Who drinks the most in India? Contrary to common assumptions, it is not the most populous states but smaller, more literate and relatively affluent ones — a pattern particularly visible in southern India. The contrast is stark: about 24 crore people in Uttar Pradesh consumed roughly 2.5 crore cases of liquor, while nearly 8 crore people in Tamil Nadu consumed 6.47 crore cases
India’s market for Indian-Made Foreign Liquor (IMFL), which includes whisky, rum, vodka, brandy and gin, has developed into one of the largest spirits markets in the world. Consumption patterns across the country, however, remain highly uneven and are shaped largely by state-level taxation policies, retail structures and differences in income levels. The most recent consolidated industry estimates for the financial year ending March 2025 indicate that India consumed a little over forty crore cases of IMFL. While the market continues to expand, growth has moderated slightly in recent years as frequent changes in excise policies, election-related restrictions and periodic tax increases in several states have affected consumption trends.
One of the most striking features of India’s liquor consumption map is the dominance of the southern region. The states of Karnataka, Tamil Nadu, Telangana, Andhra Pradesh and Kerala together account for well over half of the country’s organised IMFL sales. Their combined consumption is estimated at roughly twenty-three crore cases annually, representing close to three-fifths of the national market, according to the latest consumption data compiled by Confederation of Indian Alcoholic Beverage Companies (CIABC). Large urban populations, relatively strong purchasing power and extensive state-regulated retail systems have helped these states maintain consistently high sales volumes.
Karnataka currently stands as the largest IMFL-consuming state in the country. Sales during the latest financial year are estimated at around 6.88 crore cases. The state’s consumption is driven by a rapidly expanding urban economy centred on Bengaluru and a well-developed retail network. Close behind is Tamil Nadu, where IMFL sales are estimated at about 6.47 crore cases annually. Tamil Nadu’s liquor market operates largely through the government-run TASMAC retail system, which ensures a highly organised distribution network and generates substantial excise revenue for the state government. Taken together, Karnataka and Tamil Nadu account for roughly one-third of India’s total IMFL consumption.
The next tier of major markets is formed by Telangana and Andhra Pradesh. Telangana recorded estimated consumption of around 3.71 crore cases, reflecting strong demand in urban centres such as Hyderabad and surrounding industrial districts. Andhra Pradesh follows closely with about 3.55 crore cases annually. Changes in liquor policy in recent years have reshaped retail structures in the state, but consumption volumes remain among the highest in the country.
Outside the southern region, Maharashtra represents the largest liquor market in western India. The state’s annual IMFL consumption is estimated at about 2.71 crore cases, driven primarily by the large metropolitan markets of Mumbai, Pune and Nagpur. In northern India, Uttar Pradesh has emerged as the largest IMFL market with consumption estimated at roughly 2.50 crore cases. Despite its massive population, per-capita alcohol consumption in Uttar Pradesh remains significantly lower than in southern states, suggesting considerable potential for future growth.
Kerala continues to feature among the major liquor-consuming states despite its relatively small population. Annual IMFL sales are estimated at about 2.29 crore cases, reflecting one of the highest per-capita consumption levels in the country. In eastern India, West Bengal leads the region’s liquor market with consumption of around 1.49 crore cases. Rajasthan and Delhi follow with approximately 1.37 crore and 1.18 crore cases respectively, reflecting steady demand in large urban centres and tourism-driven markets.
In value terms, India’s IMFL industry represents a massive consumer market. Depending on the mix of economy and premium brands, the average retail value of a nine-litre case of IMFL typically ranges between roughly Rs 4,500 and Rs 5,500. Using these estimates, the total value of India’s IMFL market is believed to exceed two lakh crore rupees annually. Because alcoholic beverages remain outside the Goods and Services Tax framework, this market is one of the largest sources of independent tax revenue for state governments.
Several structural factors explain the wide variation in consumption across states. Alcohol policy in India is determined entirely by individual state governments, which control licensing, taxation and retail distribution. In states where the government directly manages liquor retail through public corporations, sales volumes tend to remain relatively stable because supply chains are centrally organised. In contrast, states with stricter regulations or partial prohibition policies often experience lower reported consumption through formal retail channels.
Urbanisation and income growth are also reshaping demand patterns. Large metropolitan regions such as Bengaluru, Chennai, Hyderabad and Mumbai have become important centres for premium spirits consumption.
However, says a market research analyst with a multinational drinks company, "...gradual shifts in consumer preferences are pushing many drinkers away from traditional country liquor toward branded IMFL products, particularly whisky. This process of premiumisation has helped sustain the overall value growth of the liquor industry even in years when volume growth has slowed."
Overall, India’s liquor consumption landscape remains concentrated in a relatively small number of large states. Southern India continues to dominate the market, with Karnataka and Tamil Nadu forming the core of the country’s IMFL economy. As incomes rise and retail networks expand in other regions, particularly in northern and eastern India, the geographical distribution of consumption is likely to evolve gradually. Yet for the foreseeable future, the southern states will remain the primary engines of India’s organised liquor market.