India Beer Market Outlook, Growth, Price Trends, Demand, and Research Report

Market Overview:

The India beer market size reached INR 414.7 Billion in 2023. Looking forward, IMARC Group expects the market to reach INR 781.2 Billion by 2032, exhibiting a growth rate (CAGR) of 7.1% during 2024-2032. The increasing preference for alcoholic beverages among consumers, especially millennials, during celebrations and social and cultural gatherings, the changing lifestyle of consumers, and the easy availability of products through online platforms represent some of the key factors driving the market.

The Rising Brand Consciousness Regarding Imported and Premium Beers Augmenting the Market Growth

Increasing brand consciousness regarding imported and premium beers is a key driver of growth in the Indian beer market. Consumers are increasingly interested in trying new and unique beers and are willing to pay a premium for high-quality, well-known brands. One of the major factors driving this trend is rapid globalization as it makes it easier for consumers to access a wider variety of beer worldwide. As a result, consumers are more knowledgeable about different beer styles and seek new and interesting options. Another factor driving growth in the premium beer market is the rise of craft brewing. Craft breweries are known for producing high-quality, unique beers that often command a higher price point than mass-produced beers. As a result, consumers are increasingly willing to pay more for these types of beers. The rise of e-commerce has also made it easier for consumers to purchase imported and premium beers. Online retailers provide a wider variety of beers than brick-and-mortar stores and often offer competitive pricing. Finally, social media has played a significant role in driving brand consciousness in the beer market. Consumers are increasingly sharing their experiences and opinions about different beers on social media platforms, which can help to raise awareness of lesser-known brands and drive demand for them.

Competitive analysis such as market structure, market share by key players, player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. The market structure is concentrated, with several large-, medium- and small-scale players currently operating in the India beer industry. The volume of new entrants in the beer industry is low due to high brand development and marketing cost, low market growth, long licensing, and an approval process. Manufacturers require economies of scale to remain profitable and high capital investments.

What is Beer?

Beer is an alcoholic beverage produced by brewing a combination of malted barley, rice, corn, and other cereals. The ingredients used in beer manufacturing include cereals, hops, yeast, water, adjuncts, and additives. While barley is the most commonly used grain for making beer, the brewmaster may select other grains. The beer production process involves several stages, including germination of the grains, malting, mashing, lautering with water, brewing in a brewer kettle with hops, followed by fermentation, clarification, priming, pasteurization, and carbonation. The robust growth of beer market in India can be attributed to the rising health consciousness of the population. The alcoholic beverage manufacturers aim to cater to the growing health consciousness by making it a major marketing objective to sustain the industry's growth momentum in India.

The COVID-19 Impact:

During the pandemic, breweries experienced a significant reduction in production and were forced to close their taprooms and dining rooms due to lockdowns. The closure of production sites resulted in substantial losses of raw materials and finished products that could not reach retail. The pandemic also disrupted the procurement of raw materials, shut down factories, and led to a production shortage. The shortage of manpower in manufacturing industries due to reverse migration and disruptions in the supply chain, including inter-state and inter-border transportation bans, further impacted the beer market in India. The restrictions on on-road movement disrupted the distribution of beers and raw materials. However, leading beer companies strengthened their logistics and transport services, which slowly helped regain the market post-pandemic. Although opportunities emerged for premiumization, local provenance, and online sales, the on-premises side of the industry, such as hotels, restaurants, bars, pubs, and microbreweries, faced continued challenges due to the ban on on-premises liquor consumption during the nationwide lockdown. The pandemic led to job losses, salary cuts, and lower disposable incomes, which reduced the pace of the shift to beers and premium beer categories in the short term. However, the outlook for beer remains promising in the medium to long term. The Indian beer industry suffered during the first and second waves of COVID-19 but saw a quick revival post-pandemic. The industry evolved from manufacturing standard beers to flavored and various beers in line with changing consumer preferences. The beer industry has been moving smoothly in India for decades, as beer consumption has always been associated with friendly gatherings and parties.

India Beer Market Trends:

The growth of the beer market in India can be attributed to the increasing preference for alcoholic beverages, particularly among millennials, during various social and cultural events. This trend is supported by consumers' changing lifestyles and rising brand consciousness regarding premium and imported beers. Furthermore, the adoption of canned beer due to its longer shelf-life and convenient handling and transportation is positively impacting the market growth. Innovations in product offerings, such as freshly brewed and on-tap beers, and customized and tropical flavors like peach, strawberry, apple, lime, and pineapple from micro and craft breweries, are providing further momentum to the market growth. The market is also being driven by the easy availability of products through online platforms and the increasing purchasing power of consumers.

