Peg by peg, Vodka's share is rising in India

Vodka is gaining significant ground in India's whisky-dominated liquor market, driven by younger consumers and women, as well as the appeal of flavoured and more mixable spirits. Radico Khaitan, a leading Indian liquor company, has witnessed its vodka category's share rise to 6.1% from 3.8% in 2025, marking the biggest increase in the spirits market. The shift has been predominantly at the expense of brown spirits, such as whisky, rum, and brandy, which make up about 90% of the overall market.

Abhishek Khaitan, Radico Khaitan's MD, attributes the growth to Vodka's mixability and the introduction of new flavors that attract a broader range of consumers. The category has expanded by 20% over the past five years, with the rate of growth accelerating as the base has expanded. Radico's flagship Magic Moments vodka sold 3.25 million cases in the June quarter, a 43% increase from the previous year, accounting for 60% of the company's vodka market share.

Radico Khaitan's premiumization strategy has shifted its focus to high-value products, such as its whisky Virasat and Rampur ranges, which cater to a price segment between ₹3,000-₹4,000 and ₹8,500-₹5 lakh, respectively. This move has reduced the company's exposure to fluctuations in grain and glass costs, and lessened its dependence on state-level price increases.

The premium portfolio has allowed Radico Khaitan to maintain a 52% contribution to its overall portfolio, up from 40-43% earlier. However, the company plans to retain a regular-price portfolio only in states where it generates adequate margins.