An Upward Spiral in 2026

Rising disposable incomes, premiumisation and evolving consumer tastes are set to fuel robust growth in India’s alcobev industry in 2026, with spirits, wine and craft beverages gaining momentum across metros and emerging markets alike. Also, policy reforms, as seen in Uttar Pradesh, will act as a booster dose for the industry, opines AMAR Sinha, Chief Operating Officer, Radico Khaitan Ltd.

The months ahead look promising for the alcoholic beverage industry. As most industry observers put it, 2026 will turn out to be a year of calibrated growth, led by premiumisation rather than volumes. Structural shifts like premium gifting, stronger on-trade recovery and rising aspiration beyond metros will continue to drive value.

The key opportunity lies in building scale and equity for Indian premium spirits, even as regulatory unpredictability at the state level remains a watchpoint. “The focus will be on disciplined execution and longterm brand building,” says Amar.

Looking Back

If one were to study the shape the industry took in 2025, it was a year of strategic consolidation and premiumled growth. The demand remained resilient despite cost pressures, with premium and luxury segments continuing to outpace the broader market. “Greater policy stability across key states supported longterm planning, while infrastructure investment and sustained consumption tailwinds reinforced industry momentum,” says Amar.

Notably, progressive reforms in Uttar Pradesh, widely seen as emblematic of a truly free-market approach to the liquor industry, followed by Andhra Pradesh’s move to open up private distribution, expanded consumer choice and improved market efficiency. Together, these shifts signal a structurally healthier domestic market, even as Indian spirits continued to gain meaningful acceptance and credibility on the global stage.

FTAs & Duty Rationalisation

It is widely believed that customs duty rationalisation and FTAs will increase competitive intensity, but will not fundamentally alter the opportunity for strong domestic players. “Companies with robust manufacturing, ageing capabilities and brand equity will remain well-positioned. FTAs can improve access to inputs and exports, provided partner markets offer reciprocal facilitation, faster approvals and equitable shelf access for Indian brands,” Amar opines.

Focus Areas

Looking into 2026, Radico Khaitan aims to strengthen its focus on infrastructure spending, employment generation and private investment. These will directly boost consumer confidence and discretionary spending, supporting sustained demand for alcobev and other staple categories.

As far as long-term industry growth is concerned, Amar opines a stable and predictable policy environment could materially accelerate industry growth. There is earnest hope that states like Bihar will revisit their stance and open up the alcobev sector, unlocking incremental demand while creating meaningful revenue and employment opportunities.