Tag Archives: Consumer Trends

Jonas Gustav Ax on Patrón El Alto, Tequila’s Rise, and What India’s Drinking Now

A few years ago, if someone walked into a bar in Delhi and asked for tequila in a tumbler with ice, eyebrows would rise. Today, it fits right in. Spirits that once lived in the background of parties are now selected with care, discussed over meals, and sipped with intention. Tequila is part of this change, gaining recognition not through noise but through dimension.

Now arriving at Mumbai and Delhi airports during peak travel months is Patrón El Alto, the latest premium expression from Bacardi’s portfolio. With passport counters running overtime, new flight routes expanding, and flyers strolling through upscale duty-free stores before takeoff, this launch feels like smart timing.

Behind the scenes of this shift stands Jonas Gustav Ax, Head of Advocacy for Bacardi across India and nearby regions. With two decades of experience behind the bar and in the field—from London’s cocktail scene to Malaysia’s mixology circles—Jonas brings global perspective to local conversations. Based in Delhi with his wife and their rescue dog, he balances his time between bar takeovers, education programmes, and a growing curiosity about Indian ingredients.

In this interview with Ambrosia, Jonas shares why Patrón El Alto speaks to India’s new wave of drinkers, how it blends tradition with ambition, and what makes a tequila feel right at home in a whisky-loving country.

What makes the launch of Patrón El Alto in India timely from a strategic perspective?

India’s premium spirits market is expanding steadily, with consumers making more thoughtful decisions around what they drink. There is growing interest in products that reflect skill, origin, and quality. At the same time, cocktail culture is becoming more expressive, and bartenders are approaching spirits with new energy. This moment presents the right opportunity to introduce a tequila that captures both care in creation and potential for creativity. El Alto aligns with this shift and lands at a time when people are open to discovering something layered and thoughtfully prepared.

Tequila is moving into the premium category globally. What factors are supporting this change and how does El Alto connect with that direction?

Drinkers are becoming more curious about what goes into the bottle. There is growing awareness about where spirits come from, how they are produced, and what kind of character they develop over time. Tequila, which was once seen through a limited lens, is now being explored with the same attention once reserved for whiskies and brandies. For decades, Patrón has focussed on small-scale production and unprocessed ingredients. El Alto builds on that foundation by introducing a blend of aged styles that reflect precision and thought. It continues the journey while also expanding what tequila can offer.

El Alto is described as ultra-premium. How would you define its role in the Patrón collection, and how is it different from the others?

This expression sits at the highest point within the lineup. The core variants—Silver, Reposado, Añejo—highlight clarity and structure, while El Alto introduces additional depth through its blend of long-aged components. It draws from a range of barrels, each bringing something distinct to the final composition. What also shapes its identity is the use of both volcanic stone milling and more modern methods, resulting in a profile that is broad, polished, and complete. The attention to technique sets it apart in both texture and personality.

Tell us more about how El Alto is crafted. What role do blending and production methods play in defining its character?

The entire process begins with two contrasting extraction styles. The Tahona method, involving a circular stone, brings out grounded, mineral elements, while the roller mill introduces freshness and herbal tones. After that, the spirit is placed in a variety of barrels—eleven in total—each lending unique qualities. The final blend is assembled after several rounds of testing, where careful proportions are chosen. The result carries warmth, sweetness, subtle fruit, and a refined finish. It reflects care at every point, from start to final pour.

What inspired the choice to combine Extra Añejo and Reposado tequilas in this expression? Was this primarily creative or strategic?

It came from both intention and instinct. From a broader viewpoint, this combination creates something that appeals to seasoned agave fans as well as those more familiar with aged dark spirits. At the same time, it gave the master distiller room to create balance: one part richness, one part brightness. That duality makes it versatile. It performs well in spirit-forward drinks while remaining approachable in simpler formats. The blend brings together structure and softness in a way that adds reach across styles and settings.

What are some common myths about tequila that you’re hoping to change with El Alto and Patrón’s larger storytelling?

