Gen Z is drinking less alcohol, but that does not mean the generation has walked away from the liquor market. In India, a growing preference for premium spirits, flavoured drinks and more experience-led consumption is creating a different kind of opportunity for alcohol companies.
The shift helps explain why liquor stocks such as Radico Khaitan, United Spirits and United Breweries continue to attract attention despite changing drinking habits among younger consumers.
Gen Z is drinking less, but not quitting alcohol
As per a NDTV report, George F Koob of the National Institute on Alcohol Abuse and Alcoholism says younger generations increasingly view alcohol as a health risk and are more likely to take breaks from drinking.
Social habits have changed too. Time spent with friends in person fell from 30 hours a month in 2003 to just 10 hours in 2020.
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A similar pattern is visible among young urban consumers in India. Surveys in Mumbai and Pune found health concerns, mental health awareness, financial pressures and social media influence among the factors encouraging more mindful drinking. Nearly half had tried a dry month, while most said they combine alcoholic and non-alcoholic drinks during an evening.
Premium alcohol is driving growth
The bigger change is in what Gen Z chooses when it does drink.
Radico Khaitan reported a 73 per cent rise in quarterly profit, helped by demand for premium brands such as Rampur whisky. Its “Prestige & Above” segment grew 40.8 per cent.
United Spirits also reported stronger premium sales. Its premium portfolio, including Johnnie Walker and Tanqueray, recorded 9 per cent year-on-year growth in net sales value.
India’s alcohol market recorded 7 per cent volume growth in the first half of 2025, crossing 440 million cases. The premium-and-above category grew 8 per cent in both volume and value.
Gen Z wants more than just a drink
According to a NDTV report, Anant S Iyer, Director General of the Confederation of Indian Alcoholic Beverage Companies (CIABC), said, “Premiumisation continues to be one of the key growth drivers for India’s alcobev industry.”
He also said that Indian single malts grew “by around 22 per cent in 2025 to nearly five lakh cases,” with homegrown labels accounting for roughly 92 per cent of the segment. Gen Z, he added, is “moving across categories, exploring new flavours, formats and cocktails and choosing drinks according to the occasion rather than habit.”
Varun Jain, Founder & CEO of Smoke Lab, said that Gen Z’s “purchase journey” is increasingly influenced by “digital discovery, social influence and curiosity around a product’s provenance, flavours and overall experience.”
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Rupi Chinoy of South Seas Distilleries explained NDTV that younger consumers seek spirits with “a strong sense of originality and place.” He added, “The new definition of luxury in spirits lies not merely in price or prestige, but in provenance, originality and the richness of the story behind every pour.”
The real Gen Z alcohol trend
The picture is therefore more nuanced. Gen Z may be drinking less frequently, but a section of younger Indian consumers is willing to spend more when they do drink.
For liquor companies, that means fewer occasions can still translate into higher-value purchases. Premium spirits, flavoured vodka, craft cocktails and products with a distinctive story are increasingly becoming part of that shift.
