Alcohol Consumption Highest Among Lower-Income Groups; Declines Steadily with Wealth
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The Big Picture
Alcohol consumption in India is inversely correlated with income. Among men, use declines sharply from 26.6% in the lowest wealth quintile to 12.8% in the highest — a 52% drop. Among women, prevalence falls from 3.4% to just 0.4% (-88%), underscoring the same downward gradient across both genders.
Why It Matters
The pattern suggests affordability is not the driver — rather, social norms and lifestyle choices evolve with economic status. The bottom 40% of households form the core tax base for state excise revenues despite low per-capita income. Rising affluence brings moderation and premiumization in India's alcobev market.
Alcohol Consumption is Inversely Correlated with Income
Alcohol use declines sharply with rising wealth — from 26.6% among men in the lowest quintile to 12.8% in the highest. Among women, prevalence falls from 3.4% to just 0.4%, underscoring the same downward gradient. The pattern suggests that affordability is not the driver — rather, social norms and lifestyle choices evolve with economic status.
Concentrated Among Lower-Income
The bottom 40% of households account for over half of all alcohol consumers in India. High prevalence in these segments reflects easy access to local and informal liquor markets and limited enforcement. These groups form the core tax base for state excise revenues, despite low per-capita income.
Cultural & Social Factors
Alcohol remains more prevalent in lower-income households, often linked to cultural acceptance, stress coping, and cheaper local options. Higher-income groups demonstrate restraint driven by health consciousness, social image, and lifestyle moderation.
Moderation & Premiumization
In higher quintiles, fewer but wealthier drinkers drive the shift toward premium brands and lower volumes. Health consciousness, urban exposure, and social visibility contribute to controlled consumption — marking a structural evolution from mass drinking to value-driven drinking in India's alcobev market.
This suggests that alcohol remains more prevalent in lower-income households, often linked to cultural acceptance, stress coping, and cheaper local options, while higher-income groups demonstrate restraint driven by health consciousness, social image, and lifestyle moderation.
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