Report Overview

India Beer Market- Industry Trends & Forecast Report 2027

India beer market reached USD 4.34 billion in 2020. The market is further expected to reach USD 9.36 billion by 2027 and is projected to grow at a CAGR of 12.0% during 2021-2027 (forecast period). After whiskey, beer is India's second most popular alcoholic beverage. The growth of India beer market can be attributed to the burgeoning demand for diverse beer brands in India, together with the country's growing workforce. In India, alcohol consumption has become an intrinsic aspect of social interactions.

Source: BlueWeave Consulting

India Beer Market Overview

Beer is the second most-consumed alcoholic beverage after whisky in India. Beer is an alcoholic beverage that is brewed and fermented. It is generally created from malted barley water, yeast, and hops. There are two types of beer available in the India beer market, strong beer, and mild beer. Strong beer, known for its bitter taste, has a higher alcoholic strength when it comes out of the brewing process, due to the malt, hops, and water ratios used throughout the brewing process. Mild beer, on the other hand, is typically dark brown due to the inclusion of well-roasted malts or barley. It has a chocolaty, hazelnut, or burnt flavor and is less hopped than bitters.

Craft beer's growing popularity in India has prompted some brewers to expand their operations in order to reach a bigger audience. Craft beer's popularity is being fueled by millennials who prefer it over regular lagers because it is more authentic and premium.

Growth Drivers

Growing demand for premium beer over standard beer is contributing to the growth of the market

The growth of premium and super-premium brands of beer in India is driven by the emerging trend of “drink less but drink better”. This factor is increasing the demand for flavored beers and beer blends. Furthermore, rising urbanization raises the stress level of young people, resulting in increased beer consumption and a favorable impact on the India beer market. Also, Furthermore, the easy availability of low-cost beers is popular among the young population, which, in turn, is increasing the number of sales in the beer industry.

Last but not least, Furthermore, despite sluggish growth in overall beer sales, big brands such as Carlsberg Group have been witnessing significant growth in its premium brand, Tuborg. Likewise, Kingfisher’s premium beer also accounted for the majority of sales in the past years.

An increasing number of restaurants and pubs across India propelling the market growth

The Indian beer market is majorly driven by the increasing number of restaurants, cafes, and pubs in India. According to Indian Hospitality Industry, India has about 53,000 hotels and 70 lakh restaurants in the organized category and 2.3 crore restaurants in the unorganized sector. According to Dine-out (an online platform to reserve tables), Indians reserved over 4,500 restaurant tables per hour in 2019 in metro and non-metro cities. In addition, the Social café, which was first opened in Bangalore, now has 28 outlets all over India. This café has a beautiful ambiance and is known for serving high-quality beers. Thus, the rising number of restaurants, café, and pubs in India has further fueled the Indian beer market's market growth.

An increasing number of start-up companies in India beer market

The Indian beer market has been majorly supported by the increasing number of startups and new companies in the country. Also, the market is primarily supported by the growing number of beer companies in India such as Bira91, White Owl Brewing Company, Bee young, and others. Bira91, established in 2015, has become quite popular among millennials due to its flavorful offerings. The company has now entered the International market by setting up its offices in the USA and Singapore. Bira91 serves Bira Light, Bira Strong, Bira White, Bira Gold, Indian Pale Ale, Blonde, Malabar Stout, Boom Strong, and Boom Classic in their product portfolio. 

India Beer Market Restraints

Rising government regulations might prove to be a bottleneck for the market

The India beer market is currently subject to extensive government regulations. One reason for the high level of regulation is that brewers in some areas are being regulated by the central government, as well as state governments, and localities. The regulations implemented on the brewing process include mandatory approval of the formula and brewing process for domestic flavored beers (such as lambics), as well as beer measurement standards. These regulations have proved to be a stumbling block in their efforts to expand their companies, stifling the development of the Indian beer industry.

Impact of COVID-19 on the India Beer market

The COVID-19-induced pandemic has severely impacted the India beer market. As soon as COVID-19 was declared as a pandemic by the WHO, the Indian government announced a nationwide lockdown to stop the spread of the deadly virus. The government also had stated that only essential services will be provided throughout the country. Additionally, the administration has announced that only critical services will be given throughout the country. Because beer, as a commodity, falls into the category of non-essential items, consumers witnessed significant problems in getting beer during the lockdown phase. As a result, beer consumption has decreased throughout India, thereby negatively impacting the beer market. The restaurants, pubs, resto-bars, cafes, hotels, and others were also closed during the pandemic. Consumers were also scared to go out for socializing in the fear of contracting the virus causing COVID-19. These factors have significantly lowered the volume of beer sold in India and have had a negative impact on the beer market.

India Beer Market- By Category Type

Based on category, the India beer market is bifurcated into strong and mild Beer. The strong beer segment held the largest share of India beer market in 2020. This segment is predicted to remain strong over the forecast period as well. In India, strong beer is more popular than mild beer; nevertheless, the beer market is undergoing a paradigm shift, with the demand for light beer  increasing in recent years. Increasing health consciousness among the younger population, as well as new advancements in the mild category with a range of flavors, have aided the expansion of the mild beer segment in the Indian beer market in recent years.

India Beer Market- By Packaging Type

Based on packaging type, the India beer market is segmented into bottled beer and canned beer. The bottled segment held the largest share in the India beer market in 2020. The segment is expected to maintain its dominance over the forecast period as well. The growth of the canned beer segment in recent years has been aided by the convenience of transporting, low weight, easily recyclable nature, and low price. Additionally, the limited exposure of store beer to light and oxygen, resulting in fresher taste and flavor for a longer period of time, has also aided the growth of the canner beer segment in the Indian beer industry in recent years.

Source: BlueWeave Consulting

India Beer Market- By Region

Based on region, the market has been divided into- Northern, Eastern, Western, and Southern India. Among all the regions, the Southern part of India is the leading region in the Indian beer market in 2020 and has significantly contributed to the growth of the India beer market. Additionally, the Western region is expected to register the second-largest share in the India beer market. The presence of numerous companies in South India, increasing industrialization, growing IT industry, and increasing per capita income in the region are contributing to the growth of the beer market in the southern part of the country.

India Beer Market Competitive Landscape

The presence of leading players in the India beer market space has greatly impacted the opportunities for new entrants to the market as the market is highly consolidated with only a few players holding a majority stake. Some of the key players in the market include 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 market players are competing intensively in terms of producing high-quality beer and have been engaging in acquisitions lately.

India Beer Market Recent Developments

• On April 7, 2021, B9 Beverages Pvt Ltd. announced that the company is looking forward to launching a vast array of new beer products in the Indian beer market, addition to some re-launches of existing products. The company is taking the step forward as the competition amid craft breweries is escalating. B9 Beverages Pvt Ltd. is expected to release various batches of limited edition beer products brewed at its Limited Release Taproom that was inaugurated for operations in Bengaluru last year.

• On October 28, 2020, United Breweries Limited launched Kingfisher Ultra witbier—a craft-style beer in New Delhi which makes it the first non-lager under the entire portfolio. The beer is brewed using the genuine Belgian wheat beer recipe and has a refreshing taste. It is made with natural extracts of coriander, orange, spices from Belgium, and aromatic hops from the United States.

Scope of Report

By Category Type 

• Strong
• Mild

By Packaging Type

• Bottled Beer
• Canned Beer

By Number of Cases

• 650 ML (12 bottles in a case)
• 500 ML (24 cans in a case)
• 330 ML (24 bottles in a case)
• Others

By Distribution Channel

• On-Trade Channel
• Off-Trade Channel

By Region

• Northern
• Southern
• Eastern
• Western