Alcohol stocks up 25–30% as industry expects festive boom fueled by GST savings
Liquor retailers and companies across India are preparing for what could be a record-breaking Diwali season. Stocks of whisky, rum, vodka, and gin have surged by nearly 25–30% compared to last year, as the alco-bev industry anticipates higher demand driven by positive consumer sentiment and savings from recent GST reforms.
“Orders are pouring in, and we’ve stocked about 10 days’ worth of inventory at retail shelves compared to the usual two weeks, to ensure smooth availability,” said Amar Sinha, COO of Radico Khaitan, makers of Magic Moments vodka, 8PM whisky, and Jaisalmer Indian Craft Gin. “There’s strong buoyancy in the market, and we expect this trend to continue through the festive quarter.”
Festive Push and GST Boost
Industry executives say tax savings under the revised GST structure have boosted margins, allowing for aggressive promotions and improved supply chains. Liquor companies are working closely with distributors to ensure shelves are well-stocked during the high-demand festive period.
Strong Market Momentum
According to data from the International Spirits and Wines Association of India (ISWAI), domestic sales of branded spirits touched 408 million cases in 2024, growing 6% in the June quarter, a sharp recovery after several slow quarters caused by policy disruptions and reduced consumer spending.
From 2019 to 2024, the overall industry grew at a compound annual growth rate (CAGR) of 3.4%, while the premium segment grew in double digits, with its market share rising from 42% to over 50%.
Premiumization on the Rise
“The evolving urban lifestyle and gifting culture have set the stage for premiumization,” said Diego Bianchi, Vice President, Global Hubs at Sazerac, makers of Weller, Benchmark Bourbon, Buffalo Trace, and Sazerac Rye. He added that Sazerac is launching new festive gift packs in Maharashtra, Goa, and Haryana from mid-October.
Last year, in just the fortnight leading up to Diwali, Delhi NCR alone sold around 3 million bottles, generating massive revenues for state and retail outlets.
Bacardi and Beer Makers Expect Double-Digit Growth
“The festive season is key for the spirits category—it contributes nearly a third of annual sales,” said Vinay Golikeri, Managing Director, Bacardi India. “We’re seeing strong double-digit growth this season, driven by gifting and premium experiences.”
Beer manufacturers, too, are optimistic despite beer being traditionally viewed as a summer drink. “During last year’s festive season, we crossed 1 million cases, proving that beer demand remains strong during celebrations,” said Avneet Singh, Founder & CEO of Medusa Beverages.
Industry Outlook
Industry experts believe that higher disposable incomes, a young consumer base, and increased spending on celebrations will continue to fuel India’s liquor market. “The recent GST reduction and rising consumer confidence are expected to accelerate premiumization in the alco-bev sector,” said Sanjit Padhi, CEO of ISWAI.
With shelves stocked, spirits high, and festive cheer in the air — India’s liquor industry is ready to raise a toast to record Diwali sales this year.
