India begins pouring in a bigger glass as global alcohol demand takes a hit

India's alcohol consumption grew 10% in the first half of 2026, the fastest pace among 21 major markets tracked by drinks research firm IWSR, even as demand weakened in some of the world's largest markets. The estimates, shared exclusively with TOI, show that India was the only market in the group to record an increase across every category and subcategory tracked by the firm.

Consumption rose across a wide range of drinks, including beer, whisky, vodka, gin and wine, highlighting the contrast between India's growth and the broader global slowdown in the beverage alcohol industry.

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Beer recorded the strongest growth among the major alcoholic beverage categories, with consumption of full-strength beer rising 16% year-on-year during January-June. Ready-to-drink (RTD) alcoholic beverages, which include premixed cocktails and other packaged drinks, grew 12%, while Indian whisky volumes increased 4%.

Among other spirits, blended Scotch whisky consumption rose 8%, while vodka and gin grew 6% each. Rum and non-Cognac brandy volumes increased 3% apiece. Still wine consumption was up 2%, while fortified wine grew 7%, the report said.

Interestingly, no-alcohol beer registered the sharpest growth among the major subcategories for which IWSR provided India-specific figures. Consumption of the beverage surged 25%, outpacing all major alcoholic drink categories in percentage terms.

The growth in India stands in contrast to the overall trend across the 21 markets tracked by IWSR, which together account for 76% of global beverage alcohol consumption. Total volumes across these markets declined 1% in the first half of 2026.

The US, the world's largest alcohol market alongside China, reported a 4% fall in consumption, while volumes in China declined 3%. Beer consumption fell 4% in the US and 2% in China, compared with a 16% increase in India.

However, excluding the US and China, alcohol consumption across the remaining markets grew 1%.

India led the growth rankings, followed by Colombia, where consumption increased 9%, South Africa at 5%, Brazil at 3% and the UK at 2%. Mexico and Thailand also recorded growth, though IWSR did not disclose the rates.

"India continues to be one of the most important markets for the beverage alcohol industry worldwide. This latest data just reinforces this narrative. Global brands that want to expand internationally are increasingly looking to India as a key source of their growth plans," Marten Lodewijks, president and managing director of IWSR, told TOI.

The divergence between India and the wider global market is also evident across individual beverage categories. Still wine consumption declined 4% across the 21 markets, while India recorded 2% growth. Similarly, no-alcohol beer volumes rose 8% across the markets, compared with a 25% increase in India.

IWSR attributed the global pressure on alcohol consumption to growing moderation trends and the use of GLP-1 weight-loss drugs. Inflation, tariffs and economic uncertainty have also affected consumers in the US, while China's slowing economy and other structural challenges have weighed on demand.


(With inputs from TOI)