How Alcohol Consumption Habits Are Changing in India

18, Feb 2023

As the world's largest whiskey market and one of the fastest-growing alcoholic beverage markets overall, India presents a unique blend of traditional drinking customs and modern preferences. In this article, we explore the changing landscape of alcohol consumption in India and the key trends shaping its future.

1. Growing Acceptance and Changing Social Norms

Historically, alcohol consumption in India was often associated with social stigma, particularly for women. Drinking was largely confined to men and was typically restricted to private gatherings or specific social settings.

However, this narrative is changing. With increased urbanization, globalization, and exposure to Western lifestyles, alcohol consumption is becoming more socially acceptable across genders and age groups.

Women and Drinking: There is a noticeable rise in alcohol consumption among women, especially in urban areas. Women are now more likely to be seen enjoying a glass of wine, a cocktail, or even premium whiskey in social gatherings and public spaces.
Younger Demographics: Millennials and Gen Z are driving the demand for diverse alcoholic beverages, including craft beers, flavored spirits, and ready-to-drink cocktails.

Key Insight:
The normalization of alcohol consumption is closely linked to evolving social norms, increased disposable income, and changing perceptions of leisure and lifestyle.

2. Premiumization: A Thirst for Quality and Luxury

Indian consumers are shifting from quantity to quality. There is a growing demand for premium and luxury alcoholic beverages, driven by the rise of affluent middle-class consumers who are willing to pay more for superior quality and brand value.

Key Trends:

Single Malts and Premium Whiskey: India is one of the largest consumers of whiskey globally, but there is a growing preference for premium single malts and aged blends. Indian brands like Amrut, Paul John, and Rampur are gaining international acclaim.
Craft Spirits: Craft gin, vodka, and rum are gaining popularity, with homegrown brands experimenting with local botanicals and innovative flavors.
Fine Wine Culture: Urban consumers are developing a taste for fine wines, leading to increased demand for both imported and Indian wines from regions like Nashik and Karnataka.

Key Insight:
Consumers are now more informed and discerning, seeking authentic experiences and premium products that reflect their status and lifestyle.

3. Rise of Craft Beverages and Microbreweries

Craft beer is a growing trend in India, particularly among urban millennials. The demand for unique and locally brewed beers has led to the rise of microbreweries across metropolitan cities like Bangalore, Mumbai, Pune, and Delhi.

Key Trends:

Local Flavors: Microbreweries are experimenting with indigenous ingredients such as mango, kokum, and Indian spices to create unique brews that resonate with local palates.
Diverse Styles: Indian consumers are exploring a variety of beer styles, including IPAs, stouts, lagers, and wheat beers.
Taprooms and Brewpubs: Brewpubs have become popular social hubs, offering a vibrant atmosphere for tasting fresh, locally brewed beers.

Key Insight:
The craft beer movement reflects a shift towards experiential drinking, where consumers value authenticity, creativity, and local storytelling.

4. Health-Conscious Drinking: Low-Calorie and Low-ABV Options

As health and wellness trends gain momentum, Indian consumers are becoming more conscious of their alcohol intake. There is a rising demand for low-calorie, low-sugar, and low-alcohol beverages that offer a balanced lifestyle without compromising on taste.

Key Trends:

Low-ABV Spirits and Cocktails: Ready-to-drink (RTD) cocktails with lower alcohol content are gaining popularity among millennials seeking convenient and healthier alternatives.
Light Beers and Hard Seltzers: Light beers and hard seltzers are emerging as popular choices for health-conscious drinkers due to their lower calorie count and refreshing profiles.
Alcohol-Free Options: The demand for alcohol-free beers, wines, and spirits is growing, catering to teetotalers and those seeking mindful drinking experiences.

Key Insight:
The focus on health and wellness is driving innovation in the beverage industry, with brands launching healthier and functional drink options to cater to changing consumer preferences.

5. E-Commerce and Digital Influence

The digital revolution is reshaping how Indians purchase and consume alcoholic beverages. The rise of e-commerce platforms and alcohol delivery apps has made it more convenient to explore and purchase a wide range of drinks.

Key Trends:

Online Alcohol Retail: The legalization of online alcohol sales in several states has accelerated the growth of e-commerce platforms specializing in alcoholic beverages.
Virtual Tasting Sessions: Brands are engaging consumers through virtual tasting sessions, live masterclasses, and social media campaigns.
Influencer Marketing: Social media influencers and bloggers are playing a significant role in influencing purchasing decisions, particularly among younger consumers.

Key Insight:
Digitalization is democratizing access to premium and niche alcoholic products, offering personalized experiences and increasing brand engagement.

6. Regional and Traditional Spirits Making a Comeback

Amid the rise of modern beverages, there is also a resurgence of interest in traditional Indian spirits and regional liquors. Consumers are rediscovering age-old brews that reflect the cultural heritage of different states.

Popular Traditional Drinks:

Mahua (Madhya Pradesh and Chhattisgarh): A tribal spirit made from the flowers of the Mahua tree, known for its floral aroma.
Feni (Goa): A potent spirit made from cashew apples or coconut sap, known for its distinctive fruity flavor.
Toddy (Kerala and Tamil Nadu): A naturally fermented palm sap drink, enjoyed fresh and mildly intoxicating.

Key Insight:
The revival of traditional spirits reflects a growing interest in authenticity, local craftsmanship, and cultural storytelling. Brands are now reimagining these ancient brews with modern branding and premium packaging.

How Alcohol Consumption Habits Are Changing in India