India’s alcoholic beverage industry is poised for significant growth, with revenue expected to rise by 8-10% to ₹5.3 lakh crore in FY26, according to a report by Crisil Ratings. This follows an impressive compound annual growth rate (CAGR) of 13% over the past three years.
The industry’s operating profitability is projected to increase by 60-80 basis points (bps), driven by premiumisation trends. The report highlights that spirits—dominating 65-70% of the market—will continue to lead, while beer, wine, and country liquor account for the remainder.
Volume growth, estimated at 5-6%, will be fueled by urbanisation, an expanding drinking population, and rising disposable incomes. Premium and luxury segments, priced above ₹1,000 per 750 ml, are expected to see 15% revenue growth, contributing 38-40% to total spirits revenue this year.
Despite slight increases in input costs, higher volumes and improved price realisations will support profitability. Key raw materials like Extra Neutral Alcohol (ENA) and barley, which comprise 60-65% of total costs, will remain critical cost factors.
Crisil Ratings predicts that sustained demand for premium products will enhance the industry’s performance, reflecting its growing appeal in urban and affluent markets.
source: PTI
