Imported Brands Remain Cautiously Optimistic

In 2026, the imported alcohol sector will operate in a far more demanding environment, one shaped by informed consumers, tighter regulations and rising expectations around sustainability and authenticity. Brands are already adapting through premium positioning, transparent sourcing and region-specific strategies to remain competitive in an evolving global marketplace. According to SUMEDH Singh Mandla, CEO, VBev and AWS Global, success in this new landscape will depend on digital transparency, disciplined execution and the ability to adapt across diverse regional markets.

The outlook for imported alcoholic beverages in India in 2026 is going to be cautiously optimistic. This sentiment is driven by India’s favourable demographics, rising disposable incomes and the rapid evolution of urban consumers in terms of taste, awareness and expectations. Growth, however, is unlikely to be uniform across categories. Premium brown spirits, vodka, emerging agave-based spirits and well-positioned imported wines are expected to continue seeing healthy traction, particularly in metros and tier I cities.

“Consumers are far more informed and brand-aware today. They are looking for authenticity, consistency and value, rather than simply chasing discounts or the lowest prices,” says Sumedh. In 2026, companies that balance brand building with execution discipline, especially in on-trade channels, key metros and through tight portfolio curation, are likely to outperform those relying solely on wide distribution or price-led strategies. Global travel retail is also playing an important role. As outbound travel from India increases, duty-free shelves are shaping discovery, trial and aspiration, accelerating the adoption of premium imported brands in the domestic market.

A Year of Recovery

Industry veterans agree that 2025 turned out to be a year of measured recovery for India’s imported alcohol beverage businesses. The first half remained cautious, with significant focus on inventory clean-up, pricing pressures and frequent changes in state excise policies. “The mood clearly improved in the second half, especially around the festive season and in premium on-trade accounts, where spend per occasion started to look healthier again,” Sumedh states.

Growth, however, was selective rather than broad-based. Premium and superpremium brands performed noticeably better, reflecting India’s steady shift from volume-driven consumption to quality and experience-led choices. Scotch remained the backbone of most portfolios, but Irish whiskey, vodka and premium tequila emerged as strong performers, supported by a growing cocktail culture and a younger, globally exposed consumer base willing to experiment. What stood out is that consumers were willing to spend more per occasion, even though overall consumption frequency did not grow dramatically.

“The year also saw celebrities move from endorsements to ownership, with sports and film personalities launching brands alongside PE (private equity) and venture partners. This added fresh energy to premium and craft segments and underlined India’s shift toward lifestyle-led spirits,” Sumedh elaborates.

On the downside, state excise frameworks continued to be the single biggest commercial variable. Importers with stronger compliance capabilities, pricing discipline and a selective state focus navigated 2025 far more effectively than those chasing aggressive, broad-based expansion.

Hopes for 2026

At the top of the industry’s wish list is a more uniform and predictable excise framework across states. Greater stability and alignment in policy, even if taxes remain high, would significantly improve ease of doing business, planning cycles and confidence in making long-term investments in India. Such consistency would support premiumisation, help serious players take a longer view of sustained brand building, and ultimately benefit all stakeholders, including state governments, through more sustainable volume and value growth. India’s liquor market is clearly in an evolution phase, and with the right policy support and disciplined execution, imported brands can contribute meaningfully in shaping its next decade of growth.

The Long Game

India continues to be one of the most attractive growth markets globally for international alcohol beverage players. As the world’s largest consumer of whisky and among the largest markets for brandy and rum, India features prominently on the strategic roadmap of most global spirits companies. “Most leading international producers now see India as a priority market rather than an experimental one. At the same time, mid-sized and niche brands increasingly recognise the value of long-term partnerships with Indian importers who bring both regulatory expertise and distribution depth,” says Sumedh.

Recent free trade agreements (FTAs) and tariff reduction discussions are a step in this direction, though their on-ground impact remains gradual and uneven. “The India–UK FTA, with its phased reduction in import duties on Scotch and gin, is structurally positive and sends a strong signal to the global industry,” Sumedh observes. However, state excise duties, local levies and other state-level taxes continue to account for a significant portion of the final retail price.

As a result, reductions in central customs duties do not automatically translate into sharply lower consumer prices in most markets.

What FTAs do offer is improved long-term viability, stronger portfolio economics and more room to innovate and launch premium brands over a multi-year horizon, rather than triggering an immediate price reset at the shelf.