New Delhi: AB InBev, the world’s largest brewer, has recorded stronger growth than India’s overall beer industry during the first half of the year, with premiumisation emerging as a key driver of demand. The company’s strong performance has also helped India become one of Budweiser’s top three markets globally in June, behind the United States and China.
AB InBev President Kartikeya Sharma said the company recorded strong double-digit growth during January-June despite supply chain disruptions linked to the West Asia conflict and shortages of aluminium beverage cans. The company’s premium beer portfolio grew by around 20% during the period, supported by regulatory changes in key markets such as Maharashtra and Karnataka.
While India’s overall beer industry grew by around 12% in the first half of the year, AB InBev grew at a faster pace and accounted for approximately 20% of the overall beer market, which stood at around 20 million hectolitres during the period. The company’s performance was supported by continued consumer interest in premium beer brands and changing consumption preferences.
Premium products currently account for around 65% of AB InBev’s volumes, with brands such as Budweiser, Corona and Hoegaarden serving as important growth drivers. The company is also seeing increasing demand for cans, which are gaining popularity in India because of their convenience and portability. Cans account for around 28% of the overall beer market, while AB InBev’s share of the can segment is above 40%.
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Sharma said the beer category is performing particularly well in states where taxation has been normalised and beer and spirits operate on a more level playing field. Maharashtra recorded growth of around 40%, according to Sharma, while the company sees a different trend emerging in the hard spirits segment.
Another significant development is the growing demand for lower-alcohol beer. Karnataka has emerged as an important market for testing this trend, with beer sales below 5% ABV doubling to around 20% of the category within three months. The state also introduced a requirement in May for manufacturers to declare alcohol content to the first decimal place.
According to Sharma, the regulatory changes could allow brewers to develop products for different consumption occasions, including beers with alcohol levels of 2%, 2.5% or even 0% ABV. He said AB InBev intends to explore this opportunity in Karnataka as consumers increasingly seek greater choice and variety across occasions and price points.
The company’s strategy reflects broader changes in India’s beer market, where premiumisation, cans and low-ABV products are becoming increasingly important. AB InBev’s focus on these segments could further shape the evolution of beer consumption as Indian consumers explore more brands, formats and alcohol strengths.
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