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India Wine Market growing despite challenging times

Given the global disruptions the Indian wine industry can look forward to good times.

Global wine consumption declined by 3.6% year-on-year to 214 million hectolitres (mhl), while production slumped by 4.8% to 226 mhl—its lowest level since the 1960s. This concurrent drop in demand and supply signals deep-rooted structural challenges, as consumer preferences shift and climate change continues to disrupt traditional wine-making regions.

Against this global backdrop, India has quietly emerged as a bright spot. The country now commands a 2.6% share of the world’s vineyard area, buoyed by a 4.1% CAGR in expansion—contrary to global trends. However, this optimism should be tempered with realism: wine still accounts for less than 1% of India’s alcohol consumption.

The India wine market size was valued at USD 229.0 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 892.0 Million by 2033, exhibiting a CAGR of 16.30% from 2025-2033. The rising disposable incomes, evolving consumer preferences, expanding wine tourism, increasing local production, supportive government policies, growing e-commerce accessibility, and the influence of the hospitality sector are factors responsible for the increasing number of India wine market shares.

Wine Growers Association of India (WineGAI) was started with a mission to grow India’s wine industry to ₹3,000 crore by 2030 by accelerating demand, improving quality, and shaping a supportive regulatory ecosystem. The vision was to establish India as a globally respected leader in wine production and a vibrant, wine-loving nation at home.

“WineGAI began in 2023 with just seven members and have since grown into an association representing 17 wineries across the country — and we’re actively working to bring more on board so as to be truly representative of the Indian wine industry.

“We’ve got a huge challenge ahead, given the slowdown in the wine category. I truly believe that we can overcome this by banding together and contributing to the larger cause. With your cooperation and involvement, we can,” says Ashwin Rodrigues, Secretary, WineGAI.

WineGAI consists of wineries with active brands as members. Key office bearers cannot serve two consecutive terms. There are mandatory monthly meetings of the Managing Committee. Member access to an exhaustive online database of over 200 documents containing statewise policies and correspondence. Full-time professionals are hired to manage the affairs of the association.

WineGAI successfully collaborated with The Lalit Group in celebrating the 8th annual Indian Wine Day. The event was a true celebration of Indian-ness, emphasising the rich flavours of Indian cuisine and wines. The Lalit Group has been instrumental in promoting Indian wine and making it a special day for wine enthusiasts.

WineGAI has also actively supported the event, further highlighting the growth and recognition of Indian wine.

The Ministry of Food Processing Industries (MOFPI) has recently established a Committee on Alcoholic Beverages to steer the sector’s growth and development. WineGAI actively participates in this committee, contributing its expertise to the industry’s advancement.

On March 29, 2025, WineGAI and HPMF signed an MoU to work together on promoting Indian wines in the hospitality space. The aim is to build awareness among hospitality professionals, encourage the use of Indian wines in the HoReCa sector, and drive demand through knowledge-sharing and smarter purchasing decisions.

The highlight of the year was the Bandra WineOut, a 1,800 strong consumer festival that reached out to a younger audience and made wine fun!

Their cooperation under the Joint Dialogue with Australia under the FTA got stronger. India gave them duty concessions in 2022, and the Australians have promised to help them in technical know-how and various other things.

Key Market Highlights: Strong market expansion driven by evolving consumer lifestyles & growing urban affluence; Increasing preference for premium, imported, and artisanal wine varieties and Rising focus on sustainable viticulture and eco-friendly packaging solutions.

The Indian wine market is experiencing a shift towards premiumisation as consumers increasingly seek high-quality, imported, and artisanal wines. With rising disposable incomes, evolving social drinking habits, and greater exposure to global wine culture, there is growing demand for fine wines from countries like France, Italy, Australia, and Spain. Additionally, domestic wineries are expanding their premium offerings to compete with global brands, focussing on quality production, innovative blends, and vineyard tourism.

By 2025, the demand for premium and imported wines is expected to surge further, driven by urban millennials and professionals who view wine as a sophisticated lifestyle choice. This trend is also fuelling investments in wine education, wine-tasting events, and the expansion of wine retail and e-commerce channels.

India’s domestic wine industry is growing steadily, with wineries in Maharashtra, Karnataka, and Himachal Pradesh focussing on high-quality local production. Improved viticulture practices, better grape varieties, and technological advancements in winemaking are enhancing the quality and competitiveness of Indian wines. Additionally, vineyard tourism is gaining popularity, with wineries offering immersive experiences such as wine tasting, vineyard stays, and food pairings to attract enthusiasts.

By 2025, the domestic wine sector is expected to witness increased investment in infrastructure, production capabilities, and promotional activities. The government’s supportive policies, including relaxed excise duties in some states and incentives for local wine producers, are also expected to boost the market, making Indian wines more prominent in both domestic and international markets.

Sustainability is becoming a key focus in India’s wine market, with producers adopting eco-friendly practices in both winemaking and packaging. Consumers are increasingly conscious of environmental impact, driving demand for wines packaged in biodegradable materials, lightweight glass bottles, and recyclable cartons. Wineries are also adopting sustainable viticulture methods, such as organic farming, water conservation, and solar-powered production facilities.

By 2025, the shift towards sustainability is expected to accelerate, with wine brands emphasising green certifications and eco-conscious branding to appeal to environmentally aware consumers. This trend aligns with global movements towards sustainable consumption, positioning Indian wineries to attract both domestic buyers and international export opportunities.

The Indian wine market is experiencing significant growth, driven by factors like a rising middle class, urbanisation, and changing consumer preferences. While still a relatively small industry compared to spirits, Indian wine production is increasing, and the market is expected to continue its expansion. Key trends include the adoption of wine as a preferred beverage, its use as a status symbol, and the increasing perception of it as a healthier alternative to stronger alcohol.

A significant portion of the market is supplied by domestic wineries, with imports accounting for a smaller share. Wine is increasingly becoming a preferred beverage, especially among younger demographics and urban consumers.

Wine has become a symbol of sophistication and an indicator of higher social standing among some Indian consumers. Wine is perceived by some as a healthier choice compared to stronger alcoholic beverages. Wine producers are exploring new grape varieties, fermentation methods, and blending techniques to cater to evolving consumer tastes.

Major Production Regions: Maharashtra, particularly the Nashik region, is the largest wine-producing area in India, with other regions like Bangalore and Himachal Pradesh also contributing.

