Peg by peg, Vodka's share is rising in India

Mumbai: Vodka is stealing a record slice of India's whisky-dominated liquor market, with younger consumers and women driving the sharpest shift ever toward white spirits. The trend has given a fillip to the company that had already premiumised its whisky portfolio.

The vodka category's share has risen to 6.1% from 3.8% in 2025. It's a major structural shift which is happening towards the white spirits, especially vodka," Radico Khaitan MD Abhishek Khaitan said. "Vodka's mixability is one factor, while flavours are helping bring new consumers into the category," he said in an exclusive interaction.

That marks its biggest jump yet in India and, in a spirits market of about 400 million cases, a one-percentage-point shift represents roughly four million to five million cases.


The incremental volume from vodka's latest share gain is now bigger than the entire gin and tequila categories combined. The share gain has come largely at the expense of brown spirits - whisky, rum and brandy - the three largest categories that account for about 90% of the overall market.

Khaitan, who said that until around 2016 he had considered selling Radico Khaitan about three times, spent years building its vodka business before the category's growth became visible. "It's taken that time," he said. "In the last five years, vodka as a category has grown by 20%."

The change is being driven by younger consumers and women, as well as the growing popularity of flavoured and more mixable spirits, he said. States including Rajasthan and Uttar Pradesh are seeing vodka's share rise rapidly, with the category gaining ground from whisky, rum and brandy.

Globally, vodka accounts for about 28% of the spirits market, leaving India with considerable headroom, Khaitan said. The category has grown about 20% annually over the past five years, but the acceleration has become more visible as the base has expanded.

Radico's flagship Magic Moments vodka sold 3.25 million cases in the June quarter, up 43% from a year earlier. The company has about 60% of India's vodka market.

PREMIUM PUSH

Radico's upmarket move has taken it into a part of the spirits industry once dominated by multinational brands.

For instance, Radico's whiskies Virasat, aimed at the roughly ₹3,000-₹4,000 price segment, which Khaitan describes as "affordable luxury," while Rampur ranges from about ₹8,500 to as much as ₹5 lakh. The company had been absent from the middle of that market because of limited malt capacity, he said.

Radico's premium portfolio gives it less exposure to fluctuations in grain and glass costs and reduces its dependence on state-level price increases, Khaitan said. It also reflects a deliberate decision taken years ago to move away from commodity selling.

The shift toward premium products has also allowed Radico to reduce its dependence on lower-priced liquor. Its prestige & above contribution has risen to 52% of the portfolio from about 40-43% earlier.

However, the company will retain a regular-price portfolio only in states where it generates adequate margins, Khaitan said. While lower-priced brands offer operating leverage because existing distribution, and manufacturing infrastructure can be utilised, their margins are lower than premium products.