Alcohol industry defying global slowdown

India's alcohol industry stands at an interesting turning point.

- Teji Mandi by motilal oswal

The sector is not only witnessing consistent growth but also undergoing deep structural changes. While the global alcohol market saw a decline in 2024, the Indian market recorded growth in both volume and value. India's alcohol industry's market size reached $60 billion in FY25, even as global sales continued to decline. Furthermore, per capita alcohol consumption in India has increased from 2.4 litres in 2005 to 5.7 litres in 2016, and is expected to reach 6.7 litres by 2030. The sector has also proven highly profitable for investors, in the past four years, shares of companies such as United Spirits, Radico Khaitan, and Globus Spirits have surged up to 14 times.

Additionally, the industry has become a major source of revenue for state governments. In 2024 alone, alcohol sales generated Rs 19,730 crore in revenue.

Growth Drivers