INDUSTRY NEWS

AB InBev Enters Non-Alcoholic Beer Market in India

Published Date | 2020 August 15

Anheuser-Busch InBev India has launched its first alcohol free beer “Budweiser 0.0” which is expected to fuel the India beer market

India: Anheuser-Busch InBev (AB InBev) world’s largest brewer added the non-alcoholic beer Budweiser 0.0 to its India portfolio. The new product will be available across online and offline trade channels and also in Mumbai, Delhi, Bangalore, Pune, Chennai, Hyderabad, Pune, Kolkata, and Gujarat. Launch of Budweiser 0.0 is in lined with company’s global smart drinking goals which ensures that low and non-alcoholic beer should make up at least 20 percent of the global beer volume by 2025. Budweiser is one of the fastest-growing beer brands in the country and the market for non- alcoholic beers is still at nascent stage.

According to BlueWeave Consulting, the global smart drinks industry is expected to boost on account of changing consumer taste, health concerns and rising demand from teenagers due to defined stringent laws pertaining to a defined drinking age. Leading global brewers such as AB InBev, kingfisher, Heineken are targeting the untapped areas of India where alcohol use is banned, thereby introducing non-alcoholic drinks to their portfolio. Non- alcoholic beers contain 0 or 0.05% of alcohol which is favoring the growth of the market. Additionally, factors such as rapid urbanization, healthy lifestyle, and cultural diversity are some other factors driving the consumption of non- alcoholic beers.

The emerging trend of a healthy lifestyle is causing a decrease in hard drinks consumption and non-alcoholic drinks are appealing more to customers who prefer drinks with less alcohol content or to the consumers who like soft drinks. The non-alcoholic drinks market is expected to rise in the coming years as leading companies are planning to enhance their product portfolio by adding non- alcoholic drinks. The healthy growth rate for the beer industry is an indication of the huge potential of opportunities open for breweries and beer makers in India.

According to BlueWeave consulting’s report, Titled- “India Beer Market By Category (Strong and Mild), By Packaging Type(Bottled Beers and Canned Beers), By Distribution Channel (On-Trade and Off-Trade), By Region (North, West-East, and South); Size and Forecast,2015-2025

The Indian beer market is expected to grow with a CAGR of 9.90% over the forecast period 2019-2025. The Indian beer market is progressively attractive and it is anticipated that the beer market will double in size over the forecast period. Owing to the growing youth population, rising purchasing power, changing consumer preference, and growing urbanization which are the major growth factors of the beer industry in India. Additionally, changing lifestyle, increasing stress, and diversification of products helping Beer industry to grow in India. The forthcoming maturation of the beer market combined with the growing middle class will certainly open up the interesting possibilities for breweries.