Mumbai: Beer is gaining popularity among Indian consumers, with demand growing by around 10% in the financial year 2024-25. This marks a strong performance compared to the previous year, even as sales of stronger alcoholic beverages like whiskey, brandy, and rum have slowed down.
According to data from the Brewers Association of India (BAI), beer sales reached 450 million cases this fiscal, up from 405 million cases last year — when the growth was even higher at 16%. In contrast, the growth of spirits dropped to just 2.2% in 2024, down from 4.5% the year before. Final sales figures for spirits this year are yet to be released.
Industry experts say that Indian consumers, especially the younger crowd, are shifting towards milder alcoholic options like beer. “Alcohol is increasingly becoming socially acceptable, and consumers are now looking more for social bonding than just a ‘kick’,” said Vinod Giri, Director General of BAI. The association represents major brewers including United Breweries, AB InBev, and Carlsberg, which together control about 85% of the beer market in India.
With its young population, rising incomes, and tropical climate, India continues to be a key market for global beer brands. Reflecting this confidence, international brewers announced plans in February to invest over ₹3,500 crore in setting up new breweries in India in 2025 — their largest investment in more than 10 years.
Still, the country remains primarily a spirits market, with strong alcohol products accounting for about two-thirds of total alcohol consumption. Among beer drinkers too, strong beer dominates, making up nearly 80% of sales.
One major hurdle for beer in India is its high price. “Beer is taxed heavily — not based on its alcohol content but on the volume of liquid. As a result, it’s nearly twice as expensive in India as in the UK,” said Giri.
Moreover, frequent regulatory changes make the market difficult to navigate. For example, Karnataka, one of India’s largest beer-consuming states, has raised beer taxes three times in just the past 18 months.
