Alcobev industry projects up to 20% growth in December quarter on festive demand

New Delhi: The alcoholic beverage sector is anticipating up to 20 per cent growth in the October–December quarter, buoyed by strong festive season sales and rising demand for premium spirits across urban and smaller markets.

Industry executives reported a sharp rise in sales during the festive period spanning Dussehra and Diwali, covering categories such as Indian-made foreign liquor (IMFL), Scotch, rum, and white spirits including vodka, gin, tequila, and white rum.

“The festive months continue to be a key consumption period in India, and this year’s performance has reaffirmed the growing consumer preference for premium and thoughtfully crafted spirits,” said Amar Sinha, Chief Operating Officer at Radico Khaitan.

He added that brands such as Rampur Indian Single Malt and Jaisalmer Indian Craft Gin recorded strong growth across several high-potential markets.

“With the momentum built this festive season, we remain confident of maintaining a healthy positive trajectory into the third quarter as well,” he noted, adding that both retail and on-trade channels are reporting steady demand.

The Confederation of Indian Alcoholic Beverage Companies (CIABC) expects the momentum to continue through Christmas and New Year, supported by rising disposable incomes, higher consumer spending, and a young, aspirational demographic.

“Encouraging feedback from the ground suggests liquor sales are rising, particularly in the premium and luxury segments, with notable traction in metros and Tier-II cities,” said Anant S Iyer, Director General of CIABC. A good monsoon and a positive economic outlook are expected to further boost consumption, he added.

The International Spirits and Wines Association of India (ISWAI), which represents global spirits and wine companies, said the festive season has been “very buoyant”, supported by consumer buying and government-led GST benefits.

“Reports on the ground indicate an upswing in double-digit numbers, especially in the premium spirits category. The NCR region has seen record sales, with Noida and Gurgaon leading the way,” said Sanjit Padhi, CEO of ISWAI.

ISWAI members include Bacardi, Beam Suntory, Brown-Forman, Campari Group, Diageo-United Spirits, Moët Hennessy, Pernod Ricard, and William Grant & Sons.

Regional trends also reflected strong consumer activity. Telangana’s excise department reported revenue of around Rs 1,000 crore over two days of Dussehra festivities, largely from IMFL sales, while Kolkata saw a 15–16% increase in liquor sales during the ten-day Durga Puja period.

According to ISWAI, the domestic market for branded spirits reached 408 million cases in 2024, contributing Rs 3.5 lakh crore in excise revenue in FY24. Between 2019 and 2024, the overall sector grew at a compound annual rate of 3.4%, while the premium segment recorded double-digit growth, expanding its share from 42 to over 50%.

CIABC data showed that sales of IMFL whisky slowed to 1.4% in FY25, reaching 40.17 crore cases (12 bottles of 750 ml).