Gen Z drives India's alcobev premiumisation as boomers moderate, survey finds

Urban Gen Z alcohol participation hit 80% in Mar 2026, up from 70% a year earlier and 60% in 2023, per an IWSR survey of 2,545 adults across 11 cities. Indian whisky (57%) and blended Scotch (43%) both gained share, lifting United Spirits, Allied Blenders and Tilaknagar even into Tier II/III markets.

— Source publishedTue, 14 Jul, 2026, 08:28 IST·First seen Tue, 14 Jul, 2026, 10:21 IST·Source ET Retail

What happened

United Spirits · Urban Indian Gen Z alcohol consumption is surging (80% participation), driving premiumisation across spirits in India even into Tier II/III

Key facts

  • Gen Z drinkers 80% in Mar 2026 vs 70% year earlier, 60% in 2023
  • urban affluent participation 77% vs 67%
  • 60% last drank at bar/club/restaurant
  • 32% drank at home
  • Indian whisky 57% vs 53%
  • blended Scotch 43% vs 38%
  • 2,545 adults surveyed across 11 cities

Why this matters

Accelerating Gen Z premiumisation and Tier II/III expansion make premium whisky and Scotch brands attractive acquisition or partnership targets to lock in shelf space ahead of further consolidation.

What to watch

  • State excise duty revisions or advertising restrictions on alcohol
  • Quarterly volume/value mix disclosures from USL, ABD, Tilaknagar
  • IWSR/Nielsen follow-up participation and category-share data
  • Entry of global RTD/seltzer players or new low-no launches in India
  • Input cost (ENA, glass, Scotch import) and pricing pass-through signals
  • United Spirits and Allied Blenders accelerate Tier II/III distribution and premium SKU launches targeting urban Gen Z
  • Brands ramp digital/experiential marketing (events, on-trade activations) skewed to 21-27 demographic
  • Tilaknagar leverages brandy/whisky momentum to push price-point upgrades and regional expansion
  • Portfolio hedging into RTD, flavoured and low/no-alcohol lines to pre-empt format shift
  • Distributors and modern trade expand premium shelf allocation in metros and emerging cities