New Delhi: India’s alcohol industry has witnessed a major shift in consumer spending patterns, with the country’s expenditure on alcoholic beverages reportedly surpassing spending on jewellery, according to insights shared by G Maran, co-founder and executive director of Unifi Capital. The findings highlight changing lifestyle choices, rising discretionary spending and regional differences in consumption trends across the country.
According to Maran, India’s alcohol market has grown to a level where annual consumer spending on liquor has exceeded the jewellery market, which has traditionally been one of the country’s largest discretionary spending categories. The jewellery industry, valued at more than $60 billion, has long held cultural and economic importance in India, particularly due to gold purchases during weddings, festivals and important family occasions.
However, recent consumption patterns suggest that alcohol has emerged as a significant contributor to India’s consumer economy.
South India emerges as the biggest alcohol market
One of the most notable aspects of the data shared by Unifi Capital is the dominance of South Indian states in alcohol consumption by value.
The five southern states of India, which together account for around 18% of the country’s population, reportedly consume nearly as much liquor by value as the remaining states combined.
“In 2025, Indians spent more on alcohol than on jewellery. Jewellery market was $60 billion, and the alcohol industry surpassed that. Interestingly, South Indian states have 18% of India’s population, but they consumed as much alcohol, in value terms, as the rest of India,” Maran said during a podcast hosted by Kushal Lodha.
He further explained that the South Indian alcohol market is comparable in size to the combined markets of North, West and East India.
The trend challenges the common perception that alcohol consumption is concentrated mainly in northern or urban regions. Instead, the data indicates that southern states have become key contributors to the country’s liquor market.
Changing consumer preferences in India
India’s consumption economy has undergone significant changes over the past decade. Increasing urbanisation, higher disposable incomes and changing social habits have contributed to a rise in spending on entertainment and lifestyle products.
While jewellery has traditionally represented wealth preservation and social status, particularly through gold ownership, alcohol spending reflects a shift towards experience-based consumption.
Younger consumers in urban areas are increasingly spending on leisure activities, dining experiences and social occasions. This broader change in consumer behaviour has helped sectors such as hospitality, entertainment and beverages expand rapidly.
The growth of alcohol consumption also highlights the importance of state-level policies, as liquor sales contribute significantly to government revenues through excise duties.
Alcohol industry’s economic importance
The alcohol sector remains one of the major sources of revenue for several state governments. Excise collections from liquor sales contribute thousands of crore rupees annually to state budgets, helping fund public programmes and infrastructure initiatives.
Southern states have historically maintained strong liquor markets due to a combination of population size, urbanisation levels and established distribution networks.
States such as Tamil Nadu, Karnataka, Telangana, Andhra Pradesh and Kerala have significant beverage markets, although regulations, taxation structures and consumption patterns vary widely between them.
The growing economic importance of the sector has also led to increased attention from investors and businesses looking at India’s consumer market opportunities.
Tamil Nadu’s rise in medical tourism
Apart from discussing alcohol consumption trends, Maran also highlighted Tamil Nadu’s growing importance as a medical tourism destination.
According to him, the state has emerged as one of India’s leading tourism hubs over the past four to five years, largely due to growth in healthcare-related travel.
Tamil Nadu has developed a strong healthcare ecosystem with advanced hospitals, specialised medical facilities and relatively affordable treatment options compared with several international destinations.
Medical tourism has attracted patients from across India and abroad, contributing to the state’s tourism growth and service economy.
The state’s progress in healthcare, along with its cultural attractions and infrastructure development, has helped strengthen its position as an important destination for domestic and international visitors.
What the spending shift indicates
The rise in alcohol expenditure compared with jewellery spending reflects a broader transformation in India’s consumption landscape. Traditional purchases linked to savings and social customs are increasingly competing with lifestyle-oriented spending categories.
However, the trend does not mean jewellery has lost its importance. Gold and ornaments continue to remain deeply connected with Indian traditions, investments and family wealth.
Instead, the data suggests that Indian consumers are expanding their spending choices, allocating more money towards leisure and lifestyle experiences alongside traditional assets.
The growing alcohol market, particularly in South India, provides insight into changing economic behaviour and evolving social patterns. As incomes rise and consumer preferences continue to shift, sectors linked to recreation and personal experiences are expected to play a larger role in India’s economy.
Conclusion
The reported rise of alcohol spending above jewellery purchases marks a significant change in India’s consumer market. With South Indian states emerging as the biggest contributors by value, the trend reflects changing lifestyles, economic growth and new patterns of discretionary spending.
While traditional sectors like jewellery remain culturally important, the expanding beverage industry demonstrates how India’s consumption habits are evolving with changing times.
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