Premiumisation Tailwind: UNITDSPR, RADICO Ride India's Craft Boom

A consumer behaviour report highlights that young Indians are trading up to premium and craft alcohol rather than cutting consumption. The shift favours quality, cocktails and experiential drinking over volume — a structural mix change in India's alco-bev market.

India is among the world's fastest-growing alcohol markets and premiumisation is the single biggest margin lever for listed players. Higher ASPs and richer mix support gross margin expansion even when volume growth moderates, making revenue quality more durable.

Positive for premium-heavy names like UNITDSPR (Diageo's P&A portfolio), RADICO (Magic Moments, Rampur, Jaisalmer) and UBL (Kingfisher Ultra, Heineken Silver). Mass-market/IMIL-tilted names like GLOBUSSPR benefit less directly. Cocktail/HoReCa adjacencies indirectly help glass and bottling suppliers.

Watch Q1FY27 commentary on Prestige & Above (P&A) mix, premium beer growth, and state-level excise/pricing approvals. Risk events: any new excise hikes in key states (Karnataka, Maharashtra, Telangana) and rural demand softness that could cap mass-segment volumes.

• •Young Indians shifting to premium/superior quality alcohol rather than reducing consumption
• •Rising preference for crafted cocktails and experiential drinking over volume
• •Structural premiumisation reshaping India's alco-bev sector