In Uttar Pradesh, only 4% of liquor drinkers opt for premium brands that cost over Rs 1,000, according to a recent analysis. The majority of the market, about 96%, is made up of alcohol priced under Rs 1,000. Liquor bottles priced above Rs 2,000 make up an even smaller portion, just 0.62% of the market share.
Among the different price ranges, the most popular liquor bottles are those priced between Rs 501 and Rs 1,000, which account for 71% of sales. Liquor under Rs 500 is also popular, making up 25% of the market share. The demand for premium liquor is highest in western UP, especially in cities like Agra, which has the most luxury hotels in the state, followed by Lucknow and Jhansi.
In more economically backward areas, such as Banda and Azamgarh, the preference shifts. In Banda, just 1% of buyers go for liquor over Rs 1,000, with 73% purchasing alcohol in the Rs 501 to Rs 1,000 range. In Azamgarh, 78% of sales come from bottles priced under Rs 500.
Uttar Pradesh offers around 970 different hard liquor brands, including imports, with 217 brands in the Rs 501 to Rs 1,000 range. Only 11 brands cater to those looking for cheaper options under Rs 500.
Despite these trends, the state’s excise revenue has grown significantly, with a 12% increase in excise duty collections for the first seven months of the 2024-25 fiscal year. Experts note that while the majority of liquor demand in India generally falls within the Rs 500 price range, in Uttar Pradesh, rural areas tend to favor locally made alcohol over branded products.
