- Indians now spend more on alcohol than jewellery, a shift from tradition
- South India accounts for 50% of India's total alcohol sales by value
- South India’s alcohol market equals that of North, West, and East combined
In a surprising shift in consumer spending habits, Indians are now spending more money on alcohol than on jewellery, according to recent insights shared by the co-founder of Unifi Capital in a podcast hosted by Kushal Lodha. The data highlights a notable change in a country that has traditionally been known for its immense cultural and financial affinity for gold and precious ornaments.
According to G Maran, co-founder and executive director at Unifi Capital, Indians are now spending more on alcohol than on jewellery - a market traditionally valued at over $60 billion. Interestingly, the consumption is not evenly distributed across the nation. The findings reveal that South India is the primary driver of this booming market, accounting for a staggering 50% of the country's total alcohol sales by value.
"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. So, the South Indian alcohol market is as big as the entire North + West + East combined, but that's not the perception people carry,'' said G. Maran of Unifi Capital.
This pivot in expenditure sheds light on evolving lifestyle choices and discretionary spending patterns among modern Indian consumers. While jewellery has long been viewed as a safe investment and a cultural staple for weddings and festivals, the rising expenditure on alcohol points to a growing trend toward recreational, social, and experiential spending.
The observations from Unifi Capital emphasize the sheer scale of the beverage industry's economic footprint, particularly in the southern states where it serves as a massive contributor to state excise revenues. As alcohol consumption continues to outpace traditional luxury purchases like jewellery, it reflects broader demographic shifts, rising disposable incomes, urbanization, and changing social norms across India.
Beyond the trends in alcohol expenditure, Maran underscored Tamil Nadu's recent emergence as a primary destination for medical tourism in India. He remarked, "Over the last four to five years, Tamil Nadu has become one of the country's foremost tourism hubs, a growth driven significantly by medical tourism." According to Maran, healthcare-driven travel has propelled the state to become one of India's leading tourist destinations.
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