Regulations and Taxation: Government regulations and taxation policies can impact production costs and pricing, which is a key factor in the Indian wine market.

Impact of COVID-19: The pandemic had a temporary impact on the wine industry due to lockdowns and economic contraction, but the market has since rebounded.

Indian wineries are focussing on building strong brands to enhance their competitiveness and reach a wider consumer base.

Taxes could affect Indian Alcobev Industry

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High taxation significantly burdens the Indian alcohol industry by increasing production costs, impacting profitability, and potentially driving consumers towards illicit alternatives. While GST doesn’t directly tax alcohol, increased taxes on input materials and logistics contribute to higher retail prices. This, coupled with state-specific excise duties and other levies, leads to a complex and fragmented market with varying prices and access points.

Indian alcohol market is estimated to be valued at 60.11 bn in 2025 and is expected to reach USD 101.10 bn in 2032, exhibiting compound annual growth (CAGR) 0f 7.7% from 2025 to 2032.

India’s alcoholic beverage industry faces regulatory hurdles like liquor bans and high taxation, impacting revenue and market share. Despite these challenges, the industry is projected to grow significantly, driven by premiumisation and evolving consumer preferences.

High taxation, particularly state-level excise duties and other levies, significantly burdens the Indian alcohol industry, impacting both producers and consumers. The industry contends with high tax burdens, with taxes often comprising 65-80% of the final retail price. This complex taxation structure, including state excise duties, VAT, and various fees, restricts financial flexibility and profitability.

In addition, the industry is hobbled by significant compliance overheads and a fragmented distribution ecosystem, where regulatory variations across states create logistical inefficiencies and increased costs. The working capital cycle is often elongated due to delayed payments from distributors and high inventory carrying costs, disproportionately affecting small and medium-sized enterprises (SMEs). For these players, who typically operate on EBITDA margins as low as 10–12%, any downward pressure on pricing can be economically unsustainable.

Indian spirits—particularly whisky, rum, and country liquor—have only a marginal share in global markets. According to data from the Agricultural and Processed Food Products Export Development Authority (APEDA), India exported alcoholic beverages worth USD 322 million in FY 2022–23, with Indian-made foreign liquor (IMFL) comprising a major portion. In comparison, the UK exported over £6.2 billion worth of whisky alone in 2022, highlighting the asymmetry in export capacities. The entry of global players with deep pockets, established branding, and premium positioning will make it impossible for Indian brands to compete against them and scale sustainably or capture premium market share. This reduced market share could ultimately lead to downsizing, plant closures, and stagnation in rural supply chains that depend on the sector for income. If local manufacturers lose market share, states could face a decline in excise revenue and employment generation.

Tax increases on alcoholic beverages can negatively impact the alcobev industry in several ways. They lead to higher prices for consumers, potentially reducing demand, and can also increase the costs for producers due to taxes on inputs. Furthermore, tax increases can lead to a decrease in sales volume, impacting the industry’s revenue and potentially leading to job losses.

Reduced Demand and Sales Volume: Higher taxes translate to increased prices for consumers, which can make alcoholic beverages less affordable, particularly for budget-conscious consumers.

This price sensitivity can lead to a decrease in the quantity of alcohol purchased, impacting sales volume for manufacturers and retailers. Some consumers might switch to cheaper brands or even substitute with other alcoholic products, impacting specific segments of the industry.

Increased Production Costs: Even if not directly taxed, the production process of alcoholic beverages involves various inputs like bottles, labels, and packaging materials, which are subject to taxes like GST. The cost of these inputs can rise due to higher taxes, increasing the overall production cost for manufacturers.

This cost pressure can be particularly challenging for smaller or craft producers who may have less financial flexibility to absorb these increases.

Impact on Revenue and Employment: Reduced sales volume and increased production costs can significantly impact the industry’s revenue and profitability. This can lead to potential job losses in the manufacturing, distribution, and retail sectors of the alcobev industry.

The industry might also face challenges in terms of cash flow and working capital, especially when dealing with tax refunds for input costs.

Potential for Unintended Consequences: Some studies suggest that higher taxes may lead to increased illicit production and sale of alcohol to avoid taxation, which can pose public health risks and further impact legitimate businesses. Consumers may also resort to cheaper alternatives or reduce consumption in other areas to afford alcohol, potentially impacting other industries.

While the industry may argue that tax increases do not reduce alcohol-related harm, some research suggests that price increases can lead to reduced consumption, especially among heavy drinkers and young people.

Industry Arguments: The alcoholic beverage industry often argues that tax increases unfairly burden the industry and consumers, and may not be effective in reducing alcohol-related harm. They may also highlight the potential negative impact on employment and tourism, particularly in areas where the industry is a significant contributor to the local economy.

The industry may also argue that other measures, such as public awareness campaigns and responsible drinking initiatives, can be more effective in addressing alcohol-related issues.

Policy Considerations: Policymakers need to consider the potential economic and social impacts of tax increases on the alcobev industry when formulating policies. Balancing the need to generate revenue and address alcohol-related harms with the potential negative consequences for the industry and consumers is crucial. Consultation with the industry, public health experts, and consumers can help to develop more effective and balanced policies.

Overall, while higher taxes on alcoholic beverages can be a tool to address public health concerns and generate revenue, they can also pose significant challenges for the alcobev industry and potentially lead to unintended consequences. A careful and balanced approach is necessary when considering tax policy changes in this sector.

UK Tax Burden Hurting Scotch Whisky

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75% of companies expect to defer investment, or invest outside of the UK due to the high tax burden
One in four Scotch distillers expect to make job cuts as a result of economic headwinds
76% say an increase in duty would make them less likely to take forward capital investment and recruitment

Three in four Scotch Whisky companies will defer UK investment, or invest elsewhere, due to the high tax burden, according to research undertaken by the Scotch Whisky Association (SWA). The SWA represents over 90 companies from across the Scotch Whisky industry, that collectively account for the majority of Scotch Whisky production (around 97% of the industry).

India is likely to be one of the destinations for investment as enunciated earlier by the SWA Chief Executive, Mark Kent who had stated after the India-UK free trade agreement was signed that “The deal is good for India too, boosting federal and state revenue by over £3bn annually, and giving discerning consumers in a highly educated whisky market far greater choice from SME Scotch Whisky producers who will now have the opportunity to enter the market.”

