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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