NEW YORK, July 15, 2024 /PRNewswire/ — The beer market size in India is estimated to grow by USD 4.44 billion from 2023-2027, according to Technavio. The market is estimated to grow at a CAGR of 8.76% during the forecast period. Growth of online retailing of beer is driving market growth, with a trend towards increasing demand for premium beer. However, huge availability of substitute products for beer poses a challenge. Key market players include Anheuser Busch InBev SA NV, Arbor Brewing Co., Asahi Group Holdings Ltd., B9 Beverages Pvt. Ltd., BROUWERIJ DE BRABANDERE NV, Carlsberg Breweries AS, Devans Modern Breweries Ltd., Diageo Plc, Gateway Brewing Co. LLP, Heineken NV, KALS Distilleries Pvt. Ltd., Kati Patang, MAHOU SA, Mohan Meakin Ltd., Molson Coors Beverage Co., Som Distilleries and Breweries Ltd., Thai Beverage Public Co. Ltd., White Rhino Brewing Co., Carson Cumberbatch PLC, and SONA BEVERAGES PVT. LTD..
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Forecast period |
2023-2027 |
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Base Year |
2022 |
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Historic Data |
2017 – 2021 |
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Segment Covered |
Packaging (Bottles and Cans), Distribution Channel (Off trade and On trade), Type (Strong and Mild), and Geography (APAC) |
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Region Covered |
India |
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Key companies profiled |
Anheuser Busch InBev SA NV, Arbor Brewing Co., Asahi Group Holdings Ltd., B9 Beverages Pvt. Ltd., BROUWERIJ DE BRABANDERE NV, Carlsberg Breweries AS, Devans Modern Breweries Ltd., Diageo Plc, Gateway Brewing Co. LLP, Heineken NV, KALS Distilleries Pvt. Ltd., Kati Patang, MAHOU SA, Mohan Meakin Ltd., Molson Coors Beverage Co., Som Distilleries and Breweries Ltd., Thai Beverage Public Co. Ltd., White Rhino Brewing Co., Carson Cumberbatch PLC, and SONA BEVERAGES PVT. LTD. |
Key Market Trends Fueling Growth
The beer market in India is experiencing growth due to the rising demand for premium beer varieties. This trend is driven by the increasing per capita income, enabling consumers to afford higher-priced beer options. Premium beers, including craft beers, are preferred for their authentic taste and brand reputation. Heineken’s recent launch of Heineken Silver in September 2022 underscores this trend. The growth of the beer market in India is expected to continue, fueled by the expanding presence of premium beer brands.
The global beer market is experiencing notable trends in 2021. Well-known beer styles like Standard Lager, Premium Lager, Specialty Beer, Flavored, and Non-flavored continue to shape consumer preferences. Globalization has led to the expansion of Macro Breweries and Micro Breweries, with craft brewing gaining popularity due to its unique flavors and premium pricing. Online retailers and social media have increased brand awareness, while societal trends like disposable income, favorable taxation, and job losses impact beer consumption. Stringent regulations, production reductions, closure of taprooms, and disrupted supply chains due to lockdowns have affected both raw materials and finished products. Reverse migration and supply chain disruptions have led to premiumization and a shift towards on-premises establishments. Liquor consumption bans have further influenced consumer behavior. Segmental coverage includes On Trades, Specialty Stores, Convenience Stores, and e-commerce. High-quality brands from craft breweries are in demand, while mass-produced beers face competition. The industry remains dynamic, with ongoing challenges and opportunities.
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Market Challenges
- Beer faces significant competition from various substitutes in the market, including rum, vodka, whiskey, soft drinks, and energy drinks. While conventional alcoholic drinks serve the functional purpose of alcoholic beverages, non-alcoholic alternatives like soft drinks and energy drinks are gaining popularity due to their perceived health benefits and lower prices. The wide availability and affordability of these substitutes make them attractive options for consumers. Furthermore, government restrictions on alcohol advertising in India limit the marketing efforts for beer, providing an edge to non-alcoholic beverages. As a result, the availability of these substitutes may negatively impact the growth of the beer market during the forecast period.
