India: Distilled Spirits Wine and Beer Market Update 2024

India’s total alcoholic beverage sector is the world’s third largest, with yearly sales of $44 billion according to Euromonitor. Despite India’s high import tariff structure, lack of uniformity in state excise rates, state specific regulations, and limited opportunities for the marketing of alcoholic beverages, the sector continues to witness significant growth that is set to expand to $55 billion by 2027. India offers strong growth prospects in the alcoholic drinks sector over the next five years driven by an expanding, young, middle-class, and a burgeoning premiumization trend. In addition, the current low per capita consumption creates significant room for growth. India’s imports of alcoholic beverages in 2023 reached $1 billion, a 74 percent year-on-year increase dominated by distilled spirits with 56 percent market share, with U.S. origin exports up by 32 percent to $20.5 million.