Whether at a rooftop bar or at a family party, Tequila has swung its old party photography images with affluent city consumers to cocktails like Picante and Paloma. According to the latest 2024 consumption figures shared with International Beverage Consultant IWSR in 2024, the country's tequila spirit, tequila and mezcal numbers rose by 36% last year.Mint.
The price of vodka hotels has risen by 5% at the price level, making it one of the more powerful people this year. But brandy and rum remained almost flat, with a volume increase of only 2%. The biggest surprise was gin. While the rise of gin seems to have been unstoppable, its volume has increased by only 1% in 2024, suggesting that many native gin gins may wear out, or at least slow down.
The rise of tequila reflects an increasing trend in the attempts of quality ethos in India’s young consumers, which has grown the industry as income and social acceptance rises. IWSR estimates that the country's $32 billion alcohol industry will grow by $7 billion by 2028.
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Last December, Bacardi, the company behind patron Tequila, said it would expand its tequila spirit in India. A year ago, United Spirits Ltd, owned by Diageo, launched Don Julio Tequila in the market. Don Julio is now available in 20 cities and has a new variant, but has received an encouraging consumer response, the company said.
The country currently consumes about 150,000 cases of tequila spirits, including imported tequila and tequila spirits produced in India, according to Conrad Braganza, chief operating officer of the famous Tequila India, known as Desmondji.
Agave India sells its spirit to consumers and several local companies including Maya Pistola Agavepura.
“The market has really been sensational after the pandemic. It has become a “sexy” category associated with markets like the US and India,” Braganza said. “Tequila-based cocktails such as Paloma and Pitt have become mainstream in classic gin and tonics.” The Picante is made with tequila, lime juice, tequila syrup and fresh chili peppers, while Paloma combines tequila with soda, lemon juice and salty edge.
Gin Market
Industry estimates show that two years ago, Craft Gin sold about 350,000 cases in India as a category, peak two years ago. Those who know say the volumes remain the same, suggesting that other white spirits may come at the expense of sacrifice.
“There are already some mergers – few local brands close stores – but we’re also seeing new launches at the same time. In addition, Gin is now more widely used in consumer base than it was a few years ago,” said Vikram Achanta, founder of Delhi-based beverage consultant Tuleleeho. “Nevertheless, mid-sized players are still entering and investing, and gin continues to have itself in the cocktail culture, and slower growth is not an issue.”
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Meanwhile, tequila is gaining attention among wealthy consumers. Achanta added: “Top tequila is attacking with the highest socioeconomic drinkers and is more likely to enjoy a share of luxury vodka than gin.”
Whisky dominates supreme
Whiskey is still an alcoholic beverage in India. IWSR said it still accounts for two-thirds of all spirits, although its growth slowed from an average of 3% per year between 2018 and 2023 to 2% in 2024. According to the consultant, this is because drinkers are moving towards more refined choices. Malt quality (whether Indian, Scots, Irish or Japanese) quickly swallowed up, increasing by 32% annually from 2018 to 2023. While malt's 2024 figures have not yet appeared, the trend of diet rather than mixing seems to hold.
“Whiskey in India is a self-investment and ideal category – it’s growing through consumer demand, innovation and brand investment,” said Sandeep Arora, a Delhi-based beverage consultant. “Now, it’s bigger than ever and bigger than ever.”
Despite the edge decline, he expects significant growth in 2025 in the whiskey range, with growth in subcategories as well.
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“People are becoming increasingly experienced-driven – they are not only sticking to single malt,” Arora added. The category also benefits from cultural transformation. “Drinking has now become part of the Indian social structure, with taboos and more responsible consumption reductions,” he added. “The increase in family bars, increased female participation and innovations in price leap will further drive the growth of whiskey.”
Super advanced category slows down
Spirits are priced between ₹1,100 and ₹2,449 people per 750ml (a “standard” part in the industry, growing 12% in 2024, making it the fastest growing price. Even premium labels ( ₹2,950 to ₹4,549) increased 10% health. But the highest growth slowed down.
Super quality and luxury spirit – Pricing ₹4,550 and above (6%) suggests that high-end splurge is becoming increasingly picky. Although these top-floor bottles still carry cachets, they no longer drive the overall market in the form of medium-distance spirits.
On the other end, entry-level bottle ₹1,099 had barely increased by 2%, which is consistent with the broader market average. Despite this, the Indian spirits market is expected to expand in 2025, according to IWSR. Potential tariff reductions, especially in the UK, could also bring more international brands to the country to cater to the expanding Indian tastes.
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In a growing market like India, people now have more disposable income and consumers are spending on better quality products and services.
“This is a good fit for many alcohol companies to make premiums in the face of evolving situations,” said Shekhar Swarup, co-managing director of Globus Spirits Ltd. While expensive bottles like them still have recipients, most of the action takes place at mid-range.
United Spirit emphasizes the continuity of long-term premium trends in its third-quarter revenue. Even though the top end may take more quarters to resume its historical momentum, the company has no major signs of decline and consumption in social situations just increasing.
