India’s spirits scene is buzzing louder than a bar on a Friday night. Forget the pub crawls across London or wine tours in Bordeaux—India’s the new hotspot for spirit aficionados, and the numbers are here to prove it. Since the world tried to shake off the pandemic blues, India’s liquor market didn’t just recover; it boomed, topping charts and surpassing the spirits consumption of powerhouses like the UK, France, and Spain combined. From a modest 228 million cases back in FY11 to a whopping 330 million by FY18, this market’s been doing the financial equivalent of popping bottles

When COVID-19 hit, things looked dicey with sales dipping to 311 million cases in FY21. But, like any good comeback story, the market wasn’t down for long. Fast forward three years, and it’s ballooning to a robust 412 million cases by FY24. That’s not just recovery; that’s turning adversity into advantage.

Cheers to the High Life: Premiumization is Here to Stay

So, what’s driving this spirited surge? It’s not just about drinking more; it’s about drinking better. Vikram Damodaran, the chief innovation officer at Diageo India, captures the essence, stating, “We feel consumers should drink better, not more.” With 20 million fresh faces reaching legal drinking age every year, the focus is on diversifying tastes rather than just upping the volume. Despite the global economy playing a game of snakes and ladders, India’s booze business is booming, thanks largely to a growing taste for the finer sips in life.

The industry’s pivot to premium isn’t just about snob appeal. It reflects a broader trend of at-home consumption and a push towards higher quality over quantity. Jean Touboul, CEO of Pernod Ricard India, notes a seismic shift in consumer behavior, with an emphasis on value driving double-digit growth in premium categories. It’s clear that the Indian middle class isn’t just expanding; it’s evolving, with refined tastes and wallets ready to back up that sophistication.

From Mass to Class: The New Indian Spirits Saga

Let’s talk demographics: out of India’s sprawling 1.4 billion population, about 300 million are of legal drinking age. However, half of this demographic historically gravitated towards more economically priced, unbranded options. Today, a growing segment of about 150 million middle-class consumers is pushing the market towards more premium and super-premium choices, showing that the spirit of luxury isn’t just reserved for the elite.

The journey from mass market to premium potables shows no signs of slowing down. Despite a slowdown to a growth rate of 4% in the latest fiscal year—a shadow of the heady 12-15% post-pandemic surge—the demand for deluxe drinks continues to dominate discussions from boardrooms to barstools. As Touboul sums it up, the future looks not just optimistic but downright bullish.