The millennial and Gen Z bulge of India’s democratic dividend is tipping the tipplers scale with a marked preference for no alcohol or low alcohol spirit flavoured beverages with their health and moderate consumption priorities trumping the quick high, market researchers and companies found.
A latest NielsenIQ study shared exclusively with ET shows 24% of Indian consumers surveyed drink no or low alcohol alternatives compared to the global average of 17%. Of this 24%, over half are Gen Z and millennials. India is the second-largest market for such virgin beverages in the Asia-Pacific region, after the Philippines.
The study also divides the country's alcohol consumption trend. It shows that almost 54% of consumers in the north love alcohol followed by 50% in the east, 43% in west and 37% in south. The rest either have a love-hate relationship or completely avoid alcohol.
Chief marketing officer Vikram Bahl of India's largest brewery, United Breweries, said there was a growing demand from health-conscious millennials, professionals and urban consumers who value moderation and inclusivity. In its latest annual report, the company said it is innovating to meet this demand in metros without compromising the traditional beer experience.
Ruchira Jaitley, chief marketing officer of Diageo India, said Gen Z is not drinking less but following the Zebra striping trend where every alcoholic drink is followed by a non-alcoholic one. “And they are drinking more cocktails, and premium. So, value wise they are not drinking less yet,” she said.
A Metro Phenomenon
She, however, said the company is watching this space and has invested in Sober, a non-alcoholic spirits brand. It holds 15% in Sober’s parent company, V9 Beverages.
The NielsenIQ study shows 53% of no/low drinkers are of legal drinking age in India, the prime age being 34 years. The sober curious movement championed by Gen Z has 35% of the consumers in the 35-54 age bracket and 13% are 55-plus years old.
Aditya Agarwal, founder of Sober, says the fastest-moving category is non-alcoholic whiskey though they sell gin, rum and vodka. No surprises here, considering whiskey is the largest consumed alcoholic beverage in India accounting for almost two-thirds of total market.
Social commentator Santosh Desai says it’s a seductive idea — marrying the whole idea of alcohol and the buzz, pleasure, social lubrication it gives, along with the fact that it's actually not alcohol, and does not harm. To be sure, the non-alcoholic drink market is still not as big as it’s more a metro phenomenon. The total alcobev market size of India is estimated to be $42 billion for 2025.
Ishan Arora, founder of zero alcoholic beverage startup Catwalk Botanicals, estimates the market size of non-alcoholic drinks to be a fraction of the premium alcobev market, which in itself is 8-9% of the total.
Shashwat Goenka, vice chairman of RP-Sanjiv Goenka Group which runs the Spencer's Retail chain that also sells alcohol, said in a recent social media post that drinking alcohol is no longer the social currency and while millennials drank to fit in, Gen Z drinks to stand out or doesn’t drink at all.
Bars in Goa, Bengaluru, Pune, Mumbai and Delhi-NCR are lining up a bevy of virgin cocktails, thanks to these companies. The days when the non-alcoholic options used to be at the back of the menu, being sad and with limited options including colas, fresh lime soda, or a Virgin Mojito, at best are finally gone.
A latest NielsenIQ study shared exclusively with ET shows 24% of Indian consumers surveyed drink no or low alcohol alternatives compared to the global average of 17%. Of this 24%, over half are Gen Z and millennials. India is the second-largest market for such virgin beverages in the Asia-Pacific region, after the Philippines.
The study also divides the country's alcohol consumption trend. It shows that almost 54% of consumers in the north love alcohol followed by 50% in the east, 43% in west and 37% in south. The rest either have a love-hate relationship or completely avoid alcohol.
Chief marketing officer Vikram Bahl of India's largest brewery, United Breweries, said there was a growing demand from health-conscious millennials, professionals and urban consumers who value moderation and inclusivity. In its latest annual report, the company said it is innovating to meet this demand in metros without compromising the traditional beer experience.
Ruchira Jaitley, chief marketing officer of Diageo India, said Gen Z is not drinking less but following the Zebra striping trend where every alcoholic drink is followed by a non-alcoholic one. “And they are drinking more cocktails, and premium. So, value wise they are not drinking less yet,” she said.
A Metro Phenomenon
She, however, said the company is watching this space and has invested in Sober, a non-alcoholic spirits brand. It holds 15% in Sober’s parent company, V9 Beverages.
The NielsenIQ study shows 53% of no/low drinkers are of legal drinking age in India, the prime age being 34 years. The sober curious movement championed by Gen Z has 35% of the consumers in the 35-54 age bracket and 13% are 55-plus years old.
Aditya Agarwal, founder of Sober, says the fastest-moving category is non-alcoholic whiskey though they sell gin, rum and vodka. No surprises here, considering whiskey is the largest consumed alcoholic beverage in India accounting for almost two-thirds of total market.
Social commentator Santosh Desai says it’s a seductive idea — marrying the whole idea of alcohol and the buzz, pleasure, social lubrication it gives, along with the fact that it's actually not alcohol, and does not harm. To be sure, the non-alcoholic drink market is still not as big as it’s more a metro phenomenon. The total alcobev market size of India is estimated to be $42 billion for 2025.
Ishan Arora, founder of zero alcoholic beverage startup Catwalk Botanicals, estimates the market size of non-alcoholic drinks to be a fraction of the premium alcobev market, which in itself is 8-9% of the total.
Shashwat Goenka, vice chairman of RP-Sanjiv Goenka Group which runs the Spencer's Retail chain that also sells alcohol, said in a recent social media post that drinking alcohol is no longer the social currency and while millennials drank to fit in, Gen Z drinks to stand out or doesn’t drink at all.
Bars in Goa, Bengaluru, Pune, Mumbai and Delhi-NCR are lining up a bevy of virgin cocktails, thanks to these companies. The days when the non-alcoholic options used to be at the back of the menu, being sad and with limited options including colas, fresh lime soda, or a Virgin Mojito, at best are finally gone.
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