. The share of premium spirits has continued to grow at a meaningful rate, demonstrating a willingness from consumers to pay more for high-quality and unique products. Companies are reacting to the trend by introducing super-premium brand extensions, such as Radico Khaitan's Morpheus and TRIKAL whiskies and, more recently, Piccadilly's own Indri single malt.