Rising Demand for Premium Alcohol in India's Hindi Heartland
Premium alcohol boom reaches Hindi belt as liquor makers look beyond metros: Report
Moneycontrol
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India's liquor companies are shifting focus to the Hindi heartland, targeting states like Uttar Pradesh and Rajasthan for premium alcohol sales. Increased incomes and changing lifestyles are driving this trend, with premium spirits gaining popularity in smaller cities and urban centers.
- 01States like Uttar Pradesh, Rajasthan, and Bihar are seeing a surge in demand for premium spirits.
- 02The premium alcohol segment is benefiting from supportive state policies and rising disposable incomes.
- 03Radico Khaitan reports that premium brands account for over 70% of its Indian-made foreign liquor sales value.
- 04Cocktail culture is expanding in Tier-II cities such as Lucknow and Kanpur.
- 05Premium beer sales have increased by 8-10% in states like Uttar Pradesh and Jharkhand over the past year.
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Leading liquor companies in India are increasingly targeting the Hindi heartland as a key market for premium alcohol consumption. States including Uttar Pradesh, Rajasthan, and Bihar are experiencing a shift from mass-market liquor to premium spirits, driven by rising incomes, changing lifestyles, and supportive state policies. Sanjit Padhi, CEO of the International Spirits and Wines Association of India (ISWAI), noted that consumers are moving towards a consumption society, influenced by higher disposable incomes and social media exposure. Policy reforms in various states have further facilitated this trend, with Uttar Pradesh aiming to become a liquor manufacturing hub and Haryana expanding premium retail formats. The demand for premium whiskies, craft gins, and luxury vodkas is growing, with companies like Radico Khaitan reporting that premium brands now contribute significantly to their sales. Additionally, premium beer sales have risen by 8-10% in regions like Uttar Pradesh and Jharkhand, underscoring the expanding appetite for premium alcoholic beverages in India's emerging markets.
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The growing demand for premium alcohol is expected to generate higher excise revenues for state governments and stimulate local economies.
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