Emerging Innovations and Consumer Preferences Driving the Alco- Bev Industry in India in 2025

By Amit Roy Restaurateur and a Partner at Shilton Hospitality

The alco-bev industry in India is changing rapidly, shaped by evolving consumer preferences and a growing demand for unique and healthier options. Once dominated by big international brands and standard choices, the market is now shifting towards boutique options, craft spirits, and innovative experiences that cater to a younger and more conscious audience.

For instance, bangalore city an ever evolving market, known for its vibrant social scene, has embraced the rise of boutique alcohol brands and innovative drinking experiences. From craft gins and fresh beers to zero-alcohol cocktails, Bangalore’s bars and breweries are becoming hubs of experimentation and creativity. Venues like Practically SoBar, Indian Craft Brewery ICB or Kebapci showcases the growing demand for healthier alternatives, offering zero-alcohol beverages or even non alcoholic beer, crafted with the same care and complexity as traditional cocktails. The city’s dynamic culture and openness to new trends make it a microcosm of India’s shifting alco-bev landscape.

Boutique alcohol brands are making a strong impact across the country, with craft gins, whiskeys, and other spirits gaining popularity for their quality and distinct flavors. These brands are inspired by regional ingredients and local stories, offering a refreshing alternative to the usual imports. Cities like Goa and Gurgaon have also emerged as creative hubs for craft spirit production, which showcase how these products can thrive in dynamic urban markets as well. For example, boutique bars in these cities are celebrating Indian craft liquors, giving consumers exciting new experiences.

Healthier drinking options are another major trend reshaping the market. Consumers are increasingly mindful of their choices, seeking beverages that align with their wellness goals. Zero-alcohol drinks are gaining traction, allowing people to enjoy the social aspect of drinking without the after-effects.

Cocktail culture is also booming, with mixologists leading the charge. Across India, boutique bars are collaborating with craft brands to create unique and visually stunning cocktails. These establishments often host exclusive events and pop-ups, adding an experiential element to their offerings. The demand for personalized, curated experiences has led to a surge in smaller, intimate venues that focus on quality and creativity over scale.

Collaboration has become a key driver of growth, with bars, breweries, and boutique liquor brands teaming up to create limited-edition offerings and exclusive menus. This approach not only keeps the audience engaged but also helps these brands stand out in a crowded market. Events like pop-ups and themed nights are becoming increasingly popular, turning regular drinking spots into destinations for discovery and innovation.

The international spotlight is also on India, with global brands looking to enter the market. Rumors of a leading Japanese liquor company launching its premium gins and whiskeys in India reflect the country’s growing appeal. Such developments are expected to add further diversity to the alco-bev landscape, giving consumers more choices than ever.

Fresh beers and craft breweries are thriving as well, reflecting the Indian market’s growing appetite for unique and localized experiences. Cities with a vibrant drinking culture, such as Bangalore, have become testbeds for experimental brews and styles, which are attracting both enthusiasts and casual drinkers alike.

A report by Infomerics Ratings stated that the sales of alcoholic beverages (Alco-Bev) in the nation are likely to rise by 7 per cent compound annual growth rate (CAGR) in the next ten years. This growth is driven by rising disposable incomes, a shift towards premium and craft beverages, and an increasing focus on health-conscious options.

The alco-bev industry in India is undergoing a dynamic transformation. Whether it’s through boutique spirits, zero alcohol beverages, innovative cocktails, or exciting collaborations, brands are finding new ways to engage with a generation that values creativity, quality, and mindful indulgence. With these trends taking center stage, the industry is poised for vibrant growth and innovation in 2025 and beyond.

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