Beer Sales in Delhi Show Growth, But Challenges Remain
Beer sales in Delhi have seen a notable recovery this year, bouncing back from a tough 2021 when sales dropped by more than a third. Between April 1 and September 30, 2024, beer consumption in the city grew by around 7% compared to the same period in 2023. During these summer months, Delhi residents consumed nearly 46 crore litres of beer, or about 60 lakh cases. In comparison, summer beer consumption in 2021 was only 4.3 crore litres.
However, despite this growth, challenges persist in the local beer market. According to industry experts, the availability and quality of beer in Delhi are still major concerns. Many popular and well-known brands are often hard to find at retail outlets, with lesser-known brands filling the shelves. This issue is compounded by problems such as the lack of “cold” beer during peak demand periods, small store sizes limiting stock, and some companies diverting products to states with higher profit margins.
Beer makes up over a third of the total alcohol sold in Delhi, but experts believe its full potential is not being realized. With Delhi’s intense heat and high humidity, beer consumption could be higher if the supply chain and retail conditions improve.
In other parts of India, beer consumption is also rising. In Karnataka, for example, beer sales grew by 14% between April and September, reaching nearly 204 crore litres. Uttar Pradesh also saw an 11.7% increase. However, some states like Goa and Haryana saw a decline in sales during the same period.
In Delhi, beer consumption typically rises in March and peaks in June due to the summer heat, but sales started to dip in July and saw a sharp 32% decline in September compared to the same month last year. Government sources suggest this drop may have been caused by technical issues with the software that regulates liquor sales in the city, which led some consumers to buy beer from neighboring states like Haryana and Uttar Pradesh, where prices are lower and more brands are available.
Another challenge for beer sales in Delhi is the size of retail outlets. Many liquor stores in the city are small and cannot stock large quantities of beer. Additionally, some stores still lack chillers, meaning customers can’t always buy cold beer, which is preferred, especially in the hot summer months.
The Delhi government is reportedly working to improve the situation by encouraging the development of larger, premium liquor stores that offer a better variety of brands, more stock, and better service.
Overall, while beer sales in Delhi have improved, the city’s retail infrastructure and stock quality continue to pose challenges for the industry.
