India Beer Market Problematic Yet Promising: Poised to Reach USD 5,655.0 Million by 2027
Published | 24 May 2021
A study recently conducted by the strategic consulting and market research firm, BlueWeave Consulting revealed that India beer market reached USD 2,802.0 Million in 2020. The market is further expected to reach USD 5,655.0 Million by 2027 and is projected to grow at a CAGR of 8.4% during 2021-2027 (forecast period). The growth of the India beer market has been positively impacted by the growing demand for alcoholic beverages in India. Additionally, the rising developments in the beer industry across India, including the rising craft beer culture have been the driving force for the India beer market. Additionally, the ease of doing business has prompted many startup companies to start producing beer, which has positively impacted the India beer market.
Rising demand for
premium beer over standard beer contributing to market
growth
The premium and super-premium
beer brands in the India beer market have been driven by the rising trend of
drinking less but drinking better. Rapid urbanization rates across India have
raised the demand for such products in the region owing to the easy
availability of low-cost beers which are popular among the country's youth. Furthermore,
even though the beer market has been seeing sluggish growth in overall beer
sales, many large companies, such as Carlsberg India, have seen increased
demand for their premium brand, Tuborg.
The Rise in the
number of restaurants, pubs, and clubs across India
According to the
latest Indian Hospitality Industry insights, India has over 53,000 hotels and around
7 million restaurants belonging to the organized and regulated category with 23
million eateries in the unorganized category. Dine-out, an online platform that
allows restaurant table reservations, recently issued a report claiming that Indians
reserved more than 4,500 restaurant tables per hour in the year 2019 in key metropolitan
and non-metropolitan cities. The statistics clearly indicate that there is a
growing demand for restaurants all over India, which has increased the number
of restaurants, café, and pubs being built in India, fueling the growth of the India
beer market.
Increasing population
with rising in per capita income
India beer market is expanding
at a rapid pace, owing to rising population in both urban and rural areas, as
well as rising disposable income, particularly in developing regions, driving
demand for beers on a larger scale. In terms of population, China is followed
by India, which has a population of about 1.38 billion people. Factors such as
cultural change, change in lifestyle of both men and women, and penetration of
western culture have also influenced consumers’ behavior and inclination toward
alcoholic beverages which have proven influential for the India beer market. Also, the
rise of the beer market in India has been aided by an increase in female
drinkers and an annual population increase of roughly 20 million young people.
India Beer Market COVID Impact Analysis
Due to the beer
industry's involvement in the production of products that fall under the non-essential
category, the COVID-19 pandemic has had a negative influence on the total India
beer market. Furthermore, the nationwide lockdown imposed by the
Government of India soon after the outbreak of the pandemic prohibited many
bars and restaurants providing alcoholic beverages from operating, resulting in
lower sales of all alcoholic beverages, including beer. Despite the
government's efforts to ease regulations, the overall impact on India's beer
sector remains adverse.
The Delhi government
had reopened outlets for the sale of liquor and alcoholic beverages in the
state after a few days of lockdown. The government had also imposed a 70%
tax on the MRP for the sale of alcoholic beverages. The hike in the
prices of beer disrupted the budget of consumers and their choice shifted to
lower-cost high-alcohol beverages.
The key market players are finding
opportunities amid the COVID-19 pandemic to fight the situation and increase beer
sales in the market. Several state governments have allowed online liquor sales
and home delivery services due to the pandemic. States such as Chhattisgarh,
West Bengal, Maharashtra, and Punjab have taken steps in this direction. Moreover,
the steps initiated by different state governments and authorities have laid the
strong groundwork to shape the future of the India beer market.
India beer Market: Regional Insights
Based on region, the India
beer market has been categorized into Northern, Southern, Eastern, and Western
region. Among all the regions, the Southern
region accounted for the largest share in the India beer market in the year
2020. In terms of volume, the Southern region again proved to be the leading region
in the India beer market in 2020. The Southern region of India is the most
economically advanced region with a high per-capita income in comparison to its
counterparts. A number of global leaders have their offices in the region with
Bengaluru, Chennai, and other cities emerging as centers for the growth in the
region. Additionally, companies from diverse industries have set up their
offices in the southern region of India, and this has led to an increase in the
number of young people in the region, thereby supporting the growth of the beer
market in the region.
India beer
market Competitive
Landscape
The leading players in the India beer market are
United Breweries Limited, Anheuser
Busch InBev SA [Crown Beers India Limited], Carlsberg India Private Limited, Mohan
Meakin Limited, SOM Distilleries and Breweries Limited, Molson Coors India
Private Limited, DeVANS Modern Breweries Limited, B9 Beverages Private Limited,
and other prominent players. The beer market in India is highly
consolidated, with only a few significant players controlling the majority of
the market. It has severely impacted the new entrants to make their presence
felt in the region. Additionally, many big companies are incorporating mergers
and acquisitions to curb competition in India.
Don’t miss the business opportunity of the India beer market.
Consult our analysts to gain crucial insights and facilitate your business
growth.
The in-depth analysis
of the report provides information about growth potential, upcoming trends, and
statistics of the India beer market. It also highlights
the factors driving forecasts of total market size. The report promises
to provide recent technology trends of the India beer market and industry
insights to help decision-makers make sound strategic decisions. Furthermore,
the report also analyses the growth drivers, challenges, and competitive
dynamics of the market.
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