Report Overview

India Beer Market - Industry Trends & Forecast Report, 2029

India beer market size was estimated at USD 14.47 billion in 2022. During the forecast period between 2023 and 2029, the size of India beer market is projected to grow at a CAGR of 8.38% reaching a value of USD 23.45 billion by 2029. Major growth drivers for the India beer market include increasing consciousness surrounding imported and premium beer brands. Consumers are interested in trying new and unique beer types, indicating a willingness to invest in well-known, high-quality brands. The phenomenon is propelled by the swift pace of globalization, which has facilitated consumer access to a diverse spectrum of beers on a global scale, thereby augmenting their knowledge of various beer styles and fostering a penchant for new and intriguing options. Further contributing to the growth trajectory is the ascendancy of craft brewing, renowned for its production of singular, superior-quality beers that often command premium pricing compared to mass-produced counterparts. The advent of e-commerce has significantly eased the procurement process for consumers seeking imported and premium beers. Online retailers, distinguished by an extensive array of offerings and competitive pricing strategies, have supplanted traditional brick-and-mortar establishments in this regard. Also, the pervasive impact of social media is manifest in the realm of beer market dynamics. Consumers, leveraging platforms for social discourse, actively share their experiences and opinions concerning diverse beers. The increasing online conversations not only boost brand awareness but also help raise interest and demand for less popular beer brands.

India Beer Market – Overview

The India beer market refers to the economic domain and commercial activities associated with the production, distribution, sale, and consumption of beer within the geographical and market context of India. This market encompasses various facets, including the manufacturing and marketing of different beer types, the influence of consumer preferences, regulatory frameworks, and the competitive landscape among beer producers and distributors operating in India.

India Beer Market

Growth Drivers

Changing Lifestyle of Consumers

The dynamic growth of the India beer market is propelled by the evolving lifestyles of consumers. As societal trends and preferences undergo transformation, there is a notable surge in the demand for beer. This shift is particularly pronounced among consumers who are adapting their lifestyles to modern, dynamic routines. The inclination towards socializing and leisure activities, often accompanied by beer consumption, contributes significantly to market expansion. This changing lifestyle pattern, characterized by an increased openness to recreational and social indulgences, serves as a key driver for the burgeoning beer market in India.

Rising Expenditure Capacities of the Consumers

The India beer market is experiencing a surge in growth driven by the increasing expenditure capacities of consumers. As individuals have more disposable income, there is a notable uptick in beer consumption. This trend aligns with Kartikeya Sharma, the India president of Anheuser-Busch InBev, highlighting the importance of favorable taxation for market growth. Despite global beer popularity, India's consumption has been modest, standing below 350 million cases annually. Sharma suggests that if states adopt appropriate taxation policies, it could propel significant expansion. This underscores the crucial role of consumer spending power in shaping the upward trajectory of the India beer market.

Restraints

Stringent Regulations Impacting Alcohol Production and Distribution in India

The growth of the India beer market is constrained by stringent regulations governing the production, distribution, and sale of alcoholic beverages. These regulatory measures pose challenges to the industry, limiting its ability to expand and innovate. The complex and restrictive nature of these regulations hampers the operational flexibility of beer producers, impacting the overall market growth. Adherence to compliance standards becomes a significant barrier, affecting the efficiency and agility of businesses in the beer sector. As a result, the industry faces impediments in responding dynamically to market demands and consumer preferences, hindering its potential for robust growth.

Impact of COVID-19 on India Beer Market

COVID-19 pandemic adversely affected the India beer market, causing production reductions, closure of taprooms, and disrupted supply chains. Lockdowns led to substantial losses in raw materials and finished products, while reverse migration and supply chain disruptions further strained the industry. Despite challenges, leading beer companies enhanced logistics, aiding market recovery. Opportunities for premiumization and online sales emerged, but on-premises establishments faced ongoing challenges due to liquor consumption bans. Job losses and reduced disposable incomes temporarily slowed the shift to beers and premium categories. However, the industry exhibited resilience, adapting to consumer preferences with the introduction of diverse beers, indicating a promising outlook in the medium to long term.

