Whalesbook
The idea that younger generations are giving up alcohol is being challenged in India's fast-growing alco-bev sector. Instead of stepping away, consumers are embracing a philosophy of 'drinking better,' a trend chief marketing officers from major players like Pernod Ricard India and Diageo India are watching closely and benefiting from.
Evolving Consumer Habits
Younger Indian consumers, contrary to global trends of moderating intake, are showing a clear preference for higher-quality spirits and more experimental drink choices. This shift isn't about drinking less, but about upgrading preferences, matching evolving cultural aspirations and social behaviors. Companies view this as a long-term growth driver, not a threat.
Market Growth Dynamics
India's alcohol market is growing faster than 20 other major global markets. Volumes rose 7% year-on-year to exceed 440 million 9-litre cases in the first half of 2025. Spirits lead this expansion, with Indian whisky and vodka categories showing strong gains. Crucially, premium and above segments grew 8% in volume and value, faster than the overall market, reinforcing the trend towards premiumisation.
Premiumisation and Experimentation
The shift is evident in changing drink choices. Classic whisky-sodas are slowly being replaced by cocktails with new, experimental flavors. This signals a move toward exploration and enhanced experiences, making drinking more intentional and social. Ready-to-drink formats also surged 11%, highlighting consumer demand for convenience and novelty.
Redefining Success
This evolution is also reflected in how younger generations define success. Brands are connecting with this by celebrating individuality and distinction, rather than traditional symbols of wealth or status. Campaigns featuring emerging talent and focusing on storytelling over product claims are resonating deeply, building connections through narrative.
Industry Outlook
Executives expect the market to continue maturing, driven by millions entering the legal drinking age each year and relatively low average consumption per person compared to global averages. This dynamic environment offers significant opportunities for brands that can connect with cultural trends and consumer aspirations, adapting their strategies beyond just price or product.