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Forecast Period
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2025-2030
|
|
Market Size (2024)
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USD 11.36 Billion
|
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CAGR (2024-2030)
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5.8%
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Fastest Growing
Segment
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On-Trades
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Largest Market
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North
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Market Size (2030)
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USD 15.93 Billion
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Market Overview
India Beer Market was valued at USD 11.36
Billion in 2024 and is expected to reach USD 15.93 Billion by 2030 with a CAGR
of 5.8% during the forecast period. The
Indian beer market is one of the most dynamic segments in the alcoholic
beverages industry, characterized by a blend of traditional and modern
consumption patterns. As a part of the broader alcoholic beverages market, beer
holds a significant share, driven by factors such as evolving consumer
preferences, rising disposable income, and an increase in social acceptance.
The market is segmented into various categories based on the type of beer,
including lager, ale, stout, and specialty beers, each catering to different
consumer preferences. Beer is a fermented alcoholic beverage made from grains,
typically barley, hops, yeast, and water. The Indian market primarily focuses
on lagers, which dominate due to their lighter taste and lower alcohol content,
aligning with the preferences of most Indian consumers. However, the craft beer
segment, although niche, is growing rapidly, reflecting a shift toward
premiumization and experimentation among urban consumers.
The consumption of beer in
India is largely driven by social occasions, festivals, and celebrations.
Urbanization has led to the proliferation of pubs, microbreweries, and
restaurants, which has further fueled the demand for various beer types.
Moreover, beer is increasingly being perceived as a safer and less intoxicating
alternative to spirits, making it a popular choice among young adults and
women. The Indian beer market offers a wide variety of products, including
bottled beer, canned beer, and draught beer. Among these, bottled beer is the
most consumed due to its convenience and availability. However, canned beer is
gaining traction due to its portability and longer shelf life. Draught beer,
although limited to urban areas and specific outlets, is becoming popular in
metros and Tier 1 cities. The market is influenced by various factors,
including government regulations, taxation policies, and cultural attitudes
toward alcohol consumption. The regional diversity in beer preferences also
plays a critical role, with some states favoring stronger beers and others
inclined towards lighter options. The Indian beer market is also witnessing
increasing investments from international players, leading to the introduction
of global brands and innovative brewing techniques.
Key Market Drivers
Rising
Disposable Income and Urbanization
The rising disposable income among Indian consumers,
particularly in urban areas, has significantly impacted the beer market. As
more individuals move into higher income brackets, their spending capacity on
non-essential goods, including alcoholic beverages, increases. Urbanization has
also led to lifestyle changes, with a greater acceptance of beer consumption in
social settings. The growth of organized retail, bars, and pubs in metropolitan
cities and Tier 1 cities has created more opportunities for consumers to
experiment with different types of beer. The influx of international beer
brands and the expansion of premium beer segments are directly linked to the
increasing purchasing power of the urban population. Additionally, the younger
demographic, which is more exposed to global trends, is driving the demand for
diverse and premium beer options, further fuelling market growth.
Changing
Social Attitudes and Increased Acceptance
There has been a noticeable shift in social attitudes
towards alcohol consumption in India, particularly beer. Traditionally, alcohol
consumption was often stigmatized and limited to certain social groups and
occasions. However, with globalization and the influence of Western culture,
there is a growing acceptance of moderate drinking, especially among younger
adults and women. Beer, often perceived as a milder alcoholic beverage compared
to spirits, is increasingly seen as a socially acceptable option for casual and
social drinking. The proliferation of beer-related events, such as Oktoberfest
celebrations and beer tasting festivals, has also contributed to the
normalization of beer consumption. This changing mindset is opening new
consumer segments and expanding the market.
Expansion
of Distribution Channels
The expansion of distribution channels, including
organized retail chains, online platforms, and dedicated beer outlets, has
significantly enhanced the availability and accessibility of beer across India.
Organized retail has played a crucial role in making a wide range of beer
brands and varieties available to consumers. The growth of online alcohol
delivery services, especially during and post-COVID-19, has further boosted
beer sales by providing a convenient and safe purchasing option. This has also allowed
for a more personalized shopping experience, with consumers able to choose from
a wide range of products at the click of a button. Additionally, the rise of
microbreweries and craft beer outlets in urban areas has introduced consumers
to a broader array of beer types and flavors, contributing to market expansion.
Increasing
Popularity of Craft Beer
The craft beer segment, although still in its nascent
stage in India, is rapidly gaining popularity. Craft beer is characterized by
its artisanal brewing methods, unique flavors, and premium quality, catering to
a niche but growing segment of consumers who are willing to pay more for a
distinct and personalized beer experience. The rise of microbreweries in
metropolitan cities like Bangalore, Mumbai, and Delhi has played a pivotal role
in this growth. These establishments not only offer fresh, locally brewed beer
but also serve as social hubs, attracting beer enthusiasts and fostering a
culture of beer appreciation. The increasing popularity of craft beer is also
driven by a growing awareness of quality ingredients, brewing techniques, and a
desire for variety beyond the traditional lager. This trend is expected to
continue as more consumers seek unique and premium beer options.