India Beer Market

Segmental Coverage

India Beer Market – By Product Type

By product type, the India beer market is divided into Standard Lager, Premium Lager, and Specialty Beer segments. The standard lager segment holds the highest share in the India beer market by product type. This segment, characterized by its traditional and widely consumed lagers, stands as the market leader. Standard lagers, with their broad consumer appeal and established market presence, outpace other beer categories in terms of market share. This dominance is attributed to the widespread popularity and familiarity of standard lagers among consumers, making it the preferred choice in the Indian beer market. As a result, the standard lager segment plays a pivotal role in shaping the overall market dynamics and preferences within the beer industry in India.

India Beer Market – By Production

Based on production, the India beer market is bifurcated into Macro-Brewery and Micro-Brewery segments. The macro-brewery segment holds a higher share in the India beer market by production. It can be attributed to their capacity for large-scale beer production and distribution. The Indian beer market is experiencing growth propelled by increasing disposable incomes, a rising preference for low-alcohol beverages, and heightened social acceptance. Market expansion is further driven by the introduction of new low-alcohol beer variants and technological advancements. Ongoing innovations by beer manufacturers in terms of flavors and quality contribute to a diverse beer landscape in India, catering to a broader target audience and stimulating heightened industry demand. Additionally, the introduction of online ordering, coupled with doorstep delivery services in select states, has the potential to further amplify industry growth.

India Beer Market – By Flavor

Based in flavor, the India beer market is split into Flavored and Non-flavored segments. The non-flavored segment holds a higher share in the India beer market. The increased preference for non-flavored beer is a result of the robust performance of super premium and premium beer brands in the industry. Notably, the rising fondness for alcoholic beverages among consumers during various celebrations and social and cultural events contributes to the market's growth in the country. Also, the ongoing urbanization process elevates stress levels among young adults, leading to an uptick in beer consumption and positively influencing the market.

India Beer Market – By Distribution Channel

Based on distribution channel, the India beer market is divided into Supermarkets & Hypermarkets, On-Trades, Specialty Stores, and Convenience Stores segments.

India Beer Market – By Region

Regionally, the India beer market is segmented as North India, South India, East India, and West India. South India holds the highest share in the India beer market during the forecast period. Hyderabad is gradually embracing a party culture, with beer sales thriving due to affordability, accessibility, and the perception of lower alcohol content. This trend propels market growth. Conversely, Andhra Pradesh has witnessed a decline in alcohol consumption over the past three years, attributed to periodic price hikes by the state government. In Chennai, the introduction of Japanese and German wheat beer brands, though pricier, aims to diversify choices. Continued launches of such products are aexpected to further stimulate market growth in the region during the forecast period.

Competitive Landscape

Major players operating in the India beer market include United Breweries, Anheuser-Bush InBev SA NV, Arbor Brewing Company India, Carlsberg India Private Limited, Devans Modern Breweries Ltd., SOM Distilleries and Breweries Limited, Gateway Brewing Company, Delhi-6 Beer, Khemani Group, and Inbrew Beverages. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In October 2023 - India's Proost Beer, a homegrown brewery operating under Grano69 Beverages, has successfully raised INR 25 crore (approximately USD 3 million) in its pre-Series A funding round, a combination of equity and debt. Investors include Chimes Group, The Chennai Angels, India Accelerator, Hyderabad Angels, and Mumbai Angels. Proost, currently present in Delhi, Punjab, Uttar Pradesh, and Kerala, plans to utilize the funds to expand its production capacity and venture into new markets.

• In July 2023 - Indian craft beer manufacturer Lone Wolf expanded its product range with the launch of two new variants, Alpha and Mavrick. The company, part of Onkara Beverages & Hospitality, unveiled the 100% malt lager Mavrick and the Belgian Wit bier Alpha at an event in New Delhi. Both beverages have an alcohol by volume of less than 5%. Lone Wolf aims to provide consumers with a broader range of choices, capitalizing on the expanding party culture in Hyderabad and the growing popularity of low-alcohol beverages in India.

