Business · Companies · 8 hrs ago
India spirits growth slows as inflation weighs on cheaper liquor
India’s spirits market growth slowed to 4.6% by volume in the September quarter, down from 6.4% a year earlier.
The slowdown was sharper for lower-priced spirits, which grew 3.7%, while premium spirits grew 5.7%.
India’s market is heavily weighted toward cheaper drinks, and industry executives estimate that nearly half of drinkers consume low-cost or unbranded liquor.
United Spirits’ managing director said inflation is squeezing the budgets of lower-income urban consumers, while softer monsoons and the continuing West Asia crisis are weighing on consumer confidence.
Premium spirits have proved more resilient, though their growth has also moderated.
United Spirits said its popular segment faced policy-related challenges in Maharashtra and Karnataka, while Allied Blenders and Distillers reported an 11.1% rise in volumes.
The market’s growth was stronger than the 3% recorded in the preceding quarter, but executives have not identified a clear cause for the slowdown in some states.
India’s spirits market grew 4.6% by volume year on year in the September quarter, down from 6.4% a year earlier.
Growth was weaker among mass-market spirits, which expanded 3.7%, compared with 5.7% for premium spirits.
Executives said inflation is squeezing lower-income consumers, while softer monsoons and the prolonged West Asia crisis are weighing on sentiment.
United Spirits said its prestige and above net sales value grew 6.3% in the quarter, down from 12.7% a year earlier.
- Who
- India’s spirits market, including companies such as United Spirits and Allied Blenders and Distillers.
- What
- Market growth slowed to 4.6% by volume year on year in the September quarter. Mass-market spirits grew more slowly than premium spirits.
- When
- The September quarter; the article was published on November 1, 2026.
- Where
- India.
- Why
- Executives cited inflation, softer monsoons and the prolonged West Asia crisis as factors weighing on consumer sentiment. Some said the slowdown was difficult to explain in certain states.
This story does not have two clearly opposing sides.
India’s spirits market grew 6.4% by volume in the September quarter.
Overall market growth was 3%.
The market grew 4.6% year on year, with premium spirits growing 5.7% and mass spirits 3.7%.
- Overall spirits growth
- 4.6% by volume year on year in the September quarter
- Mass-market spirits growth
- 3.7%
- Premium spirits growth
- 5.7%
- United Spirits prestige and above net sales growth
- 6.3%, down from 12.7% a year earlier
- Allied Blenders and Distillers volume increase
- 11.1% to 10 million cases
What people are saying
With the prolonged and continuing West Asia crisis, softer monsoons and inflation, consumer sentiment is not very upbeat
Rural may not have fully absorbed the impact of the weaker monsoon yet, but the bottom end of the urban consumer is feeling the inflationary pressure
It is difficult to pinpoint the reasons for the slowdown, even in states such as Uttar Pradesh which had recorded strong growth earlier.