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Food & Beverages
Low alcohol content and rising social acceptance fuel India's beer market growth: Bonafide Research
The Indian beer market has experienced significant developments in recent years, driven by rapid urbanization, a rising middle class, youthful demographics, and evolving societal perspectives. The introduction of beers with lower alcohol content and diverse variants, coupled with technological advancements, has further propelled market growth. The advent of online ordering and the convenience of doorstep delivery in certain states have expanded distribution channels, enhancing consumer accessibility.
Despite these advancements, challenges persist, including low per capita consumption rates, stringent government regulations, and high taxation policies across various states, which impede the market's full potential. United Breweries, the country's largest beer producer, has expanded its Heineken franchise by introducing Heineken Silver, a light, easy-to-drink beverage suitable for social occasions.
Beer ranks among the most popular beverages globally, following water, tea, and coffee. In India, it is the most consumed drink after whisky. Beer production involves brewing malted barley, with alternatives like wheat, maize (corn), and rice also utilized. Historically, beer is considered one of the oldest and most widely consumed alcoholic drinks worldwide. In India, beer is particularly favored among corporate employees, youths, and women due to its lower alcohol by volume (ABV), resulting in less intoxication, and its relatively affordable pricing. Young Indians increasingly prefer beer because of its low alcohol content and its socially acceptable status.
According to the report 'India Beer Market Outlook, 2027-28' published by Bonafide Research, the market for beer grew immensely during the historic period. The Indian beer market is forecasted to grow at a Compound Annual Growth Rate (CAGR) of nearly 6% during the period 2027–28. Within the major segments of beer, i.e., strong beer and mild beer, India is primarily a strong beer-consuming nation. However, recently, the mild beer market is achieving high growth with increasing brands in the mild segment, as strong beer-producing firms enter the mild segment with mild brands. The significant market potential of the Indian beer market has also attracted many foreign brands. The new trend of craft beer has led to the substantial success of B9 Beverages’ Bira 91 and is expected to encourage many global players to enter the Indian craft beer market.
Beer generally contains an ABV of around 4% to 8%, contributing to its lower intoxicating effect, which is generally preferred by women and youths in India, enhancing its popularity among these demographics. While the average selling price (ASP) of whisky and other alcoholic beverages ranges between INR 250 to 600 rupees (excluding high-premium and super-premium brands) for a full bottle, the ASP of beer is approximately INR 100 rupees (excluding high-premium brands) for a full bottle, making it a cost-effective option for consumers. Consequently, beer is considered an excellent substitute for whisky and other alcoholic beverages, offering the experience of consuming alcohol at a reasonable cost without leading to rapid intoxication.
Major companies operating in the Indian beer market include United Breweries Limited, Carlsberg India Private Limited, Crown Beer India Private Limited, SABMiller India Limited, Mohan Meakin Limited, Molson Coors Cobra India Private Limited, B9 Beverages Private Limited, Devans Modern Breweries Limited, and SOM Distilleries and Breweries Limited.
Recent developments in the Indian beer market reflect both growth and challenges. United Breweries reported a 25% decline in its third-quarter profit, attributed to reduced consumer spending on its more affordable brands amid high inflation. The company's standalone profit before exceptional items and tax fell to 867.3 million rupees, down from 1.16 billion rupees the previous year. Despite a nearly 7% rise in revenue to 4.42 billion rupees, this growth was slower compared to previous periods. Affluent consumers continue to spend, prompting the launch of the higher-priced Amstel Grande beer. Additionally, United Breweries faced supply issues with Telangana due to delayed payments and lack of government price increase approvals. The company is majority-owned by Heineken.
Heineken announced a €1.5 billion share buyback following an 8.3% rise in annual operating profits to €3.5 billion, significantly surpassing expectations. The Dutch brewer's organic net revenues increased by 5% to nearly €30 billion, driven by strong demand for its premium brands and robust sales in regions like India, Brazil, Nigeria, and Mexico. The company's performance was accelerated by €600 million in productivity savings that supported increased marketing investments. Notably, the volume of its non-alcoholic Heineken 0.0 lager, Cruzcampo, and Inch's cider saw substantial growth. Despite these achievements, Heineken cautioned about potential macroeconomic challenges affecting consumer sentiment, particularly in Europe.