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Key Market Challenges
High
Taxation and Stringent Regulations
The beer industry in India faces significant
challenges due to high taxation and stringent regulations. Alcohol is a state
subject in India, meaning each state has its own policies regarding production,
distribution, and taxation. This creates a complex and fragmented regulatory
environment for beer manufacturers. High excise duties and other taxes increase
the price of beer, making it less affordable for a large segment of consumers.
Additionally, regulatory hurdles, such as restrictions on advertising and
strict licensing requirements, limit the market reach and growth potential of
beer companies. The frequent changes in state-level policies also add to the
uncertainty, making it difficult for companies to plan long-term investments.
Cultural
and Social Barriers
Despite the growing acceptance of beer, cultural and
social barriers still pose significant challenges to the market. In many parts
of India, alcohol consumption is still frowned upon due to religious and
cultural beliefs. This is particularly evident in rural areas and among older
generations, where alcohol consumption is associated with negative stereotypes.
These cultural barriers limit the growth potential of the beer market,
especially in conservative regions. Furthermore, the taboo around women consuming
alcohol, although gradually diminishing, still exists in many parts of the
country. This restricts the expansion of the female consumer base, which could
otherwise be a significant growth driver for the market.
Competition
from Traditional Alcoholic Beverages
Beer faces stiff competition from traditional
alcoholic beverages like Indian-made foreign liquor (IMFL), country liquor, and
wine. These alternatives often have a stronger cultural acceptance and are
deeply rooted in regional consumption patterns. For instance, spirits like
whisky and rum are more popular in certain states due to historical consumption
trends. Additionally, country liquor is often cheaper and more accessible,
especially in rural areas, making it a preferred choice for many consumers. This
competition limits the penetration of beer in various regions, especially where
traditional alcoholic beverages dominate. The challenge is further compounded
by the fact that these alternatives often have higher alcohol content,
appealing to consumers who seek a stronger drink.
Supply
Chain and Infrastructure Issues
The beer market in India is also challenged by supply
chain and infrastructure issues. The production and distribution of beer
require a well-established cold chain infrastructure to maintain the quality
and freshness of the product. However, the lack of adequate cold storage
facilities and inefficient logistics networks in many parts of the country
hampers the timely delivery of beer, especially in remote and rural areas. This
not only affects the availability of beer but also increases the operational
costs for manufacturers. Additionally, the perishable nature of beer, combined
with long distances between production facilities and end markets, adds to the
complexity of managing the supply chain. Addressing these challenges is crucial
for expanding the market reach of beer in India.
Key Market Trends
Premiumization
of Beer
The Indian beer market is witnessing a
strong trend towards premiumization, driven by changing consumer preferences
and the increasing disposable income of urban populations. Premium and
super-premium beer segments are growing faster than the overall market as
consumers seek higher quality, better taste, and unique experiences. This trend
is evident in the rising demand for imported beers, craft beers, and specialty
beers that offer distinct flavors and brewing techniques. The premiumization
trend is also supported by the growth of microbreweries and brewpubs in urban
areas, which cater to consumers looking for exclusive and customized beer
experiences. Additionally, beer brands are investing in premium packaging and
marketing strategies to appeal to this discerning consumer base. This shift
towards premiumization is expected to continue as more consumers move away from
mass-produced beers in favor of premium options that offer a superior drinking
experience.
Growth
of Low- and Non-Alcoholic Beers
As health consciousness among Indian
consumers rises, there is a growing demand for low- and non-alcoholic beers.
These products cater to consumers who want to enjoy the taste of beer without
the effects of alcohol, making them an attractive option for health-conscious
individuals, designated drivers, and those who abstain from alcohol for
religious or personal reasons. The introduction of innovative flavors and
marketing campaigns emphasizing health benefits have further fueled this trend.
Additionally, the availability of non-alcoholic beer in more retail outlets and
online platforms has made it easier for consumers to access these products.
This segment is expected to grow rapidly, driven by changing lifestyles and an
increasing focus on health and wellness.
Segmental Insights
Product
Type Insights
In the India Beer Market, premium lager has
emerged as the leading category, outpacing standard lager and specialty beer.
This dominance is driven by a combination of changing consumer preferences,
rising disposable incomes, and a growing urban middle class seeking higher
quality and diverse flavor profiles. Premium Lager, characterized by its
superior ingredients, refined brewing processes, and often more complex flavor,
appeals to a more discerning consumer base. As Indian consumers become more
exposed to global beer trends through travel and media, their tastes have
evolved. They increasingly prefer beers that offer a richer experience, both in
terms of taste and brand prestige. This shift has been particularly pronounced
in urban centers like Delhi, Mumbai, and Bangalore, where there is a
concentration of affluent, young professionals who are willing to pay a premium
for better quality products.