Kent had mentioned how “India is Scotch whisky’s largest export market by volume, with the equivalent of more than 192 million bottles exported there in 2024. The volume of Scotch whisky exports to India have grown by more than 200% in the past decade alone, and whisky is hugely popular in India. In fact, India is the largest whisky market in the world. But while many Indian consumers are keen to add a bottle of Scotch to their shelves, bars and collections, Scotch whisky has just a 3% share of the Indian whisky market. There is huge potential for that to grow with the free trade agreement announced in Spring 2025.”

Over two thirds of price goes in taxes

Going back to the research, undertaken between February and June 2025, reveals the extent of concern companies face about the current levels of alcohol duty in the UK – with over two thirds of the average-priced bottle of Scotch Whisky collected in tax.

Following a 10.1% rise in duty in March 2023, and a 3.65% rise announced in October’s Budget, 87% of respondents to SWA’s members’ survey expressed concern that the rate of excise duty will rise once again in this Autumn’s Budget.

Any further rise in duty will have an impact not only on investment, but also recruitment, according to the companies – at a time where the whole industry employs or supports 66,000 jobs across the whole UK. A quarter of companies now expect their overall headcount to decrease given the current levels of alcohol duty.

As well as direct job impacts, there is increasing risk of knock-on job losses across the extended supply chain as distillers reduce production in the face of global tariffs impacting exports.

This research comes as the industry faces significant strain. At the start of the year, over half of those surveyed expected operational costs from Government policies – for example, EPR fees, NIC increases, and tariffs – to increase by 10%; with 40% now expecting that figure to be over 20%. Despite the increased duty levels, HMRC data shows that Treasury spirits duty receipts have not increased and failed to deliver the forecasted revenue growth.

Kent added, “The Scotch whisky industry has a long track record of investment and growth that has benefitted communities across Scotland and the supply chain across the UK. It is also an optimistic and confident sector that believes in creating future growth.

“However, the positivity of the industry is being severely tested by the relentless impact of domestic policies and global circumstances.

“The industry is facing the significant challenge of US tariffs and increasing domestic pressures at a time it would otherwise be looking to support the Prime Minister’s growth mission. This high tax burden is not delivering the expected additional revenue for the Government, but it is costing jobs and investment.

“At a time when the country needs economic growth, we cannot fail to back one of the UK’s longstanding successes.”

Scotch Whisky Industry Records £5.4BN Global Exports in 2024

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High taxes on Scotch whisky, specifically a recent 10.1% duty increase and a subsequent 3.65% increase, are hurting the UK alcobev industry by increasing costs for consumers and businesses, potentially leading to reduced investment and job losses, and ultimately impacting the economy. The industry argues that these tax hikes are counterproductive, leading to decreased government revenue and stifling growth.

The Scotch Whisky Association (SWA) has released global export figures that show the value of Scotch exports stood at £5.4bn in 2024. The equivalent of 1.4bn 70cl bottles of Scotch whisky were exported last year, equating to 44 per second.

The figures, released, show a decrease of 3.7% on 2023 exports by value. The Scotch Whisky Association has called on the UK and Scottish Governments to provide more support for the industry as distillers warn that the combination of pressure on consumer spending, increased domestic tax and regulation, and turbulent global trade, may continue to impact exports into 2025.

Exports by volume have increased by 3.9%, which the industry says reflects the changing trends in global consumer preferences and challenging trading environment.

India has regained its position from France as the world’s number one Scotch whisky export market by volume, with 192m bottles exported, while the United States retains its long-held position as the largest export market by value, worth £971m in 2024.

However, the whisky industry has warned that global trading conditions remain turbulent at the beginning of 2025 and have called on the UK government to do what it can to mitigate growing domestic pressures on the industry. This includes reducing excise duty on the industry, with 70% of the average priced bottle now collected in tax, reconsider the financial impact of Extended Producer Responsibility (EPR), and accelerate trade talks to reduce tariffs and market access barriers in key markets, like India.

Commenting on the export figures, Mark Kent, Chief Executive of the Scotch Whisky Association said, “Despite the resilience of the Scotch Whisky industry, 2024 has been a challenging year.

“At home, distillers are being stretched to breaking point, as consumers bear the brunt of a 14% increase on the tax on every bottle of Scotch Whisky in the last 18 months alone. The cumulative effect of inflationary impacts on input costs such as cereals, energy and shipping, and the increased tax and regulatory costs, including the substantial cost of EPR coming later this year, are being fed through to consumers when they are tightening their belts.

“Overseas, the tectonic plates of trade are shifting, and exports to traditionally strong markets in the EU and North America have become much more challenging. We continue to support UK Government to promote strong and open trade relations with key export markets around the world, and particularly to advance negotiations on FTA with India, and engage with the US Administration. The United States remains a key market for Scotch, and where the industry contributes to the US economy through direct investment and jobs.

“But support for the industry’s global success starts at home. For too long, the industry has been taken for granted, with the misguided and simplistic belief that decisions taken in Scotland and the wider UK won’t impact an industry which exports 90% of its product, supports a large local supply chain and plays a valuable part in attracting tourists to Scotland. The Scotch whisky industry is a proven driver of economic growth, jobs and investment, and needs an environment free from the shackles of excessive taxation, regulation and uncertain operating costs. The UK government must redouble its efforts to back Scotch producers to the hilt, as promised by the Prime Minister.”

These are challenging times for the beverage alcohol industry. Changing weather patterns and wildfires are affecting production of essential ingredients like grapes, barley, and hops. Many consumers are switching to low- and no-alcohol beverages. And now, tariffs.

Research by the Scotch Whisky Association (SWA) indicates that a high tax burden is causing three out of four Scotch whisky companies to either defer or shift investment away from the UK. This reluctance to invest can impact expansions, infrastructure improvements, and innovation within the industry.

Furthermore, a quarter of distillers are considering reducing headcount due to economic pressures and the current alcohol duty levels.

The industry currently supports 66,000 jobs across the UK, and any further tax increases could lead to a decline in employment within the sector and its related supply chain. High domestic taxes can make Scotch whisky more expensive compared to other spirits, both domestically and internationally, potentially impacting its competitive edge.

Tariffs already add pressure, and high domestic taxes further exacerbate this. When a 25% US tariff was imposed on single malts in 2019 (later suspended), the industry lost over £600 million in exports to the US over 18 months. This highlights how external factors, combined with domestic tax burdens, can significantly hinder export performance.

