India Alcobev: Premium tailwind intact; Radico, ABD to outperfom UNSP

Research evidence excerpt

India Alcobev: Premium tailwind intact; Radico, ABD to outperfom UNSP

Consumer Staples

Equity Research

June 29, 2026

Executive Summary

Indian Alcohol Industry is structurally strong, spirits-led market: India’s alcoholic beverages India’s alcobev industry is a fast-growing,

industry (US$48bn / INR 4.5tn) is among the fastest-growing large markets globally, supported by spirits-led market, driven by premiumisation,

favourable demographics, rising incomes, and evolving consumer preferences. Spirits dominate favourable demographics, and a shift

the industry (~70% of revenues), led by whisky, and remain the primary driver of value growth due towards higher-value consumption.

to strong distribution, cultural preference, and higher consumption intensity. Beer is the second-

largest segment (32%/16% share of alcobev volumes/value), benefiting from urbanisation and a

younger consumer base, while country liquor contributes significant volumes (~31% of alcobev

volume) but limited value (~11% alcobev value) and is gradually declining in relevance. Over

time, the industry has transitioned from steady volume growth to higher value growth, driven by

premiumisation and formalisation. In our view long term, India remains a structurally attractive,

multi-decade growth market.

Global slowdown vs India’s structural growth advantage: Global alcobev markets (US/EU) are India offers a structural growth advantage in

witnessing stagnation due to aging populations, health-led moderation, and category substitution alcobev, driven by favourable demographics,

(RTDs, no/low alcohol). In contrast, India offers a unique growth profile, driven by a young rising premiumisation, and underpenetrated

population, increasing legal drinking age cohort (+100mn LDA in 5 yrs), and rising affordability.