One of the most familiar beliefs is that tequila belongs only in party settings or is meant to be consumed quickly. Another assumption is that all tequilas deliver a similar experience, with little variation in quality. Through El Alto, the intention is to introduce a different perspective; one that highlights nuance, aging, and variety. This spirit carries the kind of structure and intensity often associated with dark aged liquors. Whether served neat, over clear ice, or in a well-built drink, it encourages a more considered way of enjoying agave.

Who is the ideal Patrón El Alto consumer in India? Are you targeting connoisseurs, new-age luxury seekers, or both?

Both profiles are part of the audience. El Alto speaks to individuals who already understand the value of process-driven spirits and are looking to explore further within the agave category. It also connects with a newer generation of luxury-minded drinkers who want experiences that feel international yet rooted in authenticity. These are curious people who look for meaning in what they select, and who value elegance and intention in their choices.

What’s the distribution strategy for El Alto in India? Will it be available only in select cities or at premium venues?

The emphasis is on placing El Alto in environments where attention to quality is a shared value. This includes bars and restaurants known for refined menus, thoughtful bartending, and strong engagement with premium spirits. Along with that, the spirit will be available in high-end retail outlets across key locations. This approach allows people to encounter the brand in different ways: through curated pours at hospitality spaces, or as part of their personal collection at home.

Can you share details around the pricing strategy for the Indian market and how it aligns with your global positioning?

This expression is crafted for those who appreciate refinement and are comfortable choosing quality through a well-made product. Its preparation involves selecting agave with care, aging across multiple cask types, and blending in small batches. That level of effort is reflected in the pricing. In Mumbai, El Alto is placed at ₹29,500, which corresponds with its position across other markets. The amount captures the time, materials, and craftsmanship that define its identity.

With India’s luxury spirits market evolving rapidly, what long-term opportunities do you see for premium tequila in the country?

India holds significant promise for growth in this category. As more people look for substance and origin in what they enjoy, tequila becomes a natural addition to their repertoire. Awareness around sipping tequilas is growing, and cocktail menus are evolving to include more agave-based options. The openness to newer formats, ingredients, and cultural references works in favour of this spirit. As people continue to explore spirits with character, tequila has the potential to become a regular part of premium choices in both casual and formal settings.

Are there plans to expand the broader Patrón portfolio in India following El Alto’s launch? What can we expect next?

The core Patrón range—including Silver, Reposado, and Añejo—is already present across India. With El Alto now available, the portfolio feels complete in terms of offering options for both cocktails and sipping. The next phase is not about more products, but about building understanding. That includes working with hospitality partners, creating engaging experiences, and giving drinkers more opportunities to explore how each variant expresses agave differently. Once familiarity grows further, additional introductions may follow, based on what consumers show interest in exploring next.

You’ve travelled extensively for the brand. How does the Indian palate compare when it comes to accepting complexity in spirits?

People in India have always had an appreciation for flavour that carries variation and richness. The way cuisine is prepared and enjoyed already reflects this instinct. When introduced to a spirit that reveals something new with every sip, the response is immediate. There’s curiosity and a willingness to ask questions, explore textures, and notice changes over time. This makes it an exciting space for introducing agave spirits with structure and identity.

How do food pairing and cocktail culture influence how you present tequila in emerging markets like India?

Food plays an important role in shaping how spirits are experienced here. The variety in ingredients, preparation styles, and flavours allows tequila to be presented in creative and surprising ways. Pairing El Alto with bold, well-seasoned dishes enhances both elements, creating an experience that feels complete. On the cocktail side, bartenders are constantly experimenting with new formats, regional ingredients, and storytelling techniques. Their work helps open new doors for tequila and brings it into conversations where it previously had limited presence.

Finally, what’s your favourite way to enjoy El Alto and how would you introduce it to someone trying tequila for the first time?

My favourite way to enjoy El Alto is on a big single block of ice, served super chilled. I also love it in a tall Ranch Water: El Alto in a highball glass full of ice, topped to the brim with soda water. For someone new to this style, that second option works well. It’s refreshing, inviting, and gives space to appreciate the liquid without overpowering the senses.

