Globally, the alcohol industry is going through a reset. Since June 2021, shares of the world’s top listed beer, wine and spirits brands have fallen by an average of 46 per cent, wiping nearly $830 billion (approx ₹7.95 lakh crore) off global alcohol stocks, according to a 2025 Bloomberg report. The consumption numbers also tell a similar story. An April 2026 report by International Wine and Spirits Record (IWSR), a global alcohol industry analytics and research company, shows total beverage alcohol volumes across 22 major markets fell 2% in 2025, marking a third consecutive year of decline.
Yet India bucked the trend, with alcohol volumes up 4% and sales value up 5%. According to IWSR’s July 2026 data, Gen Z alcohol participation has stabilised at 74% across 15 key markets, while India’s Gen Z participation climbed sharply from 60% in 2023 to 80% in 2026 among adults aged 21 and above in higher-income urban populations.
Jeet Rana, co-founder of cocktail bar Barbet & Pals Delhi, says new trends among younger consumers are driving the numbers. “I’m seeing a lot more interest in lighter, more refreshing and flavour-driven drinks such as highballs, spritzes, sours, tequila- and agave-based cocktails. They’re also much more curious about ingredients and the story behind a drink.” For Rana, that curiosity points to a larger change in drinking behaviour. “Drinking is becoming more intentional. It’s less about simply ordering ‘a strong drink’ and more about choosing something that fits the mood, the occasion and even how they want to feel the next day.”
What’s Gen Z doing differently?
Gen Z is drinking quite differently, says Nikhil Agarwal, founder of wine and spirits consultancy firm All Things Nice. He notes this trend is part of a broader demographic and economic shift, saying, “India’s young adult population has more money in their pockets, and they’re more aware regarding alco-bev brands than previous generations.”
{{/usCountry}}Gen Z is drinking quite differently, says Nikhil Agarwal, founder of wine and spirits consultancy firm All Things Nice. He notes this trend is part of a broader demographic and economic shift, saying, “India’s young adult population has more money in their pockets, and they’re more aware regarding alco-bev brands than previous generations.”
{{/usCountry}}He adds, “I don’t think Gen Z is drinking less at all; they are certainly drinking better. There is so much interest in the story behind the brand, the bartenders’ creative process, origins, and more. I see this curiosity steadily increasing.”
Made in India
India’s alcohol market is currently estimated at $208.3 billion (approx ₹19.95 lakh crore) in 2026 and is projected to reach $312.4 billion (approx ₹29.95 lakh crore) by 2036, according to Future Market Insights.
Indian single malt whisky sales in India reached an estimated 5 lakh cases in 2025, up around 22% year-on-year, with Indian manufacturers accounting for about 92% of the domestic Made-in-India single malt category, according to the Confederation of Indian Alcoholic Beverage Companies (CIABC). Homegrown spirits are also winning global recognition, with single malts leading the category. Maj Gen (Dr) Rajesh Chopra, Director General, Indian Malt Whisky Association (IMWA), says the ‘Made in India’ pride factor wasn’t really present a decade ago. “Choosing a domestic single malt today reads as a cultural choice as much as a beverage choice,” he adds.
Beyond whisky, Indian gins and other homegrown spirits are also making their mark at international competitions. Celebrities are also adding weight to the spirits industry. There’s D’YAVOL from Shah Rukh Khan and Aryan Khan, The Glenwalk from Sanjay Dutt, The GlenJourneys from Ajay Devgn, Rangeela from Ranveer Singh, Loca Loka from Rana Daggubati and Anirudh Ravichander, and Shelter 6 from Badshah.
The rise of low ABV cocktails
Moderation, lifestyle choices and health awareness are increasingly shaping drinking behaviour. That shift is less about giving up alcohol and more about changing how it fits into an occasion, says Diageo India’s chief marketing officer Ruchira Jaitly. She adds, “Gen Z is drinking in more varied ways — from cocktails and social occasions to switching between alcoholic and non-alcoholic drinks. This switch in one occasion is called ‘zebra striping’. This is an ‘and’ strategy, not an ‘either-or’ one, and it reshapes consumption to be more mindful and premium.”
This shift is also changing what bars put on their menus, with more moving beyond traditional mocktails to offer low-ABV (alcohol by volume) cocktails. Vasant Shetty, beverage head at Papi, a cocktail bar and restaurant in Mumbai, details, “We introduced low-ABV cocktails not as a replacement for alcohol, but as another way to participate in the bar experience. We don’t see them as an afterthought or simply a substitute for an alcoholic drink; they deserve the same attention and creativity as any cocktail on the menu.”
Vansh Pahuja of Together, a bar and vinyl listening room in Delhi, notes, “People may not necessarily want to abstain completely, but they also don’t want three or four full-strength cocktails.” His cocktails at Together combine spirits with a small measure of alcohol, offering an option for those who still want the ritual and a slight buzz.