India Keeps The Bar High: Premium Liquor Sales Rise Amid Global Slowdown

India is witnessing a sharp rise in demand for premium liquor, even as global consumers shift towards lower-priced options

India is witnessing a sharp rise in demand for premium liquor, even as global consumers shift towards lower-priced options.

Premium and super-premium segments in India grew about 9% in volume and 12% in value in 2025, bucking the global slowdown, according to preliminary data from IWSR. Across 22 key markets tracked by the London-based firm -- representing nearly three-fourths of global consumption -- total beverage alcohol volumes declined 2% and value fell 4% last year, marking the first drop since 2020.

"The major multinational spirits players, whose prior strategies centred chiefly on continued premiumisation, are now shifting tack. Recent restructuring and leadership changes indicate a greater focus on volume, relevance and more balanced portfolios across price tiers," Marten Lodewijks, Managing Director at IWSR, told The Economic Times.

While weak consumer sentiment and slowing premium demand weighed on global markets, India posted a 4% rise in volume and a 5% increase in value, even amid rising prices and cautious spending.

Neeraj Kumar, Managing Director of Suntory Global Spirits India, said the premiumisation trend continues to drive growth in the country. "India has emerged as a key global market for premiumisation. Consumers are increasingly opting for premium whiskies and high-end white spirits, prioritising value over volume," he told The Economic Times.

India remains the world's largest spirits market by volume, with consumption exceeding 410 million cases. However, premium and luxury segments account for less than 5% of the market, largely due to high import duties. While a large portion of consumers still opt for low-cost, unbranded liquor, the country's expanding middle class -- estimated at around 150 million -- continues to drive demand for premium offerings.

Global players are increasingly betting on India. Pernod Ricard recently reported an 11% growth in India for the March quarter, its second-largest market globally. "The Indian market continues to benefit from strong consumer fundamentals and sustained premiumisation," CFO Helene de Tissot told The Economic Times.

With over 20 million people entering the legal drinking age each year, India remains a priority market for global liquor companies. For industry giants like Diageo and Pernod Ricard, India is already the largest market by volume, and both are increasingly shifting focus towards premium products to improve margins.

"A turbulent 2025 has prompted the global drinks industry to recalibrate. Tariff disruptions and cautious consumers have challenged premiumisation strategies, while emerging markets like India have stood out as bright spots," Lodewijks added to The Economic Times.