Lucknow | July 16, 2025
Uttar Pradesh is seeing a major shift in drinking preferences, with more people opting for premium liquor. A recent report by the International Spirits and Wines Association of India (ISWAI) reveals that demand for imported premium liquor in the state has grown at a strong 32% annually between 2019 and 2024.
In comparison, the economy and mid-range liquor segments saw much slower growth—just 4% and 7% respectively over the same period.
Despite this trend toward premiumisation, country liquor still dominates the market, holding 65% of total consumption. Beer makes up 19%, while Indian Made Foreign Liquor (IMFL) accounts for 16%.
Nationally, India ranks as the fourth-largest alcohol market in the world, behind China, the U.S., and Japan. The total value of India’s alcohol industry is estimated at ₹4.97 lakh crore, with Uttar Pradesh contributing ₹56,000 crore in FY 2023-24. The state earned ₹45,570 crore in excise revenue during the same period.
The ISWAI report, released during the Excise Investors Summit held in Lucknow on July 9, highlights growing demand for high-quality alcohol in UP’s cities—indicating both rising incomes and changing lifestyles.
Excise Commissioner Adarsh Singh said, “The liquor industry is now playing a significant role in UP’s economy, thanks to its links with agriculture, manufacturing, retail, tourism, and hospitality.”
Parvinder Singh, ISWAI’s Regional Director, added, “Consumers in UP are increasingly choosing better-quality and premium liquor. There’s still huge potential for growth in this segment, which could also boost the state’s revenue.”
According to the report, the sale of spirits (whisky, rum, vodka, gin, and brandy) rose from 23,177 crates in FY 2022-23 to 24,030 crates in FY 2023-24. (Each crate contains 12 bottles of 750 ml each.)
In terms of excise revenue:
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Country liquor contributes 52%
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IMFL brings in 34%
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Beer generates 14%
This shift marks a significant moment for the alcohol industry in the state as premiumisation gains momentum.
