New Delhi: India’s beer market is witnessing a significant change in consumer preferences. For a long time, strong beer with higher alcohol content and lower prices dominated the market. However, interest in premium brands, better taste and a differentiated drinking experience is now increasing. The shift is also influencing company strategies and the share of the premium beer segment.
Beer Sales Continue to Grow
According to available industry data, beer sales in India grew at an average annual rate of around 12% between 2021 and 2025. During the same period, the gap between beer and spirits sales also narrowed considerably. However, the most important development is not just volume growth. A section of beer consumers is increasingly willing to spend more on premium products. This gives companies an opportunity to improve value per unit rather than relying solely on higher sales volumes.
Premium Beer Gains Share
India’s premium beer market is expanding rapidly. According to available data, the premium segment accounted for around 12% of total beer sales in 2021, rising to approximately 20% in 2025 and around 22% in 2026. Volume growth in this segment is estimated at around 30% annually. Several premium and super-premium beers are priced 30–50% higher than mainstream products, yet demand for these offerings continues to grow.
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Greater Focus on Taste and Experience
Changing consumer preferences are one of the key factors behind this shift. Particularly in urban markets, some consumers are no longer choosing beer solely on the basis of alcohol content or price. Taste, quality, brand image and drinking experience are becoming increasingly important considerations. In response, brewers are expanding their portfolios of premium and super-premium products. The market is also creating greater opportunities for craft and differentiated beer offerings.
Demand Trends Vary Across States
Beer demand is not growing uniformly across India. During the June quarter, beer sales increased by 42% in Maharashtra, 35% in Karnataka and 33% in Andhra Pradesh. In contrast, some markets, including Madhya Pradesh, Himachal Pradesh, Uttar Pradesh and Haryana, witnessed declines. This highlights the role of state-level taxation, pricing, supply conditions and local policies in shaping beer demand.
Premiumisation Creates New Opportunities
The strong and mainstream beer segments continue to have a large consumer base in India. Therefore, the growth of premium beer does not necessarily mean that traditional segments will disappear immediately. Instead, mainstream, strong, premium and craft beer are likely to coexist and grow alongside one another.
For brewers, this shift is significant because premium products can provide an opportunity to increase consumer spending and the value generated per bottle or can. In the coming years, competition in India’s beer industry could increasingly focus not only on volume, but also on brand strength, quality, taste and premium portfolios.
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