As growth slows in India's broader liquor market, major companies are betting that affluent consumers will continue trading up to premium whiskies, tequila and imported wines. According to reports from Mint, companies including Diageo India, Allied Blenders & Distillers (ABD), Radico Khaitan, Tilaknagar Industries, Alcobrew Distilleries, and independent Scotch bottlers have launched or outlined plans for premium single malts, tequila, Scotch whiskies and imported wines priced from ₹3,500 to ₹27,500 per bottle. This strategy reflects a broader industry shift where companies are chasing higher-value sales rather than higher volumes.
The premiumization trend shows strong performance metrics across different segments. As reported by Mint, while overall spirits volumes grew at a compound annual growth rate (CAGR) of 3% between 2019 and 2025, premium spirits expanded significantly with premium spirits growing 22%, ultra-premium 23%, prestige 31%, and prestige plus 53%. Industry estimates suggest India consumes about 440 million cases of spirits annually, with premium-and-above brands now accounting for about 43% of the market by volume. The premium segment, comprising brands priced around ₹1,000-1,500, accounts for roughly 120 million cases annually, while prestige and luxury brands together have grown to about 10 million cases and continue expanding at double-digit pace.
Industry executives attribute the shift to changing consumer preferences rather than increased alcohol consumption. According to Mint reports, Amar Sinha, managing director at Allied Blenders & Distillers, noted that consumers are choosing to drink better even if they drink less. The company plans to introduce one whisky in the ₹5,000-10,000 price band as part of its strategy to improve realizations. Amitabh Pande, chief strategy officer at Diageo India, highlighted that luxury spirits posted a value CAGR of 16% between 2022 and 2025 and 29% over the past five years, with the segment remaining at least a decade away from saturation.
Several established liquor companies are demonstrating strong luxury portfolio performance. As reported by Mint, Radico Khaitan recorded sales worth ₹475 crore from its luxury portfolio in FY26, up from ₹340 crore in FY25, with its luxury segment led by Rampur Indian single malt, Jaisalmer Indian craft gin and Royal Ranthambore whisky. Tilaknagar Industries outlined plans to expand Seven Islands pure malt whisky to more than 10 states in FY27 alongside wider rollouts of brands including Monarch Legacy Edition Brandy and Samsara gin. The premium push is also extending beyond spirits, with Tandon Enterprises expanding its Italian wine portfolio with 12 premium and luxury labels priced between ₹3,500 and ₹10,000.