Despite duty increases, HMRC data hasn’t always shown the expected rise in spirits duty receipts. This suggests that excessive taxation can potentially discourage consumption, leading to lower-than-anticipated tax revenues, a point raised by the SWA.

While recent changes to alcohol duty have included a draught relief to support the hospitality industry, the overall duty increases can still impact the price of drinks, including Scotch whisky, in bars and restaurants. This can affect consumer spending in the on-trade sector and subsequently impact the businesses that rely on alcohol sales.

Alcohol taxes are implemented to generate revenue and address public health concerns, excessive or poorly structured taxes can have detrimental consequences for the UK alcobev industry, particularly Scotch whisky, by impacting investment, jobs, exports, and competitiveness.

Labels That Lead: Inside India’s Evolving Beer Aesthetic

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Popular homegrown beer makers share how visual design choices affect what lands in the cart and why.

The Indian beer industry is moving through an exciting phase of transformation. With an estimated 720 million young consumers influencing buying patterns, and the market projected to grow from INR 444.6 billion in 2024 to INR 802.5 billion by 2033, beer brands are navigating a fiercely competitive space with creative agility. In a country where direct advertising is heavily regulated, packaging has emerged as the most influential communication tool for alcoholic beverages. Visual identity, storytelling, convenience, and shelf presence are now essential.

Packaging as Brand Language

Avneet Singh, Founder and CEO, Medusa Beverages

In the absence of traditional media outreach, the label does the talking. For Avneet Singh, Founder and CEO of Medusa Beverages, packaging is a strategic asset. “It’s the frontline of brand communication. We treat our can like a silent salesman. It signals our ethos, style, and appeal to a youthful, confident Indian identity.”

Arjit Ghosh, Vice President-Sales, Lone Wolf

At Lone Wolf, Vice President-Sales Arijit Ghosh speaks of a similar emphasis noting that packaging becomes a crucial touchpoint. It reflects their philosophy and values, and they aim to connect emotionally with the consumer through design.

Sachin Abrol, Co-founder and CEO of Prisco Potion Private Limited, adds that packaging is the most direct interface between the buyer and the brand. “We treat it as a canvas to build emotional connection and communicate the brand story.”

Intekhab Aslam, Head of Marketing, SOM Distilleries

Intekhab Aslam, Head of Marketing at SOM Distilleries, notes that the twist cap on Woodpecker Beer was developed to prioritise ease of use and comfort. Their design strategy emphasises intuitive experiences and functionality that serve immediate consumer needs.

Abhinav Jindal, Founder and CEO of BeeYoung

Packaging has become the handshake between brand and buyer. And as beer buying becomes more experiential, packaging performs both at point-of-sale and post-purchase.

Abhinav Jindal, Founder and CEO of BeeYoung, sees packaging as the product’s storyteller: “The can must evoke emotion and aspiration. It should reflect who we are brewing for.”

Shekhar Swarup, Joint Managing Director at Globus Spirits Limited

Shekhar Swarup, Joint Managing Director of Globus Spirits, which introduced Carib Premium Strong Beer to the Indian market, believes packaging is no longer just the outer shell; it’s the identity. With advertising restrictions in place, Swarup sees packaging as the lead storyteller, capturing the ethos of the Caribbean-inspired brand. For Carib, bright yellow tones, sunray motifs, and blue waves aren’t mere visuals; they convey vitality, cultural roots, and a shared love for cricket that connects India and the Caribbean. “It’s often the first and most lasting impression,” he notes.

The Design Process

Creating packaging that reflects brand character is a nuanced process. Design decisions reflect ongoing interpretations of consumer preferences and brand evolution.

Medusa draws inspiration from mythology and pop culture to mould its visual story. Singh shares that symbols like Medusa and bold metallics are intended to resonate with a new-age Indian mindset.

Ghosh highlights Lone Wolf’s minimal aesthetic. Their use of black for lighter beers and white for stronger ones helps create standout presence. “That’s a deliberate strategy. The hashtag #unfollow encapsulates our philosophy,” he says.

Prisco Potion’s approach is built on emotion, according to Abrol. From identifying the feeling to translating it through material, colour, and texture, their aim is to anchor authenticity.

Carib’s packaging reflects the vibrant personality of its origins. Swarup explains that the design team focused on infusing Caribbean identity into every element. The choice of colours, the batsman icon, and the “United by Cricket” tagline are a nod to shared sporting passions between regions. It’s a packaging narrative that seeks familiarity while bringing freshness to Indian consumers.

SOM’s yellow Glide and black Crest caps ensure ease of recognition. Aslam mentions that the bottle design supports everyday usability.

Jindal explains that BeeYoung Beyond’s matte finish and copper tones borrow from international design while incorporating ingredients such as Doon basmati rice to ground it locally. “The design must echo the beer’s character,” he says.

Seasonal Editions and Engagement

Seasonal releases and festive packaging have become effective tools to spark buzz and deepen brand engagement. Medusa’s House of the Dragon collaboration featured collector’s edition cans with dragon-scale motifs. “This became part of pop culture discourse,” notes Singh. The collaboration led to spikes in digital engagement and store-level demand.

At Prisco Potion, limited-edition packaging is part of the plan. According to Abrol, these drops boost visibility and consumer interaction, especially across visual-first platforms. “We design packaging people want to post about,” he says.

BeeYoung also uses its microbrewery Brewgarden to trial seasonal brews. “Each label or tap handle reflects the season. These become conversation pieces and content for organic reach,” explains Jindal.

SOM launches festive gift packs during key holidays. Aslam views these as purposeful extensions of their visual presentation.

At Lone Wolf, Ghosh shares that their engagement focus lies in crafting seasonal cocktail recipes rather than altering packaging.

Swarup mentions that Carib is currently focussed on strengthening its presence with its core product identity. While festive or limited-edition designs hold promise for the future, the brand aims to first cement recognition and familiarity with its core aesthetic.

Shelf Presence vs Store Rules

In a fragmented market, shelf presence presents ongoing hurdles. Indian alcohol retail follows state-specific policies that affect everything from SKU dimensions to display permissions. As the beer segment grows with frequent product introductions, those who align packaging with both regulation and retail shelf design stay more noticeable.

“Shelf real estate is often monopolised by larger players,” says Singh. “Our solution: bold fonts, high-gloss finishes, and compact layouts that work in dimly lit stores.”