Scope of the Report

By Product type

• Standard Lager

• Premium Lager

• Specialty Beer

By Production

• Macro-Brewery

• Micro-Brewery

By Flavor

• Flavored

• Non-flavored

By Distribution Channel

• Supermarkets & Hypermarkets

• On-Trades

• Specialty Stores

• Convenience Stores

By Region

• North India

• South India

• East India

• West India

1. Research Framework
   1. Research Objective
   2. Flavor Overview
   3. Market Segmentation
2. Executive Summary
3. India Beer Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Changing lifestyle of consumers
         2. Rising expenditure capacities of the consumers
      2. Restraints
         1. Stringent regulations regarding production, distribution, and sale of alcoholic beverage
         2. Increasing health consciousness
      3. Opportunities
         1. Rising disposable incomes
         2. Increasing online sales and e-commerce platforms expansion
      4. Challenges
         1. Competition with other alcoholic beverages
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. India Beer Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Product type
         1. Standard Lager
         2. Premium Lager
         3. Specialty Beer
         4. Others
      2. By Production
         1. Macro-Brewery
         2. Micro-Brewery
         3. Others
      3. By Flavor
         1. Flavored
         2. Non-flavored
      4. By Distribution Channel
         1. Supermarkets and Hypermarkets
         2. On-Trades
         3. Specialty Stores
         4. Convenience Stores
         5. Others
      5. By Region
         1. North India
         2. South India
         3. East India
         4. West India
5. North India Beer Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Product type
      2. By Production
      3. By Flavor
      4. By Distribution Channel
6. South India Beer Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Product type
      2. By Production
      3. By Flavor
      4. By Distribution Channel
7. East India Beer Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Product type
      2. By Production
      3. By Flavor
      4. By Distribution Channel
8. West India Beer Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Product type
      2. By Production
      3. By Flavor
      4. By Distribution Channel
9.  Competitive Landscape
   1. List of Key Players and Their Offerings
   2. India Beer Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operation Channel Parameters
   4. Key Strategic Development (Mergers, Acquisitions, Partnerships, etc.)
10. Impact of Covid-19 on India Beer Market
11. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
    1. United Breweries
    2. Anheuser-Bush InBev SA NV
    3. Arbor Brewing Company India
    4. Carlsberg India Private Limited
    5. Devans Modern Breweries Ltd.
    6. SOM Distilleries and Breweries Limited
    7. Gateway Brewing Company
    8. Delhi-6 Beer
    9. Khemani Group
    10. Inbrew Beverages
    11. Other Prominent Players
12. Key Strategic Recommendations
13. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3. Market Breakdown & Data Triangulation
       1. Secondary Research
       2. Primary Research
    4. Breakdown of Primary Research Respondents, By Region
    5. Assumption & Limitation

*Financial information of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

List of Figures

Figure 1       India Beer Market Segmentation         

Figure 2       India Beer Market Value Chain Analysis        

Figure 3       Company Market Share Analysis, 2022                                               

Figure 4       India Beer Market Size, By Value (USD Billion), 2019–2029

Figure 5       India Beer Market Share, By Product type, By Value, 2019–2029

Figure 6       India Beer Market Share, By Production, By Value, 2019–2029

Figure 7       India Beer Market Share, By Flavor, By Value, 2019–2029

Figure 8       India Beer Market Share, By Distribution Channel, By Value, 2019–2029

Figure 9       India Beer Market Share, By Region, By Value, 2019–2029

Figure 10     North India Beer Market Size, By Value (USD Billion), 2019–2029

Figure 11     North India Beer Market Share, By Product type, By Value, 2019–2029

Figure 12     North India Beer Market Share, By Production, By Value, 2019–2029

Figure 13     North India Beer Market Share, By Flavor, By Value, 2019–2029

Figure 14     North India Beer Market Share, By Distribution Channel, By Value, 2019–2029

Figure 15     South India Beer Market Size, By Value (USD Billion), 2019–2029

Figure 16     South India Beer Market Share, By Product type, By Value, 2019–2029

Figure 17     South India Beer Market Share, By Production, By Value, 2019–2029

Figure 18     South India Beer Market Share, By Flavor, By Value, 2019–2029

Figure 19     South India Beer Market Share, By Distribution Channel, By Value, 2019–2029