India Beer Industry Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the India beer market report, along with forecasts at the country and regional level from 2024-2032. Our report has categorized the market based on product type, packaging, production, alcohol content, flavor and distribution channel.

Product Type Insights:

• Standard Lager
• Premium Lager
• Specialty Beer
• Others
   

The report has provided a detailed breakup and analysis of the beer market based on the product type. This includes standard lager, premium lager, specialty beer, and others. According to the report, standard lager represented the largest segment as it contains low-calorie than product other types. In addition, the demand for standard lager has been largely influenced by its increasing popularity amongst health-conscious consumers who prefer to consume lesser amounts of alcohol.

Packaging Insights:

• Glass
• PET Bottle
• Metal Can
• Others
   

The report has provided a detailed breakup and analysis of the beer market based on the packaging. This includes glass, PET bottle, metal can, and others.

Production Insights:

• Macro-Brewery
• Micro-Brewery
• Others
   

The report has provided a detailed breakup and analysis of the beer market based on production. This includes macro-brewery, micro-brewery and others. Macro-breweries dominate the market as they can produce and distribute beer in large quantities. The market is gaining traction in India as disposable incomes rise, low-alcohol beverages become more popular, and social acceptance increases. Also, the introduction of new low-alcohol beer variations and technological advancements are driving the market expansion. The continuous innovations by beer manufacturers in terms of flavors and quality is widening the variety of beer available to the Indian population. The wider choice is catering to a broader target audience and resulting in increased demand for the industry. Moreover, the introduction of online ordering and the simplicity of doorstep delivery in certain states may boost the industry even further.

Alcoholic Content Insights:

• High
• Low
• Alcohol Free
   

The report has provided a detailed breakup and analysis of the beer market based on alcoholic content. This includes high, low, and alcohol free. The high alcohol content in beers is presently dominating the market. High-alcohol beer contains more than 6% alcohol by volume (ABV). The high-alcoholic content beer market is expanding as consumers associate high alcohol content with premium beers due to the perception that premium items have a superior taste and are produced from higher-quality raw materials than other products. Additionally, with the rise in popularity of craft breweries and the acquisition of such breweries by large-scale industry and investment companies, the growth in consumption of higher alcohol content beer has increased.

Flavor Insights:

• Flavored
• Unflavored
   

The report has provided a detailed breakup and analysis of the beer market based on flavor. This includes flavored and unflavored. At present, unflavored beer leads the market. The rising demand for unflavored beer can be attributed to the industry's strong performance of super premium and premium beer brands. In addition, the growing popularity of alcoholic beverages among consumers during celebrations and social and cultural gatherings is also boosting the market in the country. Furthermore, expanding urbanization enhances the stress level of young adults, resulting in higher beer consumption and a positive impact on the market.

Distribution Channel Insights:

• Supermarkets and Hypermarkets
• On-Trades
• Specialty Stores
• Convenience Stores
• Others
   

The report has provided a detailed breakup and analysis of the beer market based on distribution channels. This includes supermarkets and hypermarkets, on-trades, specialty stores, convenience stores, and others.

Region Insights:

• North India
• West and Central India
• South India
• East India
   

The report has also provided a comprehensive analysis of all the major regional markets, which include North India, West and Central India, South India, and East India. According to the report, South India was the largest market for beer. The party culture is slowly picking up in Hyderabad. The state and beer sales have always been high due to its lower price tag, easy availability, and a perception of low alcohol content. Thus, proliferating the market growth in the region. The consumption of alcohol in Andhra Pradesh has come down significantly in the last three years due to periodic price increases by the state government. Recently, Chennai has brought in a few Japanese and German brands to augment its wheat beer choices, which are expensive compared to the existing beer choices. Thus, continuing these product launches in the region is expected to aggravate the market growth further during the forecast period.

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the India beer market. Some of the companies covered in the report include:

• Anheuser-Bush InBev SA NV
• Arbor Brewing Company India
• B9 Beverages Private Limited
• Carlsberg India Private Limited
• Devans Modern Breweries Ltd.
• Gateway Brewing Company
• SOM Distilleries And Breweries Limited
• Sona Beverages Private Limited
• United Breweries Limited (Heineken N.V.)
• White Rhino Brewing Co.
   

Please note that this only represents a partial list of companies, and the complete list has been provided in the report.

Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India beer market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the India beer market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India beer industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.