India Spends More On Alcohol Than Jewellery, South Dominates Consumption

India has spent more on alcohol than jewellery in 2025, reflecting a notable shift in consumer spending patterns.

Unifi Capital co-founder and executive director G Maran, during a podcast hosted by Kushal Lodha, said that the country's alcohol industry has grown larger than the jewellery market, which he valued at around $60 billion.

"In 2025, Indians spent more on alcohol than on jewellery. Jewellery market was $60 billion, and the alcohol industry surpassed that," he said.

Maran also highlighted the significant role played by South India in the country's alcohol market. According to his observations, the region contributes disproportionately to overall consumption despite accounting for a much smaller share of the national population.

"Interestingly, South Indian states have 18% of India's population, but they consumed as much alcohol, in value terms, as the rest of India," he said.

He noted that the South Indian alcohol market matches the combined size of the North, West and East in value terms.

"So, the South Indian alcohol market is as big as the entire North, West and East combined, but that's not the perception people carry," Maran remarked.

Consumer Preferences Are Evolving

The observations suggest that consumer expenditure in India is gradually shifting beyond traditional purchases such as jewellery towards lifestyle and discretionary categories, including alcoholic beverages.

Jewellery has historically occupied a prominent place in household spending because of its cultural significance and role as a store of value, particularly during weddings and festivals.

However, the growth of the alcohol industry indicates changing consumption patterns, driven by factors such as urbanisation, rising disposable incomes and evolving lifestyle preferences.

The remarks also underline the economic importance of the alcohol sector for several southern states, where liquor sales remain a major source of excise revenue.

Tamil Nadu's Growing Medical Tourism

Beyond alcohol consumption, Maran also spoke about Tamil Nadu's expanding tourism sector. He said the state has increasingly established itself as one of India's leading destinations for medical tourism over the past few years.

"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," he said.

He suggested that healthcare-driven travel has played an important role in strengthening Tamil Nadu's broader tourism industry while reinforcing the state's growing economic significance across multiple sectors.