Figure 20     East India Beer Market Size, By Value (USD Billion), 2019–2029

Figure 21     East India Beer Market Share, By Product type, By Value, 2019–2029

Figure 22     East India Beer Market Share, By Production, By Value, 2019–2029

Figure 23     East India Beer Market Share, By Flavor, By Value, 2019–2029

Figure 24     East India Beer Market Share, By Distribution Channel, By Value, 2019–2029

Figure 25     West India Beer Market Size, By Value (USD Billion), 2019–2029

Figure 26     West India Beer Market Share, By Product type, By Value, 2019–2029

Figure 27     West India Beer Market Share, By Production, By Value, 2019–2029   

Figure 28     West India Beer Market Share, By Flavor, By Value, 2019–2029

Figure 29     West India Beer Market Share, By Distribution Channel, By Value, 2019–2029                                               

List of Tables      

Table 1        India Beer Market Size, By Value (USD Billion), 2019–2029

Table 2        India Beer Market Share, By Product type, By Value, 2019–2029

Table 3        India Beer Market Share, By Production, By Value, 2019–2029

Table 4        India Beer Market Share, By Flavor, By Value, 2019–2029

Table 5        India Beer Market Share, By Distribution Channel, By Value, 2019–2029

Table 6        India Beer Market Share, By Region, By Value, 2019–2029

Table 7        North India Beer Market Size, By Value (USD Billion), 2019–2029

Table 8        North India Beer Market Share, By Product type, By Value, 2019–2029

Table 9        North India Beer Market Share, By Production, By Value, 2019–2029

Table 10      North India Beer Market Share, By Flavor, By Value, 2019–2029

Table 11      North India Beer Market Share, By Distribution Channel, By Value, 2019–2029

Table 12      South India Beer Market Size, By Value (USD Billion), 2019–2029

Table 13      South India Beer Market Share, By Product type, By Value, 2019–2029

Table 14      South India Beer Market Share, By Production, By Value, 2019–2029

Table 15      South India Beer Market Share, By Flavor, By Value, 2019–2029

Table 16      South India Beer Market Share, By Distribution Channel, By Value, 2019–2029

Table 17      East India Beer Market Size, By Value (USD Billion), 2019–2029

Table 18      East India Beer Market Share, By Product type, By Value, 2019–2029

Table 19      East India Beer Market Share, By Production, By Value, 2019–2029

Table 20      East India Beer Market Share, By Flavor, By Value, 2019–2029

Table 21      East India Beer Market Share, By Distribution Channel, By Value, 2019–2029

Table 22      West India Beer Market Size, By Value (USD Billion), 2019–2029

Table 23      West India Beer Market Share, By Product type, By Value, 2019–2029

Table 24      West India Beer Market Share, By Production, By Value, 2019–2029   

Table 25      West India Beer Market Share, By Flavor, By Value, 2019–2029

Table 26      West India Beer Market Share, By Distribution Channel, By Value, 2019–2029                                               

Table 27      United Breweries Company Overview

Table 28      United Breweries Financial Overview

Table 29      Anheuser-Bush InBev SA NV Company Overview

Table 30      Anheuser-Bush InBev SA NV Financial Overview

Table 31      Arbor Brewing Company India Company Overview

Table 32      Arbor Brewing Company India Financial Overview

Table 33      Carlsberg India Private Limited Company Overview

Table 34      Carlsberg India Private Limited Financial Overview

Table 35      Devans Modern Breweries Ltd. Company Overview

Table 36      Devans Modern Breweries Ltd. Financial Overview

Table 37      SOM Distilleries and Breweries Limited Company Overview

Table 38      SOM Distilleries and Breweries Limited Financial Overview

Table 39      Gateway Brewing Company Overview

Table 40      Gateway Brewing Company Financial Overview

Table 41      Delhi-6 Beer Company Overview

Table 42      Delhi-6 Beer Financial Overview

Table 43      Khemani Group Company Overview

Table 44      Khemani Group Financial Overview

Table 45      Inbrew Beverages Company Overview

Table 46      Inbrew Beverages Financial Overview