The K-Shaped Trajectory of India’s Alcohol Market 🍷📉🍾
India’s alcohol market is splitting — premium spirits are soaring while mass beer sales shrink, revealing how pricing power shields profits.
Through the first half of this year, India’s liquor industry looked unstoppable — growing 7% year-on-year, outpacing global markets. But as the monsoon hit and state policies shifted, the market split sharply into two paths — a true K-shaped recovery.
At the top end, United Spirits and Radico Khaitan rode the premium wave. Radico’s capacity expansion in Rampur and Sitapur paid off — sales surged 33.8%, profits jumped 70%, and its luxury whisky Rampur now sells for ₹10,000+ a bottle. United Spirits saw an 11.5% rise in sales and 41% jump in profit, driven by premium brands like Johnnie Walker and Godawan.
Policy also played a part. Maharashtra’s excise duty hike hit cheaper liquor hardest — prices up 80% in some cases — while premium and locally made brands thrived. Andhra Pradesh’s policy reversal opened new doors for private liquor players, where Radico rapidly captured 30% market share.
The real story here? India’s drinkers are trading quantity for quality. Premiumisation is no longer a trend — it’s a survival strategy. Consumers want fewer but better drinks, and companies that serve that demand gain pricing power, stability, and brand prestige.
For investors, the beneficiaries of this shift are clear: