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Beer Market in India 2021

Alcohol consumption has become a part of social interactions among the young people in India. The beer market is slowly gaining prominence, owing to an increase in disposable income, preference for low-alcohol beverage, and growing social acceptance. Some of the main players that operate in the market are Mohan Meakin Ltd., Arbor Brewing Company India, United Breweries Ltd. (UB Group), and B9 Beverages Pvt. Ltd. (Bira 91).

Market insights:
In terms of volume, the beer market was valued at 5,533.73 Mn ltrs in 2020 and is expected to reach 9,004.74 Mn ltrs by 2025, expanding at a compound annual growth rate (CAGR) of ~10.89% during the 2021 - 2025 period. Urbanization and change in societal perspective, along with the launch of new low- and no-alcohol variant beer, technological advancements are a few of the significant factors that propel market growth. Introduction of online order and ease of doorstep delivery in certain states are further driving the market. However, low per capita consumption rate, various government regulations, and high taxation policies in most of the states across India deter its growth.

Segment insights:

On the basis of product type, the market can be segmented into strong, mild, and craft beer. The strong beer segment contributed the largest revenue share in 2020. Craft beer is estimated to be the fastest-growing segment during the forecast period. The strong beer segment is expected to reach 5,728.16 Mn ltrs in terms of volume by 2025 continuing to be the dominant segment. The craft beer segment is expected to grow at a rate of 108.59% in terms of volume over the forecast period.

COVID-19 impact analysis:
During the initial stages of the COVID-19 pandemic, the overall market experienced a huge setback. The sale of alcoholic beverages was discontinued for about 40 days during the first two phases of the lockdown. The World Health Organization (WHO) associated alcohol consumption to weakening of immunity. This further demotivated consumers from buying beer even after the ban was lifted during the third phase of lockdown. Furthermore, introduction of COVID cess (an additional cess to fund extra spending in the wake of the pandemic) on liquor in various states, increased the prices of alcohol including beer by a high margin. This increase in price has led to the increased demand for low-cost inferior-quality beers over premium quality beers. However, one of the most significant positive impact of COVID-19 lockdown is the introduction of online sale of the beer in certain states, such as, Chhattisgarh, West Bengal, Maharashtra, and Punjab. This has increased the in-home consumption of all alcoholic beverages, including beer thereby increasing the sale.

Companies covered:
• Mohan Meakin Ltd.
• United Breweries Ltd. (UB Group)
• Arbor Brewing Company India
• B9 Beverages Pvt. Ltd. (Bira 91)
• Carlsberg India Pvt. Ltd.
• Gateway Brewing Company
• Himalayan Ales Pvt. Ltd. (White Rhino)
• Molson Coors India Pvt. Ltd.
• Sona Beverages Pvt. Ltd. (Simba Beer)
• Anheuser-Busch In Bev NV
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Beer Market in India 2021
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