Swarup notes that packaging design isn’t revisited only during product launches. It remains a continual exercise. Collaboration with Carib International ensures that feedback loops, retail behaviour, and shifting trends are considered regularly, helping the brand stay relevant amid regional constraints.

Prisco Potion believes that standout packaging delivers instant impact and layered detail. It should catch the eye quickly but also reveal thoughtful design choices upon closer inspection.

BeeYoung considers distance viewing. “Our design stands out from five feet away in a crowded store. That requires both form and function,” states Jindal.

Lone Wolf reflects on differing conditions across regions. “In cities like Goa, design contributes more due to visibility. In others like Delhi and Chandigarh, the effect is different,” says Ghosh.

Instagram-Ready, Shelf-Ready

With discovery now influenced heavily by digital content, brands are aligning packaging for both physical and virtual impact. Singh explains that Medusa’s mock-ups are reviewed in influencer grids and visual simulations before hitting shelves. “If it doesn’t capture interest visually, it doesn’t move forward.”

While Jindal focusses on tactile detail, ensuring BeeYoung’s cans have distinctive textures and rich colours, Abrol at Prisco Potion considers shareability key. “Packaging that photographs well ends up being reposted and remembered.”

Carib’s packaging has been tailored to appeal across both in-person and social formats. According to Swarup, the objective was to create an experience that resonates with younger, urban consumers who often make snap decisions. The brand’s visual personality supports both tactile recall and online curiosity.

Ghosh values consistency. Lone Wolf’s labels are curated to stay recognisable on shelf and screen alike, while Aslam views packaging as a premium artefact; pleasing in person and polished for digital appeal.

This dual-readiness enhances brand exposure, as packaging increasingly enters the frame of everyday consumer storytelling.

Innovation and Future Directions

India’s beer packaging sector aligns with broader international trends. According to IMARC Group, the global beer packaging market stood at USD 25.9 billion in 2024 and may reach USD 33.9 billion by 2033. Rising craft beer demand, aesthetic focus, and sustainability preferences are redefining packaging goals.

Medusa is introducing AR-enabled packaging and collaborating with artists. “We’re curating design stories connected to regional culture and independent creators,” says Singh. Their internal R&D team is also exploring new finishes that react to temperature changes,creating a dynamic visual experience. This could lead to limited runs tailored for summer or festive seasons.

Prisco Potion is working on immersive packaging solutions. “We’re integrating augmented reality and eco-responsible materials to match evolving expectations,” informs Abrol. The team is experimenting with smart codes embedded into cans, allowing consumers to access exclusive content and loyalty programmes with a scan.

BeeYoung is building on sustainability and regional sourcing wherein they are highlighting ingredient origins through local artist collaborations and biodegradable formats. The brand is also studying reusable packaging models, particularly for urban taproom distributions.

SOM is simplifying visual design while embracing environmental goals. Their new labels reduce ink use and they are exploring partnerships that support visual storytelling. “Discussions are underway with packaging innovators to create water-repellent labels that maintain clarity in chilled environments,” shares Aslam.

Lone Wolf maintains its clarity-first philosophy. “Our designs take time and careful thought. We modify only when it adds real value,” notes Ghosh. They are currently conducting market tests with alternate materials that offer higher shelf life while preserving design sharpness.

Swarup shares that innovation in packaging remains a critical area of exploration for Carib. While the brand has taken a steady approach in its India rollout, the future may see the introduction of smart features and sustainability-led formats as they adapt to local market cues and global directions.

With the Indian beer market expanding at an annual growth rate of 6.72%, packaging innovation is becoming a key tool for market relevance and recall. From fostering shelf standout to shaping digital conversations, it’s become central to beer’s story in India, crafted as thoughtfully as the brew inside.

July 2025 Issue is out!

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It features interesting articles like:

· Iswai, Scotch Whisky Association and industry call FTA ‘a game-changer’

· Taxes could affect Indian alcobev industry

· Tilaknagar Industries to acquire Imperial Blue from Pernod Ricard India

· Abhishek Modi works off his own manual. And that’s exactly why Rockford works.

Will the FTA Reshape India’s Alcobev Future

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History was made this July as India and the United Kingdom finally signed their long-negotiated Free Trade Agreement, marking a seismic shift in global alcobev dynamics. For the first time, Scotch whisky, British gin, Bottled-in-Origin (BIO) and bulk imports which are used for making Bottled in India (BIO) products as well as blending with IMFL will enjoy sharply reduced tariffs when entering India – dropping immediately from 150% to 75%, with a gradual reduction to 40% over the next decade. ISWAI calls this more than just a trade pact – for them and international makers – it’s a signal that India’s alcohol market is being redefined.

Now, India is already the world’s largest whisky consumer and the premium segment is growing rapidly. With rising disposable incomes, greater urbanisation and a young, curious consumer base, the country’s alcobev market is poised for robust growth all the way to 2035. This FTA could be the accelerator that not only opens the doors for premium global spirits but also nudges Indian producers to innovate and compete on even greater quality and branding.

While the effects of the FTA may be most visible in the shelves of India’s premium retail outlets and luxury hotel bars, its real impact is expected to be long-term. For consumers, the availability of aged Scotch whiskies at marginally lower price points will elevate the drinking experience. For Indian spirits companies, the competition will push them to rethink strategy, invest in premiumisation and perhaps even explore global exports with more urgency.

And this couldn’t have come at a better time for the global beverage alcohol industry. 2024 was a tepid year for Total Beverage Alcohol (TBA) volumes across traditional markets, many of which were weighed down by inflation and geopolitical uncertainty. For global alcobev giants, developing markets like India now represent the future – dynamic, untapped and increasingly premium.

Meanwhile, the Scotch whisky industry continues to raise its own bar. In 2024, global exports touched a record £5.4 billion. With India’s tariff barriers easing, the country could soon become one of the top value markets for Scotch, not just by volume but in prestige and premiumisation too.

The bottom line: This FTA is not just about bottles crossing borders – it’s may be about cultures converging, markets maturing and possibly a shared opportunity to shape the next era of premium spirits.

Vinexpo Asia calls for Rules-based Trading, Amid Tariff Issues

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Held in Singapore, Vinexpo Asia 2025 brought together 1,100 exhibitors and over 11,000 visitors, reaffirming the resilience of the global wine and spirits industry amidst rising trade tensions and tariff uncertainties. The event underscored the importance of staying connected and adapting to an evolving geo-economic climate.

