Premium Alcohol Demand Surges in India's Hindi Belt, Outpacing Metro Markets

India's Premium Liquor Market Shifts North

India's leading liquor companies are increasingly targeting the Hindi heartland as the next major driver of premium alcohol consumption. Rising incomes, changing lifestyles, and supportive state policies are reportedly encouraging consumers in northern and central India to trade up from mass-market liquor to premium spirits.

The shift reflects changing aspirations among consumers in smaller cities and emerging urban centres. States such as Uttar Pradesh, Rajasthan, Haryana, Jharkhand, Chhattisgarh, and Bihar are witnessing growing demand for premium whiskies, craft gins, luxury vodkas, imported spirits, and Indian single malts.

Industry executives point to higher disposable incomes, greater exposure through social media, and evolving lifestyle preferences as drivers of the trend. According to Sanjit Padhi, chief executive officer of the International Spirits and Wines Association of India (ISWAI), premiumisation benefits state governments by generating higher excise revenues.

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Policy reforms in several states have gained momentum with the trend. Uttar Pradesh has introduced measures to attract investment and position itself as a liquor manufacturing and export hub. Haryana has expanded premium retail formats, while Rajasthan has modernised licensing norms and premium outlet models.

Industry leaders say premiumisation is no longer confined to whisky. Consumers are experimenting much more now, even in Tier-II towns. Cocktail culture is spreading rapidly to cities such as Lucknow, Kanpur, Jaipur, and Chandigarh.

Companies are responding by expanding their premium portfolios. Radico Khaitan said premium brands now contribute over 70% of its Indian-made foreign liquor sales value. Its prestige-and-above segment recorded 28.5% volume growth and 30.9% net sales growth in FY26.

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Craft spirits maker Nao Spirits & Beverages expects Hindi heartland markets to contribute nearly 20% of its revenue within two years. Meanwhile, premium beer sales in Uttar Pradesh, Odisha, and Jharkhand have risen by 8-10% over the past year, highlighting the growing appetite for premium alcoholic beverages across India's emerging consumption centres.