Indiana Alcoholic Beverage Market: Regulations, Statistics, Trends, and Wholesalers

The Hoosier State operates as an open market under the Indiana Alcohol and Tobacco Commission (ATC), which provides comprehensive oversight while allowing traditional three-tier distribution alongside limited direct sales opportunities. This creates a flexible regulatory environment that supports both established brands and emerging craft producers while maintaining some unique local restrictions.

Indiana had an approximate population of 6.9 million people in 2024, with 5 million within the legal drinking age bracket. The state ranks 20th in distilled spirits consumption, with annual sales of approximately 5.6 million 9-liter cases.

A particularly distinctive feature of Indiana’s regulatory framework is its one-of-a-kind “cold beer” restriction—Indiana is the only state where grocery and convenience stores may not sell cold beer, with chilled beer available exclusively in licensed package liquor stores, while warm beer can be sold in both liquor and grocery/convenience stores. Additionally, Indiana historically banned time-limited drink discounts (“happy hour”), a rarity in the U.S., but this ban was lifted in July 2025, allowing bars and restaurants to offer time-based drink specials.

We’ve prepared a guide to the Indiana market, which covers the following topics:

• Consumption trends
• The most popular alcohol categories
• Local guidelines

If you need help establishing your presence in Indiana, provide your information below, and we’ll contact you to share more on how we can help.

Consumption Trends In Indiana

Indiana Spirits Consumption from 2020-2024 by 9-Liter Cases

Indiana Wine Consumption from 2019-2023 by 9-Liter Cases

Indiana Beer Consumption from 2019-2023 by 9-Liter Cases

Indiana State Alcohol Licensing

Indiana operates as an open state with the Indiana Alcohol and Tobacco Commission (ATC) overseeing all aspects of alcohol regulation. Indiana is not a franchise state, providing flexibility in supplier-distributor relationships.

Common Licenses for Manufacturers in Indiana

Spirits

• Standard Distiller’s Permit – Authorizes commercial manufacture, storage, bottling, and shipment of spirits. Allows sales to Indiana licensed wholesalers and exports outside Indiana.
• Artisan Distiller’s Permit – For producers manufacturing up to 30,000 gallons of liquor annually (as of July 2025). Permits limited self-distribution—direct sales to bars, restaurants, and retailers within statutory caps. May include on-site tasting room privileges. Applicants must generally have held a qualifying Indiana alcohol producer permit for at least six months prior.

Wine

• Indiana Farm Winery Permit – Authorizes commercial manufacture, bottling, sales, and shipping of wine. Permits manufacture and bottling, on-premises sales by glass/bottle, complimentary samples, sales at farmers’ markets and festivals, and direct-to-consumer shipment with eligible permits.
• Direct Wine Seller’s Permit – For wineries (in-state and out-of-state) wishing to ship wine directly to Indiana consumers. Requires compliance with Indiana DTC limits, labeling, and reporting rules.
• Wholesaler’s Permit – Required to distribute wine to Indiana retail outlets. Farm wineries may sell directly to retailers (self-distribution) within statutory production limits.

Beer

• Brewer’s Permit (Primary Source of Supply Permit – 401-1) – Allows brewing, bottling, packaging, and transporting beer. Microbreweries (producing ≤90,000 barrels/year) may self-distribute up to 30,000 barrels/year to Indiana retailers; larger brewers must use wholesalers.
• Beer Dealer or Wholesaler Permit – Required for producers engaging in wholesale or retail sales in Indiana, with self-distribution privileges for microbreweries.

Out-of-State Brand Requirements

Spirits

• Out-of-State Supplier Permit – Out-of-state spirits producers must obtain a Primary Source Supplier Permit or equivalent from the ATC to sell or ship spirits to Indiana wholesalers. Authorizes sales to Indiana-licensed distributors only; direct sales to retailers or consumers are prohibited. Requires compliance with Indiana’s reporting, recordkeeping, and excise tax regulations.
• Sales Representative Permit – Any individual representing out-of-state spirits producers (sales reps or brokers) soliciting business in Indiana must hold this permit issued by the ATC.

Wine

• Direct Wine Seller’s Permit – Required for direct shipment from out-of-state producers to Indiana consumers. Applicant must be a licensed wine manufacturer in the home state and federally. Requires filing application, business documents, proof of compliance, and surety bond. Must be registered to do business in Indiana. Annual sales cap of 1,000,000 gallons of wine per year in Indiana. Cannot also be Indiana wine wholesalers or have been distributed through wholesalers within 120 days prior to application.

Beer

• Primary Source of Supply Permit (Out-of-State Brewer’s Permit) – Out-of-state brewers must hold this permit to legally sell, ship, or deliver beer into Indiana for wholesale distribution. Allows sales to Indiana-licensed beer wholesalers only, not directly to retailers or consumers.

Indiana State Alcohol Regulations

Price Posting in Indiana

Price posting is not required.

Brand/Label Registration Requirements

Statute provides the ATC with authority to require brand and label registration; however, regulations only require suppliers and importers to make available to the ATC, on request, copies of brand and label approvals. Labels are deemed approved if they have been federally approved.

Direct-to-Consumer Sales and Delivery

Wine

• Direct Wine Seller’s Permit – Wine manufacturers located inside or outside Indiana may apply for this permit to sell wine directly to Indiana residents.
• Farm Winery Sales – Farm winery licensees may sell wine to wholesale permit holders, to consumers on licensed premises by glass or bottle, ship to other states in accordance with their laws, sell at non-profit farmers’ markets by bottle only, and, with ATC approval, conduct sales at up to three additional locations under a Farm Winery Satellite Dealer Permit.

Spirits

• Artisan Distiller Direct Sales – Artisan distilleries may engage in limited self-distribution to bars, restaurants, and retailers within statutory caps, plus on-site tasting room sales.

Beer

• Microbrewery Self-Distribution – Microbreweries producing ≤90,000 barrels/year may self-distribute up to 30,000 barrels/year directly to Indiana retailers.

Retailer Delivery

Indiana retailers may sell in permissible containers and deliver to customers on licensed premises or to customers’ homes. Delivery may only be performed by the permit holder or an employee who holds an employee permit.

Indiana Spirits Volume Sales By Category – 2024 Data

Spirit trends in Indiana by volume and dollar sales in 2024.

Source: Beverage Information Group

Indiana Beer Volume Sales By Category – 2023 Data

Beer trends in Indiana by volume and dollar sales in 2023.

Source: Beverage Information Group

Indiana Wine Volume Sales By Category – 2023 Data

Wine trends in Indiana by volume and dollar sales in 2023.

Source: Beverage Information Group

Alcoholic Beverage Distributors Located In Indiana

Indiana is subject to the same three-tier system that every other state throughout the United States is subject to. Everything related to the sale of alcohol must take place within the three-tier system.

Selling Alcohol In Indiana

The sale of any and all alcoholic beverages within the state of Indiana is monitored and controlled by the Indiana Alcohol & Tobacco Commission. They regulate all aspects including but not limited to the manufacturing, selling, possession, and use of alcohol as well as tobacco.

We are continuously adding and updating answers to the questions below. Please check back frequently for more information.

FAQs on Indiana Beer, Wine & Spirits Sales

Buying Alcohol In Indiana – Hours, Locations & Taxes

Here are some of the most commonly asked questions about purchasing beer, wine, and spirits in IN.

FAQs on Buying Beer, Wine & Liquor in Indiana

(Data Sources – in.gov, wikipedia.org)

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