Quick commerce, modern retail stores and changing drinking habits are giving India’s fledgling zero-proof beverages market a fresh momentum, prompting global liquor companies and startups alike to expand portfolios and rethink how they reach consumers.
Almost two years after non-alcoholic versions of beer and liquor gained traction, companies are betting that easier access—from instant delivery platforms to supermarkets and restaurants—will help turn curiosity into repeat purchases as more consumers seek to moderate alcohol consumption without opting out of social occasions.
Zero-proof beverages—without any alcohol—are drawing interest across the industry. Diageo-backed Sober has expanded into wines and ready-to-drink (RTD) cocktails without alcohol content. Pernod Ricard India has taken Jacob's Creek Unvined into modern retail.
Heineken 0.0, Corona Cero 0.0 and Budweiser non-alcoholic and Coolberg beers are building the alcohol-free beer segment, while Jimmy's Cocktails has introduced a non-alcoholic peach beer. Newer entrants such as 3 Sisters and Boohz have joined the market.
"The zero-proof category has moved from being a curiosity to becoming a legitimate, albeit still niche, segment," said Poonam Chandel, former managing director of Cobra Beer.
She said the category accounts for well under 1% of India's alcoholic beverages market by value, with annual volumes of less than 1 million cases. About 80% of those volumes come from alcohol-free beer, led by Heineken 0.0 and followed by Budweiser 0.0. Sober is among the leading players in non-alcoholic drinks.
“Consumers are increasingly buying these products not simply because they do not contain alcohol but because they want to participate in social occasions without drinking,” Chandel said.
Varying prices
Most alcohol-free beers are brewed conventionally before the alcohol is removed or are made using controlled fermentation, while zero-proof drinks use botanicals, extracts and natural flavours to recreate the taste and mouthfeel of alcoholic drinks. Their prices vary too, ranging from about ₹100 for trial-sized 180-200 ml RTDs and miniatures to over ₹2,000 for premium alcohol-free wines and gins.
"As consumer preferences evolve, demand for moderation-led choices and premium zero-proof experiences continues to grow. This fast-growing category complements our core business, and our increased investment in Sober shows our confidence in its future potential," said Praveen Someshwar, managing director and chief executive officer of Diageo India. United Spirits Ltd owns 25% of V9 Beverages, Sober’s parent company.
Not every company pursues the same strategy, though. Catwalk, a startup that makes dry non-alcoholic gin, has shifted from direct-to-consumer sales to focus on restaurants, bars and hotels. Founder Ishan Arora said repeat institutional orders have helped build a sustainable business.
Catwalk now sells about 1,600-1,700 bottles a month across Delhi, Mumbai, Bengaluru and Gujarat, with the dry state a very large business for it now, accounting for almost 1,200 bottles. Catwalk plans to introduce 180 ml miniature bottles before returning to e-commerce, betting that lower-priced packs will encourage first-time buyers.
Restaurants remain a challenge, with many outlets reluctant to actively promote zero-proof beverages because they fear customers may substitute them for more expensive alcoholic drinks, Arora said.
Sober is taking a different approach by expanding both its portfolio and distribution. Founded by Vansh Pahuja, the company has grown beyond alcohol-free spirits into wines, RTD cocktails and premium sparkling water.
Pahuja told Mint that Sober's net sales value went up from about ₹60 lakh before Diageo's investment in 2024 to ₹1.5 crore by 2025 and ₹5.5 crore in FY26. The company sold about 600 cases, or roughly 7,200 bottles, in May alone, the equivalent of almost 86,000 bottles on an annualized basis, with May's sales matching its entire annual volume in 2024.
Higher-margin bottles
While bottled drinks remain a higher-margin business than cans, Sober is increasingly using RTD cocktails and miniatures to attract younger consumers and first-time buyers. It recently launched zero-sugar, zero-calorie alcohol-free canned cocktails, including Picante and gin and tonic, selling its first batch of 8,000 Picante cans within about 70 days.
It has started listing products on Blinkit Gourmet and Zepto, though Pahuja said quick commerce is more valuable as a discovery platform than a sales engine.
"We want quick commerce to be a discovery channel. Consumers try a ₹100 can and then graduate to a full bottle," he said, adding that bottled spirits continue to attract consumers in the 32-45 age group, while RTDs have stronger traction among consumers in their twenties.
Quick commerce, however, has produced mixed results. While founders say instant delivery platforms have improved product discovery during social occasions, profitability remains constrained by discounting, platform commissions and rising input costs. Catwalk withdrew its canned products despite selling about 4,000 cans a month after aluminium costs rose due to the war in West Asia.
Shantanu Upadhyay, co-founder of Kati Patang beer, said the company continues to evaluate bringing back its KP Not portfolio but has yet to take a final call because there are no obvious synergies in its routes to market.