The marketing strategies employed by
leading beer companies in India have also played a significant role in the rise
of Premium Lager. Brands have focused on positioning their premium offerings as
lifestyle choices rather than just beverages, aligning them with themes of
sophistication, status, and modernity. This has resonated well with the target
demographic, further driving the popularity of this category. While Standard
Lager continues to have a significant market share, primarily due to its
affordability and widespread availability, its growth is relatively stagnant
compared to Premium Lager. Specialty Beer, though gaining traction, remains a
niche segment catering to a smaller, more experimental audience. Premium
Lager's leading position in the India Beer Market is a result of evolving
consumer tastes, strategic marketing, and a growing willingness among consumers
to spend more on quality beer. This trend is expected to continue as the market
matures and consumers become more sophisticated in their choices.
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Regional Insights
North India plays a pivotal role in the
India beer market, emerging as the leading region due to several influential
factors. The region's dominance is driven by a combination of cultural,
economic, and demographic factors that create a favorable environment for beer
consumption and market expansion. Culturally, North India, particularly states
like Punjab, Haryana, and Delhi, has a long-standing tradition of alcohol
consumption, with beer being a popular choice among various age groups. This
cultural acceptance of beer, especially in urban areas, has led to its
widespread popularity. The social fabric of the region, where beer is often
consumed during social gatherings and celebrations, further boosts its demand. North
India is home to some of the most economically developed states in the country.
The higher disposable income levels in urban centers such as Delhi NCR,
Chandigarh, and Jaipur translate into increased spending on lifestyle products,
including beer. The growing middle class in these regions is more inclined
towards premium and craft beer varieties, contributing to the market's
expansion.
The demographic structure of North
India, with a significant proportion of the population being young and urban,
fuels the beer market. The younger demographic, particularly those in
metropolitan areas, exhibit a strong preference for beer over traditional
alcoholic beverages, further driving market growth. The increasing urbanization
in Tier 2 and Tier 3 cities is also contributing to the expansion of the beer
market in the region. North India benefits from a well-established distribution
network, with major beer brands ensuring their presence across urban and
semi-urban areas. The region's robust infrastructure and connectivity
facilitate the smooth distribution of beer, ensuring its availability across a
wide geography. North India's leading position in the India beer market is a
result of its cultural preferences, economic prosperity, youthful demographics,
and efficient distribution networks, all of which create a thriving market for
beer in the region.
Recent Developments
- In 2024,
Heineken's United Breweries Limited (UBL) has launched a new beer called
Queenfisher in India, under its Kingfisher brand. The beer is being positioned
as a celebration of sisterhood and women's empowerment and features an
all-women initiative from its formulation to brewing. Queenfisher beer will be
available at leading outlets across Goa and will be added to the portfolio of
Kingfisher and become available across other cities.
- In 2023,
The Indian liquor brand Lone Wolf launched its two new beer variants, Alpha and
Mavrick, in a grand event held in New Delhi. The launch marked a significant
expansion of the brand's portfolio, aiming to cater to the diverse preferences
of beer lovers. The new offerings, a light and crisp lager and a Belgian Wit
bier, were well-received by the enthusiastic crowd at the event.
- Homegrown
beer brands like Proost Beer and Bira 91 are diversifying their product
portfolios and expanding into new markets to cater to this growing demand. In
2024, Proost Beer secured funding through a mix of equity and debt funding,
while Bira 91 has raised USD 200 million in funding so far, including a recent
USD 25 million investment from Tiger Pacific Capital. Financing platform
GetVantage has invested in alcoholic beverage and beer brands like Grano69, NAO
Spirits, and Moonshine, and aims to channel over USD 5 million of funds into
this sector within the year.
Key Market Players
- United Breweries Limited
- B9 Beverages Private Limited
- Arbor Brewing Company (India) Private Limited
- Carlsberg India Private Limited
- Devans Modern Breweries Limited
- SOM Distilleries and Breweries Limited
- Gateway Brewing Co. LLP
- Khemani Distilleries Pvt. Ltd
- Inbrew Beverages Private Limited
- Onkara
Beverages & Hospitality Private Limited
|
By Product Type
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By Flavor
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By Distribution
Channel
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By Region
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- Standard Lager
- Premium Lager
- Specialty Beer
|
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Report Scope:
In this report, the India Beer market has been segmented
into the following categories, in addition to the industry trends which have
also been detailed below:
- India Beer Market, By Product Type:
o Standard Lager
o Premium Lager
o Specialty Beer
- India Beer Market, By Flavor:
o Flavored
o Non-flavored
- India Beer Market, By Distribution
Channel:
o On-Trades
o Off-Trades
- India Beer Market, By Region:
o North
o South
o East
o West
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents
in the India Beer Market.
Available Customizations:
India Beer Market report with the given market
data, TechSci Research offers customizations according to a company's specific
needs. The following customization options are available for the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
India Beer Market is an upcoming report to be
released soon. If you wish an early delivery of this report or want to confirm
the date of release, please contact us at [email protected]