Peg by peg, Vodka's share is rising in India

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• Radico khaitanvodka market IndiaRadico Khaitanwhisky competitionpremium spirits growthflavored vodkaliquor trends Indiaspirits market shareyounger consumers liquorvodka sales growth.
• Mumbai: Vodka is stealing a record slice of India's whisky-dominated liquor market, with younger consumers and women driving the sharpest shift ever toward white spirits.
• Vodka is capturing a record share of India's liquor market, driven by younger consumers and women.
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Nifty24, 175.6584.81. Gold (MCX) (Rs/10g.)156, 400.00-2596.0. The Economic Times daily newspaper is available online now. Peg by peg, Vodka's share is rising in India. ET BureauLast Updated: Aug 29, 2026, 07: 00: 00 PM IST.

Vodka is capturing a record share of India's liquor market, driven by younger consumers and women. This trend marks a major structural shift towards white spirits, especially vodka. Radico Khaitan's vodka business has seen substantial expansion over the past five years. The firm has additionally focused on premiumizing its whisky portfolio to adapt. This strategic move reduces dependence on lower-priced liquor and commodity selling. Listen to this article in summarized format. Unlock AI Briefing and Premium Content. New Year Offer 24 Hours Left. Subscribe Now Already a member? Sign In.

Mumbai: Vodka is stealing a record slice of India's whisky-dominated liquor market, with younger consumers and women driving the sharpest shift ever toward white spirits. The trend has given a fillip to the firm that had already premiumised its whisky portfolio. The vodka category's share has risen to 6.1% from 3.8% in 2025. It's a major structural shift which is happening towards the white spirits, especially vodka, Radico Khaitan MD Abhishek Khaitan remarked. Vodka's mixability is one factor, while flavours are helping bring new consumers into the category, he remarked in an exclusive interaction. That marks its biggest jump yet in India and, in a spirits market of regarding 400 million cases, a one-percentage-point shift represents roughly four million to five million cases.

Notably, the incremental volume from vodka's latest share gain is now bigger than the entire gin and tequila categories combined. The share gain has come largely at the expense of brown spirits – whisky, rum and brandy – the three largest categories that account for regarding 90% of the overall market. Khaitan, who remarked that until around 2016 he had considered selling Radico Khaitan concerning three times, spent years building its vodka business before the category's expansion became visible. "It's taken that time, " he remarked. "In the last five years, vodka as a category has grown by 20%." Live Events.

As well as the growing popularity of flavoured and more mixable spirits, he remarked, the change is being driven by younger consumers and women. States including Rajasthan and Uttar Pradesh are seeing vodka's share rise rapidly, with the category gaining ground from whisky, rum and brandy. Globally, vodka accounts for regarding 28% of the spirits market, leaving India with considerable headroom, Khaitan stated. The category has grown regarding 20% annually over the past five years, but the acceleration has become more visible as the base has expanded. Radico's flagship Magic Moments vodka sold 3.25 million cases in the June quarter, up 43% from a year earlier. The firm has concerning 60% of India's vodka market. Category's share rose to 6.1% from 3.8% in 2025, marking a shift towards white spirits, notes Radico Khaitan MD.

PREMIUM PUSH Radico's upmarket move has taken it into a part of the spirits industry once dominated by multinational brands. For instance, Radico's whiskies Virasat, aimed at the roughly ₹3, 000-₹4, 000 cost segment. It khaitan describes as "affordable luxury, " while Rampur ranges from concerning ₹8, 500 to as much as ₹5 lakh. The firm had been absent from the middle of that market as of limited malt capacity, he noted. Radico's premium portfolio gives it less exposure to fluctuations in grain and glass costs and reduces its dependence on state-level cost increases, Khaitan stated. It additionally reflects a deliberate decision taken years ago to move away from commodity selling. The shift toward premium products has additionally allowed Radico to reduce its dependence on lower-priced liquor. Its prestige & above contribution has risen to 52% of the portfolio from regarding 40-43% earlier. Nevertheless, the business will retain a regular-price portfolio only in states where it generates adequate margins, Khaitan noted. While lower-priced brands offer operating leverage since existing distribution, and manufacturing infrastructure can be utilised, their margins are lower than premium products. Add Now!

Taken together, the developments around peg by peg, Vodka' s share is rising in India point to a situation that is still moving, and the coming days should bring more clarity.