Overview: Liquor makers across India are capitalizing on a growing luxury spirits market as affluent consumers increasingly trade up to premium whiskies, tequila, and imported wines. Companies ranging from Diageo India to Radico Khaitan are betting that rising disposable incomes will sustain demand for prestige products even as overall consumption stabilizes.
The Full Story
The luxury spirits sector is emerging as a significant growth engine within the broader alcohol industry. While overall spirits volumes grew at a compound annual growth rate of 3% between 2019 and 2025, premium spirits expanded by 22%, ultra-premium by 23%, prestige by 31%, and prestige plus by 53%. Industry estimates suggest India consumes about 440 million cases of spirits annually, with premium-and-above brands now accounting for approximately 43% of the market by volume.
This strategy reflects a broader shift in the industry from volume growth to high-value sales. Luxury offerings are priced between ₹3,500 and ₹27,500 per bottle, with an affordable luxury segment emerging in the ₹5,000–10,000 price band. Executives note that consumers are choosing to drink better even if they drink less, driven by rising disposable incomes and higher at-home consumption.
Major players are adjusting portfolios accordingly. Diageo India is expanding brands such as Godawan and Don Julio while introducing limited editions and bespoke whisky programs. Allied Blenders & Distillers plans to launch a whisky in the affordable luxury segment to improve realizations. Radico Khaitan reported sales worth ₹475 crore for its luxury portfolio, led by Rampur Indian single malt and Royal Ranthambore whisky. Tilaknagar Industries outlined plans to expand Seven Islands pure malt whisky to more than 10 states alongside a wider rollout of brands including Monarch Legacy Edition Brandy.
What This Means
The premium push extends beyond spirits, with Tandon Enterprises expanding its Italian wine portfolio with 12 premium and luxury labels priced between ₹3,500 and ₹10,000 after seeing stronger demand from distributors. Industry executives expect the next phase of growth to come not just from new product launches, but also from limited editions, bespoke bottlings and curated experiences. The segment remains at least a decade away from saturation as consumers increasingly seek personalized products and limited editions.
Consumer Takeaway
This market shift offers drinkers access to quality, authenticity and craftsmanship over volume through specific price bands and exclusive releases.
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