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Alcohol Use Halves from the Poorest to the Richest Households

Alcohol use in India is disproportionately higher among the poor — driven by accessibility and habit - while affluent consumers are moving toward controlled, premium, and socially acceptable drinking patterns, signaling India’s dual-track alcohol economy.

,   and  Datum Intelligence
1 min read

Table of Contents

According to NFHS 2019–21, alcohol consumption in India is inversely related to income — 26.6% of men in the lowest wealth quintile consume alcohol compared to only 12.8% among the wealthiest. Among women, the pattern holds, though at far lower levels (3.4% vs 0.4%).

  • 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 % among 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.
  • Drinking remains concentrated among lower-income groups
    • 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.
  • Rising affluence brings moderation and premiumization
    • In higher quintiles, fewer but wealthier drinkers are driving the shift toward premium brands and lower volumes.
    • Health consciousness, urban exposure, and social visibility contribute to controlled consumption patterns.
    • This marks 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.

What It Means

  • Alcohol use among India’s poorest reflects social normalization and affordability of low-cost beverages.
  • Wealthier groups are shifting toward occasional, premium, or social consumption, emphasizing quality over quantity.
  • The consumption gap underscores a behavioral divide — drinking as a coping mechanism versus a lifestyle choice.
  • The declining gradient with wealth also points to education and health awareness playing key roles in moderating alcohol use.

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