Simon de Beauregard on AI, Strategy and What’s Next for Pernod Ricard India

A closer look at operational clarity and structured change. Simon outlines the mechanisms that guide progress across evolving business environments.

Transformation at a global company can look like a long list of frameworks, KPIs, and change decks. For Simon de Beauregard, Chief Transformation Officer at Pernod Ricard India, it looks more like a mix of sharp thinking, local intuition, and the steady rollout of tools that actually work. With over 15 years of experience across strategy, marketing, and digital roles in Europe and the US, Simon now leads a future-focussed mandate in one of the most layered alcobev markets in the world.

His remit spans widely yet stays precise; weaving technology into human behaviour insights, building teams that respond fast, and making room for innovation in a sector that comes with many rules. In this interview with Ambrosia, Simon walks through his approach to AI integration, creative enablement, regional execution, and the expanding role of data-driven intelligence across Pernod Ricard India.

How do you balance innovation with compliance while implementing AI strategies in a regulated market like India?

Responsibility forms the foundation of our work at Pernod Ricard India, and technology helps advance that cover across all areas. Strong compliance protocols shape both digital and physical initiatives, aligning fully with the Digital Personal Data Protection Act (DPDPA). Our AI roadmap prioritises governance, transparency, and sustainable outcomes. The team was designed with diversity and openness in mind, and we continue to strengthen our internal frameworks to maintain consistency, clarity, and long-term trust.

What’s the toughest part of changing internal mindsets while introducing AI into existing systems?

Mindset transformation is often the first, and most persistent, challenge. Encouraging teams to explore what AI can do—be it content creation, prompt development, or image generation—takes regular engagement. This shift begins at the leadership level and extends across departments. Our culture has always supported experimentation, which allowed us to embed AI early through our Key Digital Programs. These programmes focussed on communicating AI’s role, running detailed workshops, and investing in upskilling. Over time, we built internal teams that now manage these systems fully, allowing for tighter integration and stronger capability across the business.

Where do you draw the line on ethical AI usage in alcohol marketing within India’s context?

Our strategy reflects the country’s regulatory framework and its cultural distinctions. Every step—across content, outreach, and digital planning—complies with the DPDPA. Through our Drink More Water initiative, under Pernod Ricard’s global Responsible Party programme, we encourage moderation and hydration among adults of legal drinking age. Digital channels help share this message widely and effectively. The communication remains straightforward: balance matters, and water plays an essential role. The campaign has reached audiences globally and continues to grow through precision-driven distribution.

Could you share an example where AI-led insight shaped a campaign or business strategy?

Digital acceleration supports our premiumisation strategy in India. Tools such as Maestria, Matrix, and D-Star connect intelligence with action. Maestria studies usage patterns drawn from over 18,000 interviews to match each product with relevant occasions. Matrix tracks return on marketing investment, while D-Star enhances retail decisions through outlet-level data.

Maestria helps identify where each SKU fits across premium settings, and D-Star supported adjustments in bottle sizing based on regional preferences. This change contributed to a 46% conversion rate; significantly higher than the standard 10–20%. These platforms also assist more than 1,500 AI-supported sales representatives with real-time insights and agile decision-making.

Campaigns have also gained scale through these tools. During the ICC World Cup, we launched the “One Billion Films for One Billion Fans” campaign under Royal Stag Packaged Drinking Water. GenAI created personalised films placing fans alongside cricketing legends. With over 500,000 downloads, the campaign earned a Cannes Lion shortlist and multiple honours.

In another example, Imperial Blue Packaged Water’s Superhit Nights, in collaboration with Hardy Sandhu, offered personalised voice messages before his performances. This blended live engagement with digital interaction and contributed to a 50% increase in metrics such as click-through and view-through rates.

What are some of the early lessons Pernod Ricard India learned while integrating AI across sales and distribution?

A single framework doesn’t apply across India’s varied markets. Each region operates through unique regulations and distribution structures, which shape how data flows and tools respond. We adopted an 80/20 approach, starting with regions that provided higher return through faster scalability.

