Data shows that compared to millennials The main consumer of alcohol in India.
“Global Alcobev consumption has dropped significantly, and India is not immune to this trend,” said Rajeev Samant, founder and CEO of Sula Vineyards. “Even if we consider the demographic dividend, we will still see people on Instagram promoting a more alcohol-free lifestyle. Things have certainly changed. Consumption of alcohol may not evolve as we once expected.”
Traditionally, the age group under 30 has never been a time-consuming wine, he said. “That is, this cohort in India today may consume more wine than previous generations.”
Generation Z (people with legal drinking age) has a very different attitude towards Indian alcohol than millennials, according to IWSR, a global tracker for the alcoholic beverage industry.
“In our latest BEVTRAC report, the report of Consumer Sentiment in India – Z drinkers who choose to drink less and less alcohol,” said Jason Holway, senior consultant at IWSR.
In a recent survey of full-strength drinkers, 25% of Generation Z drinkers never chose to quit alcohol for lifestyle reasons, while 41% chose alcohol for a month or more for lifestyle reasons. “In India, baby boomers, Gen X and Gen Z are more likely to choose to drink less than drink more (the millennials are the exception and continue to drive drinking).”
According to IWSR, millennials are the generation in India and are the least likely to choose temperance. Millennials choose to drink more, those who choose to eat less than 8%. About 28% of millennials never choose to quit alcohol for lifestyle reasons, while 36% of millennials choose alcohol for a month or more for lifestyle reasons.
He said that while older consumers continue to adopt established drinking methods, younger legal drinkers are actively reshaping the norms.
This does not mean that Gen Z is completely abstaining from it. As contact between bars, bars and live events increases, young consumers are still drinking, but with more restraints and conscious approaches.
Take Kanika Dua in New Delhi as an example. The 28-year-old cuts down three drinks per night to a maximum of two or three drinks. “It came out the next day and with the early work I couldn’t afford the midweek rave,” she said.
Alok Gupta, managing director of alcohol company Allied Blenders and Distillers (ABD), said the era of massive scale is over. “It is necessary to consume better – so consumers may choose two good cocktails. Consumers want to prioritize morning exercise or early morning work commitments,” he said.
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Gupta said that increasing awareness of health and fitness is affecting beverage choices. “The lens of their eating meals (food and beverages) has changed,” he explained.
He added: “The fitness work will focus on better consumption, which expands to food and drinks considering factors such as calories and protein carbohydrate balance. The focus is not only on drinking less, but on drinking better, resulting in a premium.”
Consumers are drinking better gin or tequila and even trading better whiskey or scotch.
Vikram Achanta, founder of Delhi-based beverage consulting firm Tulleeho, said Gen Z’s influence in India is still small.
“Some say young consumers drink less, but from a quantitative standpoint, that doesn’t make sense. India is isolated from some of the transformations we’ve seen in the West,” he said.
Still, they know better about alcohol content. “Spritz (with 8-10% alcohol content) may be more attractive than martini (20-35% alcohol content),” he said.
Mint Earlier reports said that more and more urban Indians embraced sobriety or moderation, not necessarily due to heavy drinking, but due to health issues related to their lifestyle.
This rising “sober” sentiment is increasing demand for non-alcoholic alternatives. This has attracted many new era startups, such as Fashion Botany, brands such as Sober, Copenhagen’s Glittering Tea, and other brands focusing on creating or importing products from different markets. Although the category is still below 1% of the vast Alcobev market, it is gradually gaining attention in metropolitan cities. Global giants such as Heineken and Beefeater have also entered the space.
Despite the growth of temperance trends, the amount of alcohol in India is still growing. The country has a large population and remains a large market for alcoholic beverages. From 2018 to 2023, the total alcoholic beverage industry in India has a compound annual growth rate (CAGR) of more than 2%.
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According to ABD’s Gupta, more and more legal drinkers enter the market every year, and evolving social norms have led to women becoming more receptive to social drinking and increasing drinking.
Gupta said the growth of volume may slow, but the number of consumers is increasing and drinking is better.
India has 180-19 million first voters in the 2024 general election, and an estimated 65 million Indians will reach legal drinking age within the next five years (depending on the region).
For brands, the message is clear: it is crucial to interact with this growing consumer base. Samant of Sula said: “In festivals like Sulafest, 90% of the audience are Gen Z.
