Why India’s alco bev industry bet up to 20% growth in the festive quarter

The last quarter of the year, spanning Diwali, the wedding season, Christmas and New Year, packs in more moments of hosting, gifting and socialising than any other. For the alco bev industry, that typically translates into a spike in consumption. Industry trackers and trade bodies forecasted a roughly 10% to 20% increase in volumes during the October to December quarter, with premium segments expected to drive a disproportionate share of the growth.

India’s alco bev category has been on a steady rise throughout the year, especially in premium segments. The season acts as a catalyst, adding emotion, tradition and urgency into the mix.

How festive marketing drives the surge

Marketing during festivals works differently in alco bev. As a media dark industry, the real work happens in the details. Digital storytelling, tactically placed activations and being present exactly where and when the consumer is planning their celebrations play a central role.

Digital first, performance focused choices

Digital now accounts for the largest share of India’s advertising market and is growing faster than other channels. In a category where direct advertising is restricted, digital has moved from being a supporting channel to the backbone of festive marketing. Social media, influencers and age gated content offer space for brand narratives to play out while staying within compliance.

Short videos, cocktail reels and creator partnerships allow brands to speak in a relatable voice, and more importantly, during the hours when people are deciding what to serve or gift. Digital also allows performance to be tracked in real time, helping marketers optimise as the season unfolds. Small tweaks can boost visibility and drive trial, especially among shoppers looking to experiment or trade up during festive gatherings.

On ground activations where they matter

If digital sets the pace, on ground activations close the deal. Retail displays, pop ups, tasting tables, restaurant tie ups and curated experiences at music or food festivals all play a decisive role in driving the final purchase.

These activations are especially powerful during the festive rush because consumers are already in a discovery mindset. They are ready to spend a little extra, try something they have seen online or pick up a special format pack for a gathering. A well executed in store moment, a display that sparks curiosity or a tasting guided by a trained representative can often be more effective than a large scale mass media campaign.

Compliance is non negotiable

Over the past couple of years, regulations have tightened, which has benefited the industry in several ways. Marketers are now sharper about what they can and cannot do. Festival planning begins months in advance, with every element from content to event scripts routed through legal checks.

Compliance does not mean compromise. Instead, it pushes creativity. Brands are telling richer stories through packaging, investing in digital first content and partnering with cultural properties so they belong to the moment rather than dominate it.

What is changing beyond the metros: Tier II and Tier III cities

One reason the 10% to 20% uplift looks achievable is the changing geography of demand. Trade and market analyses from 2024 to 2025 point to Tier II and Tier III towns emerging as key growth engines, with rising disposable incomes and aspirations driving premium trade ups. As distribution improves and modern retail expands, gifting and celebration packs are finding buyers beyond the metros.

It is now common to see gifting packs, premium beers and craft focused launches in Tier II stores. For brands, this means creating content and activations that resonate with a wider audience. Not just English first or metro first campaigns, but storytelling that reflects local tastes and languages.

Travel retail is adding its own festive momentum. With travel back in full swing, duty free purchases during Diwali and Christmas have risen, particularly in premium spirits. This further strengthens the top end of the consumption pyramid.

What 2026 will take from this festive season

Festive marketing acts as a stress test. It highlights what works and what does not. The learnings from this year are likely to shape alco bev marketing strategies in 2026.

Here is what looks certain.

Premium will lead the way. IWSR’s first half 2025 data shows premium and above price tiers outperforming the broader market. This is reflected in festive baskets and party occasions, where consumers are choosing better rather than more. Gift worthy packs, craft led offerings and well designed experiences will command greater focus.

Tier II and Tier III cities are now core markets. They are no longer a future opportunity. They are active, purchasing and influencing national trends.

Digital will get smarter. The move towards digital first strategies is driven by outcomes rather than fashion. It delivers faster results and gives marketers room to experiment within defined limits.

Measurement will matter more than ever. Festive buying decisions move quickly, making results easier to track. The compressed festive quarter allows brands to clearly see what drove impact and what did not.

The coming months are well set up for the alco bev industry. A blend of tradition, premium aspiration, online discovery and wider geographic reach is shaping what could be one of its strongest festive seasons yet. The real question is not whether the momentum will carry into next year, but how much of it brands are prepared to build on.

The guest author is Tushar Bhandari, whole time director at Associated Alcohols & Breweries. 

Photo by CHUTTERSNAP on Unsplash