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As challenges persist in the global beverage alcohol market, the role of India as the planet’s most formidable growth engine has become even more vital – but what does it take to achieve success in this huge but enormously complex market?

Total beverage alcohol (TBA) volumes in India expanded at a CAGR of +3% between 2019 and 2024, capped by a +6% gain in 2024 and a projected +4% increase in 2025, according to IWSR data. Growth is expected to continue in the years ahead, with volumes predicted to rise at a CAGR of +3% between 2024 and 2034.

This growth spans all categories, with spirits, wine and beer all expected to record CAGR expansion of +3% to +4% over the next decade. Gains for RTDs are projected to be stronger still, with CAGR increases of +6% to 2034.

In volume terms beer is the largest category, but looking from a perspective of serves, whisky accounts for more than half of servings.

Domestic products dominate the spirits and beer categories, but imports are gaining ground. Imported spirits volumes grew at a CAGR of +16% between 2019 and 2024, with a projected +9% gain in 2025. IWSR projections show a +8% CAGR gain between 2024 and 2029, and a +6% CAGR to 2034. Beer imports are pursuing a similarly impressive trajectory.

“India leads TBA expansion in developing markets thanks to such factors as socialising, ongoing premiumisation, improvements in retailing and new product development, with 15-20 million new legal-drinking-age (LDA) consumers per year providing an expanding audience in what remains a dark market,” says Jason Holway, Senior Research Consultant at IWSR. “Spirits and RTDs saw continued growth in early 2025, with beer also posting steady volume gains. Wine’s performance is mixed: sparkling has grown a little, but still wine hasn’t yet broken out of its modest decline.”

What are the main challenges?

With a legal drinking age population fast approaching 1 billion potential consumers, there’s no doubting the scale of India’s potential, but this vast country is extremely nuanced, with state-level variations in taxation, regulation, distribution and retail. Alcohol is one of the most important generators of revenue for state authorities.