Despite these advancements, challenges persist, including low per capita consumption rates, stringent government regulations, and high taxation policies across various states, which impede the market's full potential. United Breweries, the country's largest beer producer, has expanded its Heineken franchise by introducing Heineken Silver, a light, easy-to-drink beverage suitable for social occasions.
Beer ranks among the most popular beverages globally, following water, tea, and coffee. In India, it is the most consumed drink after whisky. Beer production involves brewing malted barley, with alternatives like wheat, maize (corn), and rice also utilized. Historically, beer is considered one of the oldest and most widely consumed alcoholic drinks worldwide. In India, beer is particularly favored among corporate employees, youths, and women due to its lower alcohol by volume (ABV), resulting in less intoxication, and its relatively affordable pricing. Young Indians increasingly prefer beer because of its low alcohol content and its socially acceptable status.
According to the report 'India Beer Market Outlook, 2027-28' published by Bonafide Research, the market for beer grew immensely during the historic period. The Indian beer market is forecasted to grow at a Compound Annual Growth Rate (CAGR) of nearly 6% during the period 2027–28. Within the major segments of beer, i.e., strong beer and mild beer, India is primarily a strong beer-consuming nation. However, recently, the mild beer market is achieving high growth with increasing brands in the mild segment, as strong beer-producing firms enter the mild segment with mild brands. The significant market potential of the Indian beer market has also attracted many foreign brands. The new trend of craft beer has led to the substantial success of B9 Beverages’ Bira 91 and is expected to encourage many global players to enter the Indian craft beer market.
Beer generally contains an ABV of around 4% to 8%, contributing to its lower intoxicating effect, which is generally preferred by women and youths in India, enhancing its popularity among these demographics. While the average selling price (ASP) of whisky and other alcoholic beverages ranges between INR 250 to 600 rupees (excluding high-premium and super-premium brands) for a full bottle, the ASP of beer is approximately INR 100 rupees (excluding high-premium brands) for a full bottle, making it a cost-effective option for consumers. Consequently, beer is considered an excellent substitute for whisky and other alcoholic beverages, offering the experience of consuming alcohol at a reasonable cost without leading to rapid intoxication.
Major companies operating in the Indian beer market include United Breweries Limited, Carlsberg India Private Limited, Crown Beer India Private Limited, SABMiller India Limited, Mohan Meakin Limited, Molson Coors Cobra India Private Limited, B9 Beverages Private Limited, Devans Modern Breweries Limited, and SOM Distilleries and Breweries Limited.
Recent developments in the Indian beer market reflect both growth and challenges. United Breweries reported a 25% decline in its third-quarter profit, attributed to reduced consumer spending on its more affordable brands amid high inflation. The company's standalone profit before exceptional items and tax fell to 867.3 million rupees, down from 1.16 billion rupees the previous year. Despite a nearly 7% rise in revenue to 4.42 billion rupees, this growth was slower compared to previous periods. Affluent consumers continue to spend, prompting the launch of the higher-priced Amstel Grande beer. Additionally, United Breweries faced supply issues with Telangana due to delayed payments and lack of government price increase approvals. The company is majority-owned by Heineken.
Heineken announced a €1.5 billion share buyback following an 8.3% rise in annual operating profits to €3.5 billion, significantly surpassing expectations. The Dutch brewer's organic net revenues increased by 5% to nearly €30 billion, driven by strong demand for its premium brands and robust sales in regions like India, Brazil, Nigeria, and Mexico. The company's performance was accelerated by €600 million in productivity savings that supported increased marketing investments. Notably, the volume of its non-alcoholic Heineken 0.0 lager, Cruzcampo, and Inch's cider saw substantial growth. Despite these achievements, Heineken cautioned about potential macroeconomic challenges affecting consumer sentiment, particularly in Europe.
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