India is witnessing a strong increase in demand for premium liquor, while consumers across the world are turning to cheaper liquor. According to preliminary data from IWSR, the premium and super-premium liquor segment is expected to grow by about 9 percent by volume and 12 percent by value in 2025, which is in sharp contrast to the decline seen worldwide. The London-based industry tracker surveyed 22 major markets, which account for about three-quarters of the world's wine consumption. Last year, the total volume of liquor sales in these markets fell by 2 percent and the value decreased by 4 percent. This is the first decline since 2020.
IWSR Managing Director Maarten Lodewijks said that large multinational brewing companies, whose previous strategies were mainly focused on creating consistent premiums, are now changing their strategies. The recent reformation and change in leadership shows that they are now more focused on volume, relevance and a balanced portfolio across price categories and not just on increasing profits. While the liquor business across the world was hit by declining consumer confidence and declining demand for premium liquor, India recorded a 4 per cent growth in volume and 5 per cent growth in value despite rising prices and more cautious consumers.
Neeraj Kumar, Managing Director, Suntory Global Spirits India, said that the trend of making premium is continuously pushing the liquor category forward in the country. He said that India has proved its relevance as a 'bright spot' in premium making and its important role across the world. We are clearly seeing this shift—discerning consumers are increasingly choosing prestige whiskeys and premium ‘white spirits’, driving value rather than volume.
India is the world's largest alcohol consuming country by volume, consuming more than 410 million cases. However, due to high tax on imported liquor, its share in luxury and expensive liquor is less than 5 percent. While nearly half of the consumers in the country can only afford cheap and unbranded liquor, the rapidly growing middle class—which can afford premium and above category liquor—is estimated to be around 150 million.
Last week, Pernod Ricard reported that its business in India grew by 11 percent in the March quarter. India is the second largest market in the world for Pernod Ricard. The company's Chief Financial Officer Helen de Tissot told investors that fundamental factors related to consumers in the Indian market remain strong. Apart from this, our sales are also benefiting from strong demand for liquor and the ongoing premium trend.
More than 2 crore people are expected to come of legal drinking age in India every year, which is why most global companies consider this country as one of their top three priority markets. India is the largest market in terms of volume for Diageo and Pernod Ricard, the two largest spirits companies in the world. Instead of chasing higher volumes, they are trying to focus on premium products as part of their strategy to earn higher margins. Lodewijks said that the tumultuous year of 2025 has forced the drinks industry to change its strategy. “Tariff disruption and cautious customers have put premium product strategies under pressure, while emerging markets have emerged as a ray of hope.
