Gen Z in 'high spirits' as boomers wind down

Mumbai: India's youngest legal drinkers in cities are drinking alcohol at a faster pace than ever, while Baby Boomers-people in their 60s and older-are slowly stepping back, challenging the narrative that Gen Z is turning its back on alcohol.

The share of Gen Z consumers, aged 21-28, who drink alcohol climbed to 80% in March 2026, up from 70% a year earlier and 60% in 2023, according to exclusive India data from IWSR's Bevtrac survey shared with ET.

"The narrative that Gen Z is the generation of moderation is now conclusively debunked," said Marten Lodewijks, president and managing director of IWSR. "If current trends continue, it may actually be the Boomers, not Gen Z, who deserve that title."


India is one of the world's largest and fastest-growing alcohol markets at a time when growth is slowing in many developed economies.

"Globally, we are seeing the alcohol industry slowdown, but India continues to stand out as a growth market," said Amar Sinha, managing director of Allied Blenders and Distilleries. "Much of that growth seems to be coming from younger consumers entering the category, particularly through premium and above segments."

Sinha said while Gen Z consumers in many overseas markets are moderating alcohol consumption because of changing lifestyles and more entertainment alternatives, India is charting a different course.

In addition, older generations continue to drive demand for traditional spirits such as whisky, while younger consumers are entering through premium offerings including vodka, tequila and other international spirits.

"Previous generations inherited drinking occasions. Gen Z is creating new ones," said Ahmed Rahimtoola, chief marketing officer at Tilaknagar Industries. "They are far more exploratory, experience-led and willing to experiment across categories. Their choices are influenced as much by design, storytelling and social relevance as they are by the liquid itself."

Rahimtoola said premiumisation is no longer confined to metropolitan markets as rising digital exposure and incomes and wider access to premium brands are driving similar aspirations across Tier II and Tier III cities.

Nearly 60% of respondents in India said their last drinking occasion was at a bar, club or restaurant, while only 32% drank at home. Around seven in 10 started drinking after 7 pm bucking the post-pandemic trend in Europe and North America where consumers increasingly drink at home earlier in the day.

"India is bucking this trend, with its youthful demographic and vibrant nightlife continuing to attract consumers to bars and restaurants into the night," said Sarah Campbell, global head of research at IWSR, which surveyed 2,545 adults across 11 cities and found overall alcohol participation among urban affluent Indians rose to 77% from 67% over the same period.

According to United Spirits, India's largest alcobev company, the country shows strong signs of premiumisation in the segment despite regulatory uncertainty, geopolitical disruptions and uneven demand, as consumers prioritise quality over simply drinking more.

"Consumers today are not simply drinking more premium brands; they are engaging with brands differently. They are seeking authenticity, provenance, elevated experiences, and brands that reflect personal identity and aspiration," said United Spirits company chief, Praveen Someshwar in its annual report.

Whisky remains India's biggest consumed spirit. The share of consumers who reported drinking Indian whisky in the past six months rose to 57% from 53% in 2023, while blended Scotch increased to 43% from 38%.