Singapore’s Minister of State for Foreign Affairs and Trade & Industry, Gan Siow Huang, highlighted the existential threat of trade barriers for small producers and the need for a predictable, rules-based trade system. She emphasized Singapore’s commitment to international collaboration, with 28 Free Trade Agreements, including the newly effective Pacific Alliance-Singapore FTA.

The Asia Pacific wine and spirits market is expected to grow annually at 6.85% till 2030, driven by a youthful middle class and interest in innovative offerings such as low- or no-alcohol options. Singapore, with its strategic location and robust logistics, has emerged as a key import-export hub—importing $2.1B and exporting $2.5B worth of wines and spirits.

Vinexpo’s CEO, Rodolphe Lameyse, addressed the triple challenges facing the industry: shifting consumption habits, climate change, and geopolitical shocks. He reiterated that face-to-face engagements like Vinexpo are crucial for building partnerships and strategizing the future.

The event saw strong participation from global wine producers and featured over 4,000 business meetings, with buyers from more than 60 countries—especially from Southeast Asia—cementing the region’s growing significance in the alcobev trade.

Haryana Taxes Beer Heavily

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The Haryana State Government has increased taxes on beer and from June 12 the prices of beer in the state will go up by 55% for Indian brands and 45% for imported.

Beer brands such as Kingfisher, Carlsberg, Budweiser, and Hoegaarden will see sharp upward price revisions. A 650ml bottle of Kingfisher Ultra, currently retailing at ₹90, will now cost ₹140. Beers such as Corona and Amstel will cost ₹290 up from ₹200 for a pint. Tiger beer is expected to follow suit. A 330 ml beer bottle of Budweiser and Carlsberg will cost ₹120 that used to cost ₹75. Canned beer has been increased to ₹130 (45% for 500 ml can) from ₹90.

The cost of Indian Made Foreign Liquor (IMFL) and Imported Foreign Liquor (IFL) is set to rise by 15-20% under the new excise policy which the government announced on June 2. Absolute Vodka is likely to go up from ₹1,200 to ₹1,500, and Glenlivet from ₹3,200 to ₹3,800.

Haryana Targets ₹14,064 Crore Revenue

Jitender Dudi, deputy excise and taxation commissioner, Gurugram (West), confirmed the increase to a national newspaper. “Yes, there will be a 55% hike on Indian beers and 45% on imported ones. This is primarily to bring parity with neighbouring states and to promote Indian-made beer and liquor over imported alternatives. The excise department is also focussing on optimising revenue through fair pricing while reducing the consumption of foreign-labelled liquor.”

The Haryana government has set a revenue target of ₹14,064 crore for FY 2025–27 under its new excise policy. In the last 2024–25, the department surpassed expectations, collecting ₹12,700 crore against a target of ₹12,650 crore. Officials credited the achievement to improved enforcement, policy stability, and a rise in legal consumption. The 2025–27 excise policy aims to build on this momentum with reforms in liquor quota, duty structure, and stricter compliance enforcement. “With the increased license fee, it will be easier to achieve the targets,” said Dudi.

June 2025 Issue is out!

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It features interesting articles like:
• Vinexpo Asia calls for rules-based trading, amid tariff issues
• Jonas Gustav Ax on Patrón El Alto and Bacardi’s big tequila bet in India
• Labels that lead: Inside India’s evolving beer aesthetic
• How Simon de Beauregard is rewiring Pernod Ricard India’s digital game

Raising a Toast to Transitions

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The Indian alcobev landscape is never still. Much like the beverages it
celebrates, the industry is constantly fermenting new ideas, distilling fresh
opportunities and occasionally – as we’ve seen this month – grappling with
heady challenges.

As we raise a toast to our June 2025 issue, the spotlight turns to three compelling themes:
the potential of wine exports, the shifting aesthetic of Indian beer culture, and the impact of
the Maharashtra government’s latest hike on liquor taxes. Each story is a reflection of the
larger dynamics at play in the country’s rapidly evolving drinking culture and marketplace.
Not all developments this month have been celebratory. The Maharashtra government’s
recent hike in liquor taxes — one of the steepest in the past three years — has stirred concern
across the value chain. Distributors, retailers, and premium brand owners are scrambling to
recalibrate pricing without losing consumers to parallel markets or lower-cost alternatives. In
our in-depth report on this issue, we explore the ramifications for both local businesses and
global players invested in India’s most lucrative alcobev state.

Equally vibrant is India’s beer revolution. Gone are the days when choice was limited
to a handful of lagers. Today, the urban consumer is spoilt for choice — from juicy IPAs to
Belgian-style saisons, and even experimental local brews with Himalayan herbs or jackfruit.
In “India’s Evolving Beer Aesthetic”, we unpack how new-age consumers – particularly
millennials and Gen Z – are embracing beer and also how new age brands are using aesthetics
to appeal to the consumer. Breweries are now story-driven, design-forward, and increasingly
sustainable. Beer in India has matured – not in age, but in attitude.

Now let’s talk about wine. For international producers eyeing India, the market has moved
beyond the metros. As our lead feature “How to Successfully Export Wine and Increase Sales
in India” outlines, success lies not just in logistics or pricing, but in understanding India’s
diverse palates, regional food pairings and growing interest in wine education. Wine tourism,
influencer-led tastings and digital-first sales strategies are beginning to bridge the gap between
producer and consumer. India isn’t merely an emerging wine market — it’s an expressive one,
and brands that acknowledge this nuance will find a loyal, curious audience.

Amid these dynamic shifts, this issue also brings you a curated selection of insightful
reads. For those curious about the business side of things, we feature candid conversations
with industry insiders navigating regulation, trends and consumer engagement.
June may be the start of monsoon season, but in the alcobev industry, it’s anything but
a slowdown. The skies may cloud, but the vision for India’s alcobev future remains sharp,
vibrant and full of flavour.

The Regular, The Semi-Premium, The Premium and Super Premium target audience

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India’s alcoholic beverage sector is the world’s third largest. Despite a lack of uniformity in state excise rates, state-specific regulations, and limited opportunities for the marketing of alcoholic beverages, the sector continues to record significant growth.

