Policy Shifts May Reshape Alcobev Industry

Recent policy shifts are redefining the contours of the alcobev industry, as has been seen in Uttar Pradesh. They have been influencing everything, from pricing and distribution to market access and investment. Changes in taxation, licensing norms and state regulations are prompting producers and retailers to recalibrate strategies, even as the sector adapts to a more tightly governed yet opportunity-rich landscape. MAYANK Yadav, Director, My Wines & Spirits Pvt. Ltd., elaborates on the trends that are set to shape growth in 2026.

Cautiously positive. That’s going to be the outlook of many in the alcoholic beverage industry for the year 2026. The emphasis is on “positive” but growth being directly linked to various state policies, some believe that only changes to the latter will provide the momentum the sector needs. “Imported products will grow, but mainly in premium segments and select states like Haryana where consumption maturity is improving,” forecasts Mayank.

There is also a concern about rising competition and cost pressures. “We are focusing on tighter portfolios, realistic pricing and deeper distributor alignment in key markets to tackle such challenges,” Mayank adds. As such, growth in the alcobev industry is slated to be incremental rather than explosive, with premium brands expected to outpace entry-level imports.

In Retrospect

According to industry analysts, 2025 was a steady but tough year. Demand existed, but margins were under pressure due to duties, logistics costs and frequent excise changes. From Haryana perspective, execution mattered more than expansion as only well-planned portfolios worked. A surprise element was the growing comfort with premium spirits, especially whiskey and tequila, even among firsttime premium buyers. “Consumers were more informed and curious than before,” Mayank states.

In the case of My Wines & Spirits, premium spirits performed better than wines. Brands with a clear story and stable pricing did well in Haryana’s on-trade and premium retail. “Further, frequent policy changes and operational timelines in Haryana impacted planning. Predictability remains the biggest challenge for importers,” Mayank adds.

Policy Impacts

Global Travel Retail will help in brand discovery and credibility, even if the volumes remain limited. As for free-trade agreements and tariff reductions, real benefits on ground are likely to be modest. “Everyone is waiting to see actual implementation and statelevel impact,” Mayank says. His wish list for 2026 as an importing company includes greater policy stability, faster approvals and a clearer long-term approach from excise authorities.

What to Watch?

For the coming months, the outlook is that premium spirits that are aspirational yet approachable on pricing will remain in focus. “That space has strong potential,” Mayank comments. In terms of behaviour shifts influencing buying decisions, consumers are increasingly seeking authenticity rather than hype. They are preferring brands they can understand, relate to and trust. In his view, India is a very attractive long term import market, but is complex at the same time. “Haryana is encouraging, provided the policies remain stable,” he elaborates.

Regions gaining traction for India include Ireland, Scotland, Italy, Chile and Mexico, especially for spirits and wines. Also, India is moving from a test market to a priority market for global brands, with serious brand owners now looking at India with a long-term mindset rather than short trials. He is optimistic about greater traction for premium brands in 2026.