Premium beers are becoming increasingly popular in India, with imported brands like Guinness, Peroni, and Coopers flying off store shelves within days. Consumers are willing to pay higher prices for unique beers that offer new flavors and ingredients, such as craft beers and premium local brews. For example, Guinness, a well-known stout from Ireland, is not brewed in India, but it still sells out quickly when available.
The Indian beer market is being shaped by microbreweries and investments from international brands like Heineken and Kirin. According to the International Spirits & Wines Association (IWSR), premium and super-premium beers (priced above Rs 275 per liter) now make up 11.8% of total beer sales in India, up from 8.4% in 2019. On the other hand, the share of more affordable beers (less than Rs 220 per liter) has decreased.
While strong beers still make up 70% of the market, brewers are experimenting with lighter beers, wheat beers, and new flavors. Companies are also introducing unique packaging styles to attract premium consumers. For example, Som Distilleries launched a new premium beer under its Woodpecker line, using imported ingredients and offering a 30-day brewing process.
Craft beers are also gaining traction, with brands like Geist Brewing Co offering a variety of styles such as wheat beers, stouts, and pale ales. These beers are often 2.4 to 2.6 times more expensive than mass-market options due to their use of high-quality ingredients like hops, orange peel, and coriander.
AB InBev, the maker of Hoegaarden, Budweiser, and Corona, leads the premium beer space, while United Breweries offers both value and premium beers. The craft beer segment is growing rapidly, with some segments seeing 40-42% annual growth, far outpacing the 17% growth in mass-market beers.
However, some industry experts believe that beer has limits when it comes to being “premiumized” like spirits or wines. Beer is generally seen as a straightforward product, and while premium beers may be priced higher, there’s only so much that can be done to elevate it beyond a certain point.