The alcoholic beverage industry is one largest processed beverage industries in the world. Globally, the alcohol market is valued at 2.4 trillion dollars. In India, the alcohol industry was valued to be at 55.84 billion dollars in 2024. The Indian alcoholic industry is one of the fastest growing and most diverse alcoholic beverages market globally. The sector has a high-growth potential given favourable demographics and increasing social acceptance.

Alcoholic Beverages industry (Alcobev) is a portmanteau for a large variety of alcoholic drinks. These drinks are categorised into Beer, Wine and Other Spirits. They are generated from variety of sources such as corn, wheat, grapes, molasses, and other agricultural products. The Alcobev Industry directly supports the agriculture and food processing industry in India. In India, alcohol consumption stood at 4.9 litres per capita with male alcohol consumption at 8.1 litres per capita. 18.8% of men and 1.3% of women in India consume alcohol.

India has one of the youngest populations globally. The total population of India is estimated at 1.43 billion for 2025. The median age in India is estimated to be 28.2 years in 2023 and is expected to remain under 30 years until 2030.

Regular

The population pyramid of India is bottom heavy with growing working age population and low dependence ratio. This trend is expected to lead to rising income levels per household as well as higher levels of discretionary expenditure.

The Indian middle class constitutes 31% of the population and is expected to be 38% by 2031 and 60% in 2047. Households with annual earnings between USD 5,000-10,000 grew at a pace of 10% between 2012 and 2020. These households are leading to an increase in discretionary spending on food and beverages, including alcoholic beverages, apparel and accessories, luxury products, consumer durables, and across other discretionary categories.

Women Participation: Increasing education, workforce participation, and urbanisation is leading to a change in the socio-economic status of women in society.

This increase of women in the workforce has resulted in a shift of patterns in terms of household activity, an increase in incidence of eating out coupled with entertainment which may lead to higher acceptability of women consuming alcohol.

Semi Premium

Young consumers are better educated, more tech savvy, well informed, and willing to try new products. Alcobev manufacturers are focussing on craft premium spirits at higher price points to capitalise on margins, while premium brands also tend to command greater loyalty among consumers.

The proportion of people who drink alcohol varies considerably low in a global context. This raises the expectation of significant growth potential in per capita consumption, especially as the acceptance of alcohol is spreading. A major consumer base that has emerged over the past five years is the rising acceptance of drinking amongst women.

The Indian alcobev industry is segmented majorly into Indian Made Foreign Liquor (IMFL) and Indian Made Indian Liquor (IMIL). Based on the type of products, Alcobev is classified as Beer, Whiskey, Wine, Rum, Brandy, Vodka, and other alcohols. The two segments of IMFL and country liquor cater to different sections of society. Country Liquor caters to the low-income groups in rural areas while IMFL caters to the middle-and high-income groups in both urban and rural areas.

Beer, a popular alcoholic beverage made from water, malted barley, yeast, and hops. It contributes approximately 8% to the recorded consumption of pure alcohol in India. The beer market in India is evolving from manufacturing usual beer products such as strong-lager beers to flavoured beers owing to the adoption of foreign trends and technologies. Today, more than 140+ beer brands exist in the Indian beer market, which could address the palate of each customer segment. The per capita beer consumption in India is still very low compared to other countries in the Asia Pacific region, and therefore the market could witness rapid growth in the coming years.

Super Premium

Ranked on its own as a country, India would have a population of 140 million spread across 30 million households, and would be the 10th-largest country in the world. Its per capita income would stand at $15,000 (about ₹12.80 lakh).

This would place it at 63rd position on the list of countries by per capita income. For perspective, Oman, which is at 54 on the real list, has a per capita income of $20,000.

Premium

The Indus Valley Annual Report 2025, published by venture capital firm Blume Ventures, divides India into three categories: India 1, representing the wealthiest 10% of the population; India 2, representing the middle 23%; and 3, 67% the rest of India.

The “aspirant class”, consisting of about 23% of the population, would be made up of 70 million households and 300 million people, and would have a per capita income of $3,000 (about ₹2.55 lakh).

Country

India 3 would consist of 1 billion people across 205 million households, the entire “bottom” 67% of the economy. Per capita income here stands at $1,000 (about ₹85,000).

How badly do averages skew perception? In 2023, India’s average per capita income was placed at $2,500, or about ₹2.12 lakh.

Super Premium

Who are the wealthiest?

3.7% of the world’s HNI individuals are Indian citizens, according to the Knight Frank Wealth Report 2025, released in March. They define HNI as a net worth of $10 million or more. 85,698 Indians met this mark, according to the Knight Frank report.

India is third on the list of countries with the wealthiest billionaires. Indian billionaires collectively hold an estimated $950 billion in wealth, coming in immediately after the US ($5.7 trillion) and Mainland China ($1.34 trillion).

191 is the number of billionaires in India, as of 2025, according to the Knight Frank report. 26 of these billionaires joined the ranks over the financial year 2023-24 alone. A big jump from seven new billionaires in 2019.

Indian Alcoholic Industry Overview

The Indian alcoholic industry has a high growth potential due to favourable demographics and increasing social acceptance. The alcobev industry in India grew remarkably in recent years because of factors such as rapid urbanisation, evolving consumer priorities, a burgeoning middle-class population, greater purchasing power, and growing liking for premium alcoholic beverages.

Alcohol consumption has surged across geographies, as a growing number of consumers, both men and women, enter the target consumer class. The legal drinking age in India varies from 18 – 25 years, depending on the state, highlighting the enabling environment for the alcohol market’s robust growth.

The consumer landscape in India has traditionally been a pyramid, with many households from low incomes forming the base, and a small number of households with large incomes at top. Similarly, alcohol consumption forms a similar structure with lower brand consumption dominating the larger base while premium brand consumption dominating the upper base. With growth being fuelled by economic development and demographic dividend, the rising “middle class” is divided into groups each with distinct consumption drives and needs.

In India, the alcohol consumption is expected to increase. Alcohol consumption stood at 4.9 litres per capita, with male alcoholic consumption at 8.1 litres per capita and female alcohol consumption at a mere 1.6 litres per capita. Alcohol consumption is expected to increase to 5 litres per capita in 2025 and to 6 litres per capita by 2036.

India’s alcohol market is experiencing rapid growth, with a compound annual growth rate (CAGR) of 3.3% from 2022 to 2027, making it the fifth-largest market globally, according to IWSR.