This required flexibility, domain-specific insight, and consistent experimentation. Customising global platforms for India played a central role in building long-term utility and relevance.

Does AI align with brand storytelling in a category like alcobev, where creative identity is key?

AI plays a supporting role across content development, audience engagement, and performance measurement. Our transformation framework was built to enhance human creativity by introducing greater speed, relevance, and precision. Tools like GenAI, customisation engines, and live performance analytics enable us to deliver communication that reflects both personal preferences and brand character.

Matrix allows continuous feedback by tracking response patterns and refining outreach strategies accordingly. These technologies work alongside brand teams, helping content stay consistent while adapting in real time to audience behaviour.

How does AI support outreach in India’s tier-2 and tier-3 markets?

We use technology to tailor brand presence in these geographies through specific partnerships and data-led localisation. For example, our activation with Swiggy Dineout introduced Jameson Ginger Ale and Ballantine’s Soda across select regional markets. This expanded both consumption occasions and consumer engagement, leading to a 40% increase in click-through rates. Campaigns like these combine national strategy with local insight, supported by AI-powered targeting.

What steps ensure that AI-led tools developed globally don’t overlook local dynamics in India?

India’s complexity requires finely tuned solutions. We adapt and calibrate every platform to suit market conditions. Maestria draws from extensive Indian research—over 18,000 interviews—and layers this data with pricing, demand projections, and behavioural analytics. This ensures that over 40 brands correspond closely with Indian usage patterns.

Matrix has been tailored to strengthen below-the-line performance, assigning financial outcomes to each tactical investment. D-Star improves store-level decision-making using real-time SKU information. Our local-first activations, including the Hardy Sandhu personalised campaign and the World Cup initiative, have begun shaping practices across other markets as well. These tools now serve as reference points within the group.

Where else across the value chain is AI making a difference beyond sales and marketing?

Forecasting plays a central role in planning, especially in a country as dynamic as India. We rely on AI-based platforms to estimate category growth, consumer preference shifts, and product performance at the state level. Social listening tools such as Radarly help us track emerging conversations, giving early cues for portfolio adjustments.

In operations, we apply computer vision in over a dozen safety-related scenarios; from spotting employees missing safety gear to identifying movement risks in high-traffic zones. At the group level, we’re scaling technologies like predictive AI, PR GPT, and sustainability-linked models for agricultural and environmental optimisation.

Our internal AI platform, Horizon, connects talent with opportunity by linking individual capabilities with business needs. This supports a skill-based workforce model that encourages learning, mobility, and future-readiness. Across the organisation, AI contributes to better planning, engagement, and workplace development.

What area still moves slowly across the industry when it comes to AI adoption?

Wider integration remains key. Value grows when AI reaches across business functions; from demand planning and content to supply chain and hiring. This has guided our own roadmap, where capability has been built across touchpoints. Our approach—framed as “AI meets conviviality”—channels real-world experiences with intelligent technology. This combination drives relevance, consistency, and personal connection across all consumer interactions.

QUICK TAKES

A campaign where AI’s impact stood out most?
The Absolut Vodka X Copy Lab project. The collaboration challenged how training data defines appearance and beauty. Through re-engineered inputs, it produced a set of fashion visuals that reflected inclusion and diversity, showing how AI can support cultural progress when guided with intent.

A skill that will define future leadership?
Integrated sustainability thinking. This area influences everything—from innovation choices and brand storytelling to performance measurement—across digital and product functions.

A professional shift that required personal adjustment?
Working in India brought new perspectives shaped by regional work styles and cultural codes. Immersing in this environment has added valuable depth to my learning curve.

A book or idea that influenced your outlook on innovation?
Tata Stories by Harish Bhat. It outlines how visionary thinking redefined industries while supporting community development. It reinforces how innovation becomes more impactful when anchored in purpose.

A space that helps you recharge and gain perspective?
The ocean. It’s where I reset, reflect, and reconnect with what matters.

A sentence that captures your leadership approach?
Curiosity builds bridges to ideas, people, and possibilities.

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

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).    

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.

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.