- The beer market faces several challenges in various aspects of production and distribution. In brewing, issues like fermentation, clarification, priming, and pasteurization require constant attention. Production reduction due to manpower shortages in manufacturing industries affects breweries, leading to potential supply chain disruptions. Taprooms and dining rooms in breweries have been impacted by changing lifestyles and disposable incomes, especially among millennials. Procurement of raw materials and hops has become difficult due to disruptions in the supply chain. Canned beer with a longer shelf-life and convenient handling has gained popularity, while freshly brewed and on-tap beer continue to attract consumers. Tropical flavors and lower alcohol content are current beer market trends. Alcoholic beverages face competition from alcohol-free and flavored/unflavored beer. Breweries must adapt to these challenges by optimizing their processes, investing in automation, and exploring various packaging options such as glass, PET bottles, and metal cans. Macro brewery production focuses on high alcohol content, while micro breweries cater to low alcohol content and niche markets. The beer industry remains dynamic, requiring continuous innovation and flexibility.
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Segment Overview
This beer market market in India report extensively covers market segmentation by
- Packaging
- 1.1 Bottles
- 1.2 Cans
- 2.1 Off trade
- 2.2 On trade
- 3.1 Strong
- 3.2 Mild
1.1 Bottles- The beer market is witnessing a shift in packaging preferences, with consumers favoring lightweight metal cans and sustainable options over traditional glass bottles. While brown-colored glass bottles have been the norm, metal cans offer convenience and adaptability to various social situations. However, some consumers and traditional breweries still prefer glass bottles due to their association with the brewing art and absence of bisphenol A (BPA). In June 2022, Carlsberg introduced eco-friendly Green Fiber Bottles, which are non-transparent, unbreakable, biodegradable, and have a recognizable fiber structure. These bottles are made from sustainably managed wood fibers and feature an impermeable coating instead of a plastic seal. The bottle segment’s growth is anticipated to drive the beer market in India due to increasing consumer preference for sustainable packaging options.
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The global root beer market is witnessing steady growth, driven by rising consumer preference for non-alcoholic beverages and nostalgic flavors. Key players are innovating with unique formulations and natural ingredients to attract health-conscious consumers.
In contrast, the global craft beer market is booming, fueled by a growing appreciation for artisanal brews and diverse flavor profiles. Microbreweries and independent brewers are leading the charge, catering to an expanding base of beer enthusiasts seeking unique, high-quality, and locally-sourced products. Both markets are set to see continued expansion and innovation.
Research Analysis
The beer market has experienced significant growth due to globalization, making well-known alcoholic beverages accessible to consumers worldwide. Beer styles vary from traditional lagers and pilsners to modern craft brews, each with unique flavors and characteristics. Craft brewing has gained popularity with consumers seeking high-quality, artisanal beers, leading to premium pricing and a shift away from mass-produced counterparts. Online retailers and e-commerce platforms have made it easier for consumers to purchase their preferred brands, while social media has increased brand awareness and engagement. Ingredients like malted barley, rice, corn, cereals, hops, yeast, and water are essential in brewing beer, with each ingredient contributing to the final taste and texture.
Market Research Overview
The beer market is a well-known segment of the global alcoholic beverage industry, shaped by various trends and factors. Globalization has led to the spread of beer styles from different regions, giving rise to craft brewing and premium pricing. Online retailers and social media have increased brand awareness, while societal trends like disposable income, favorable taxation, and raw materials availability influence beer consumption. Production reductions and closure of taprooms due to stringent regulations, supply chain disruptions, and lockdowns have impacted macro and micro breweries alike. Reverse migration and job losses have affected manpower availability in manufacturing industries, leading to procurement challenges and distribution disruptions. Segmental coverage includes product type, such as Standard Lager, Premium Lager, Specialty Beer, and production processes like germination, malting, mashing, lautering, brewing, fermentation, clarification, priming, pasteurization, and carbonation. Ingredients like malted barley, rice, corn, cereals, hops, yeast, water, and adjuncts/additives are essential for beer production. Market trends include premiumization, on-premises establishments, liquor consumption bans, and e-commerce growth. Millennials’ preferences for high-quality brands, craft breweries, and mass-produced beers continue to shape the industry. The beer market faces challenges like manpower shortage, raw materials availability, and production reduction, but remains a dynamic and evolving sector.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Packaging
- Bottles
- Cans
- Distribution Channel
- Off Trade
- On Trade
- Type
- Strong
- Mild
- Geography
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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SOURCE Technavio