The role of the alcoholic beverage industry in India’s economic landscape is expected to grow. Recognising its potential and addressing the existing hurdles will help spur economic growth. The Indian alcohol beverage market is the third largest in the world and is poised to become a key player in the global spirits industry, with products made in India rapidly gaining prominence internationally. Valued at US$ 59.8 billion in FY24, the sector contributes significantly to India’s economy, accounting for nearly 3% of the nation’s GDP. As India becomes a manufacturing hub, the alcoholic beverage sector will play a key role in this growth. Both global and local players view India as a thriving domestic market and a potential exporter, particularly for home grown single malts. This growing segment aligns closely with the “Make in India” initiative, showcasing India’s potential in premium spirits production.

Whisky dominates the Indian spirits industry by a wide margin. By consumption patterns, Telangana, Maharashtra, West Bengal, Odisha, Karnataka, Uttar Pradesh, and Punjab, are among the largest consumers of alcobev in India. Liquor stores serve as the predominant sales channel nationwide, especially since alcobev consumption and sales primarily occurs outdoors.

The Indian alcohol industry is in a nascent stage compared to the global liquor industry. The growing economy supports the sector through an interplay of demographics, urbanisation, and policy reforms.

Young Population:

In 2024, revenue in the alcoholic beer market in India is projected to reach USD 9.8 billion, and exports experience a value of 34 million in 2023. The market is expected to experience an annual growth rate of 6.89% (CAGR 2024-28).

Whisky market

India is the largest whisky market in the world, with almost one out of every second bottle of whisky sold in India. The Indian whisky market was projected to reach USD 17.4 billion in 2024 and was expected to reach USD 22.4 billion by FY 2025 by leveraging demographic trends, new customers and premiumisation. Indian whisky market can be divided into four segments including popular (up to ₹450), prestige (₹450-1000), premium (₹1000-2000) and luxury segments (More than ₹2200). The value segment, consisting of popular and prestige segments, contributed close to 86% of the total volume for the Indian whisky market.

The contribution of the premium and luxury segment by value is projected to reach around 34% of the overall whisky market by FY 2028 from 33% in FY 2023. However, its contribution by volume would still be close to 16% in FY 2028. The Whiskey industry is expected to grow annually at 5.3% (CAGR 2024-2028). The Indian whisky sector generates the highest revenue among all alcoholic beverages in India.

Wine Market

The consumption of wine in India constitutes a small share but is one of the emerging alcoholic beverage categories. Growing awareness, underpinned by income growth, westernisation and a changing profile of consumers, is driving growth in the wine category.

Domestic wine manufacturers have invested in both the upstream and downstream operations of value chain. To leverage the growing acceptance of wines in the premium and luxury segments in metro cities in India. Metro cities including Mumbai, Bangalore, Delhi-NCR, Hyderabad, and Pune are the major consumption centres for wines in India. The Indian wine market is a concentrated market with domestic players controlling the market and steadily increasing their prominence in the market.

The wine segment was valued at ₹2,660 crore, with the domestic wine industry constituting 73% of the market size in 2023. It is expected to grow to ₹6,425 crores in 2028, with the domestic wine industry constituting 77%. The wine market sold 3 million cases in 2023 and is expected to sell 3.9 million cases in 2025 (Provisional). It is expected to experience an annual growth rate of 14.57% (CAGR 2024-2028).

Rum market

Rum is made by fermenting and then distilling sugarcane molasses or sugarcane juice. It is available in dark rum and light rum. Dark rum is the more popular category with a share of ~98% followed by light rum. Dark rum differs from traditional rum due to the addition of caramel or by the maturation in oak containers. Canteen stores department or army canteens are the primary drivers of rum sales in India. Rum is also the preferred alcobev drink in the northern and eastern states of India.

The Rum segment was valued at ₹21,074 crores in 2023 and is expected to increase to ₹30,240 crores by 2028 (provisional). The sale of Rum, which stood at 51 million cases in 2023, is expected to increase to 68 million cases in 2028 (provisional). The sector is expected to grow at 5.65% (CAGR 2024-2028).

Brandy market

Brandy is a beverage made by distillation of wine. It may be aged or matured to possess aroma and taste of brandy. Indian blended brandy is a mixture of minimum 2% of pure grape brandy with any other fruit or flower brandy as recommended by the Indian Law. Indian brandies are permitted to use extra neutral alcohol (ENA) from other agricultural origin sources.

Indian Brandy market can be divided into four segments, including popular (up to ₹450), prestige (₹450-800), premium (₹800-1500) and luxury segments (More than ₹1500). Brandy consumption is price sensitive as most brandy brands are in the popular and prestige segment. There is a high degree of variation in the price structure of brandy in different states, with each having an independent cost structure with unique excise duties and other applicable taxes, which leads to varying prices from state to state.

In 2024, the revenue from the brandy market in India was estimated to reach USD 3.7 billion. The Brandy segment is projected to grow annually at 4.33% (CAGR 2024-2028).

Vodka market

Vodka is a clear distilled alcoholic beverage. It is made from a fermentable base which can be grains, potatoes, or other starchy or high-sugar plant matter. The vodka industry in India constitutes a small part of the overall alcoholic beverage industry, but is experiencing one of the highest growth rates among all the alcoholic industry. Magic Moment, a core Vodka brand in India recorded sales of 6.3 million cases during the year and crossed sales value of 1,000 crore.

The revenue of the vodka segment amounted to USD 37.8 million in 2024. It is projected to grow annually at 2.13% (CAGR 2024-2028).

This is attested by the growth in sales, profit, along with projected capacity addition by alcobev companies. The alcoholic drinks sector will witness strong growth prospects in the alcoholic drinks sector over the years, driven by an improving macroeconomic growth, positive demographics, shifting cultural values, expanding young, middle class, rising sophisticated retail channel, a progressively more adventurous consumer base, and a burgeoning premiumisation trend.

The increasing focus on streamlining state excise policy, increasing support from the government, entry of international brands, effective promotion and branding by the companies, and improving the standards of alcoholic beverages available in India will provide further impetus to the growth of the alcobev industry in India. Concerted attempts to relax the cumbersome complex regulatory framework, simplify its operational complexities, enhance its Ease of Doing Business (EODB), and unlock its full growth potential will provide tailwinds to this industry. However, rising consumer inclination to consume non-alcoholic beverages may constrain market growth.