Beer companies are gearing up for a strong summer, hoping for a sales boost after two challenging years. In 2023, unexpected rains dampened demand, and in 2024, the national elections led to alcohol bans in several states during peak sales months. However, this year’s forecast of above-normal heatwaves has brewers optimistic about a 7-10% growth—provided state excise policies don’t cause supply disruptions.
Major players like United Breweries (which makes Kingfisher), AB InBev (Budweiser), and boutique brands have already started ramping up inventory, anticipating a surge in demand. “From a demand perspective, we don’t see any issues this summer,” said Vivek Gupta, MD & CEO of United Breweries. “However, we are concerned about some states increasing duties.”
Rising Demand, But Supply Challenges Persist
Beer sales in India heavily depend on summer, as people reach for chilled drinks to beat the heat. The India Meteorological Department (IMD) has predicted an intense summer after an unusually warm February, prompting companies to stock up early. AB InBev has already reported rising demand for Budweiser and other brands in Maharashtra, Karnataka, Uttar Pradesh, Telangana, West Bengal, and Goa.
The Indian beer market is largely dominated by Heineken, AB InBev, and Carlsberg, which together control nearly 80% of total sales. The Brewers Association of India estimates that beer sales will reach 430 million cases in 2024-25, up from 410 million in the previous year.
State Regulations Could Disrupt Supply
Despite the optimistic outlook, beer companies are keeping an eye on state excise policies, which are revised annually in many states. Changes in licensing rules often require companies to re-register brands and update labels, leading to logistical bottlenecks. Industry experts warn that these regulatory delays could cause temporary shortages just as demand peaks.
Most states follow an April-March excise cycle, meaning breweries must renew approvals at the start of summer. However, Telangana and Andhra Pradesh follow an October-September schedule. “New regulations and licensing requirements often create temporary supply chain disruptions,” said Vinod Giri, Director General of the Brewers Association of India.
With the heat rising and demand picking up, beer companies are hoping for a smooth summer season—one without unexpected policy roadblocks.
