Beer in India

PROSPECTS

Growing preference for smooth tasting beer

Indian consumers are increasingly opting for beer which has a smooth and light taste, finding it easy to drink when socialising with friends. Light tasting beers are also becoming popular among those drinking alcohol for the first time.

Manufacturers introduce low-calorie beers for health-conscious consumers

Indians are becoming increasingly health-conscious, paying more attention to the nutritional value and calorie content of the foods and drinks they consume, with many being keen to try new alcoholic drinks which are seen as less harmful to health amidst the rising prevalence of conditions such as obesity, high blood pressure and diabetes. With many Indians consuming beer on a regular basis, healthier variants are proving very appealing.

Imported premium lager the best performing category

Indian consumers are increasingly opting for premium imported lagers thanks to rising disposable incomes and a desire to experience new flavours from different countries. This trend in primarily being seen in first-tier cities, driven by consumers who have returned home from abroad and are aware of certain brands.

COMPETITIVE LANDSCAPE

UB Group remains the clear category leader

UB Group remained the clear leader in beer in 2017. The company’s position can be attributed to the strength of its Kingfisher brand as well as the improved distribution of Kingfisher Ultra, Kingfisher Ultra Max and Heineken.

B9 Beverages and Carlsberg the best performers in 2017

B9 Beverages is a craft brewer which registered a huge increase in sales in 2017, albeit from a very low base. Having initially manufactured abroad, the company successfully raised funds from various private equity firms to start local production and improve its distribution.

Rise of craft beer and microbreweries driven by urbanisation

Demand for craft beer has been growing thanks to a consumer willingness to try out new products. This has resulted in the opening of many micro-breweries in first-tier cities.

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