Shares of top liquor companies including Diageo, Pernod Ricard, Remy Cointreau, and Brown-Forman have dropped by as much as 75%, wiping out nearly ₹74 trillion in industry valuation. Factors such as growing health awareness, changing lifestyles, and inflation have contributed to this downturn. In response, several international firms are diversifying into non-alcoholic beverages — Diageo has acquired Ritual Zero Proof, while Carlsberg and Campari-Milano have also introduced similar product lines.
According to a Bloomberg report, the shares of the world’s 50 leading liquor brands have fallen by an average of 46% since June 2021. In contrast, India’s alcohol consumption and market size are on the rise. Per-capita consumption in India grew from 2.4 litres in 2005 to 5.7 litres in 2016, and is projected to reach 6.7 litres by 2030. The Indian liquor market now stands at $60 billion, while shares of United Spirits, Radico Khaitan, and Globus Spirits have surged up to 14 times in value over the past four years. States collectively earned ₹19,730 crore in revenue from alcohol sales during this period.
Sharp Rise in Alcohol Consumption in MP and Rajasthan
In Madhya Pradesh, alcohol consumption rose from 245.33 lakh litres in 2021–22 to 456.44 lakh litres in 2024–25, marking an 86% increase. In Rajasthan, consumption climbed from 235.86 lakh litres to 304.16 lakh litres, up 28.95% over the same period.
Reasons Behind the Surge
According to Future Market Insights, nearly 60% of India’s population is under 35, fueling demand in the alcohol sector. The WHO Global Report indicates that alcohol consumption among Indian women has grown by 50% over the past two decades. Research by Statista and ReportLink also shows that India’s average income has risen by 30%, while demand for premium and branded alcohol is growing at an annual rate of 18%.
1.jpg)
.jpg)
2.jpg)
