The state of Karnataka has recorded a notable increase in the number of active excise licences for the year 2025. According to official data, a total of 14,101 licences were either renewed or freshly granted, marking a rise from the 13,433 licences recorded in the previous year, 2024.
Retail Vending Dominates, Bengaluru Tops the List
In terms of sheer volume, retail vending licences, categorised as CL-2, continue to form the bulk of the excise permissions across the state. The geographical distribution shows a clear concentration in and around the capital city. The Bengaluru North, South, and Rural administrative divisions hold the highest number of such licences. They are followed by other major urban centres including Mysuru, Belagavi, Kalaburagi, and the Hubballi-Dharwad twin cities.
Surge Driven by Hotel and Club Licence Demand
Officials from the excise department attribute the year-on-year growth primarily to an increased number of applications, especially from the hospitality sector. The most significant contributor to this rise has been the CL-7 licence category, which is designated for boarding and lodging establishments like hotels and lodges.
Data reveals that the total count in the CL-7 category for 2025 reached 3,472, up significantly from 2,945 in 2024. "We gave 300 to 400 new licences in the CL-7 category, which are hotels and boarding houses, due to an increase in demand," stated Venkatesh Kumar, the Commissioner of Excise. He noted that much of this demand originated from establishments in and around Bengaluru, particularly those located along highways.
In contrast, the airports in the state saw minimal activity, with only one new licence issued across specialised categories like CL-16, CL-17, or CL-18 that cover duty-free outlets and airport bars. Meanwhile, licences for clubs (CL-4) also saw an uptick, rising from 297 in 2024 to 331 in 2025, with approximately 30 new licences accounting for the increase.
RVB Licences Grow as Keg Beer Culture Flourishes
Another category showing a clear upward trend is the Retail Vendor Beer (RVB) licence. The number of RVB licences across Karnataka increased from 904 in 2024 to 979 in 2025. Commissioner Venkatesh Kumar explained this growth is directly linked to changing consumer preferences.
"The demand for RVB licences is increasing mainly because more consumers are opting for keg or draught beer," he said. He elaborated that regular breweries supply branded beer in kegs which undergoes less pasteurisation, resulting in a fresher taste, and this is supplied directly to bars and restaurants holding RVB licences. Furthermore, the commissioner pointed out that the culture of freshly brewed beer popularised by microbreweries has indirectly boosted the demand for keg beer as well.
"Nearly 1,000 existing licence-holders already took RVB licences, and new licences are being issued as well, contributing to the overall increase in excise licence numbers year on year," Kumar added. The overall growth in licence numbers, while moderate, underscores a steady expansion in the state's regulated alcohol vending ecosystem, heavily influenced by urban demand and evolving consumption patterns.
