With a growing population, rising disposable incomes, changing consumer tastes and a growing young urban demographic, the Indian market is increasingly attractive for FMCG.
And that’s true for the beverage alcohol category: India’s total beverage alcohol volume rose 7% in the first half of 2025, making it one of the fastest growing alcohol markets worldwide.
In fact, the country is set to become the world’s fifth largest alcohol market by 2031, according to IWSR (coming behind only China, the US, Brazil and Mexico).
Volumes are growing fast, but so is value. Premiumization is a key trend (premium and above categories are outpacing overall growth): with a rising interest in craft, flavored and imported beverages - particularly among millennials and Gen Z.
John Royerr is the founder of Ochre Spirits, an artisanal alcoholic beverage brand, who spend 15 years working in the food and beverage industry with brands such as Witlinger before launching his own spirits innovation in 2023.
Based in Goa, where the company has its flagship location, the Ochre Craft Spirits Bar, he picks out the five top trends to watch in the coming year and beyond.
1. Craft spirits: The new social currency
India’s craft spirits movement is accelerating fast. Young consumers are driving a shift toward quality, authenticity, and homegrown innovation.
“Small-batch gins, artisanal rums, and new-age whiskies often infused with Indian botanicals and regional character have become the preferred choice of 25–40 year-olds, who increasingly equate premium craft bottles with identity, taste, and cultural confidence,” said Royerr.
Indian twists
Ochre Spirits takes inspiration from the vibrant and diverse spirit of Goa. Its products include Saffron Gin, Mango Citron Rum and Nutty Berry Rum.
Its tasting room in Sinquerim, Goa, lets aficionados try a collection of artisanal spirits that aren't always available on retail shelves, paired with local cuisine.
“Backed by the rise of mindful drinking, where “quality over quantity” is the dominant mindset, craft spirits are now seen as an elevated, intentional experience.
“For millennials and Gen Z, sharing a craft bottle isn’t just social drinking, it’s a modern ritual that celebrates craftsmanship, storytelling, and conscious consumption.
“In a generation defined by experiences, not excess, craft spirits have become the new badge of taste and aspiration in India’s evolving drinking culture.”
2. Zero-proof products: A revolution or fad?
Globally, the NA category is projected to grow at double-digit rates, and India is beginning to follow suit.
“As younger consumers become more health-conscious and socially aware, the demand for low and non-alcoholic (NA) beverages is rising faster than ever,” said Royerr.
“The shelves today are no longer limited to sugary soft drinks: they now feature botanically brewed sodas, non-alcoholic beers, and sophisticated zero-proof cocktails that mirror the flavour complexity of traditional spirits.
“Young drinkers increasingly want to participate in the ritual and social experience of drinking, while sidestepping the after-effects associated with alcohol. This behavioral shift is expanding the space for mindful alternatives that feel premium, inclusive, and celebration-ready.”
However, Royerr cautions that this trend is still in its early stages in India and how this plays out long-term remains to be seen.
“Industry analysts believe the next 24–36 months will be crucial,” he said.
“If NA spirits can deliver authentic flavor, build cultural relevance, and maintain premium cues without alcohol’s functional role, they may carve out a permanent niche.
“If not, the category risks plateauing as a lifestyle fad.
“Either way, the momentum cannot be ignored. The rise of NA beverages signals a new openness in India’s drinking culture one where choice, wellness, and experience are beginning to matter as much as the alcohol itself.”
3. Sip with purpose: Functional beverages
Craft spirits, in particular, are pushing the boundaries of what alcoholic beverages can be and mean to consumers.
“While alcohol can never position itself as “healthy,” the category is witnessing a clear shift toward better-for-you cues, lower sugar, lower calories, cleaner labels, and thoughtfully crafted mixers,” said Royerr.
“This evolution isn’t about health-washing; it reflects a broader cultural move toward intentional living. Consumers want their choices, even their indulgences, to align with a sense of purpose and wellbeing.
“For the alco-bev industry, this intersection of functionality and flavour represents a compelling frontier. Brands that can genuinely integrate wellness-inspired innovation without overclaiming, will shape the next chapter of premium drinking in India. The message is clear: today’s consumer doesn’t just want a buzz; they want a drink that resonates with their lifestyle, values, and aspirations.”
4. Green glasses: Putting sustainability front and center
Royerr says that sustainability is increasingly important to consumers in India, as it is around the world.
“Sustainability is quickly becoming a non-negotiable for a new generation of Indian drinkers,” he said.
“From eco-friendly packaging and ethical sourcing to water-saving production methods, the expectations are higher than ever. Brands are stepping up by trading in heavy glass bottles for lighter, more recyclable materials, rolling out refill stations, and getting creative with biodegradable labels.
“It’s not just about ticking boxes; it’s about genuinely rethinking how drinks are made and delivered. As environmental responsibility takes center stage, the brands that go the extra mile are earning not just loyalty, but also those coveted spots on premium shelves.
“In this new era, being green isn’t optional; it’s what sets leaders apart.”
5: Premiumization - but not at any cost
Premium -and-above price bands grew 8% in volume in the first half of 2025, compared to 7% for alcohol overall, according to IWSR stats. But it’s important to unpack what ‘premium’ means, says Royerr.
“Premiumization in India is undergoing a meaningful shift,” he explained. “The modern consumer isn’t simply paying for a higher price tag, they’re paying for intention, craftsmanship, and an experience that feels personal.
“As value-conscious drinkers become more discerning, the definition of “premium” is expanding beyond luxury cues to include authenticity, provenance, and storytelling.
“Small-batch craft spirits, curated limited releases, and bespoke gifting formats are becoming the new drivers of aspiration. Even the ready-to-drink category is being reimagined, with elevated ingredients and thoughtful formulations transforming RTDs into accessible luxury for urban, digitally fluent consumers.
“In today’s landscape, premium isn’t purchased, it’s felt. Consumers are choosing brands that offer emotional resonance, cultural relevance, and experiential depth. They aren’t merely selecting a bottle; they’re investing in a narrative, a moment, and a meaningful connection.”
