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Business Economy


With rising demand for craft beer, shift from industrial producers to local producers

New Delhi, Nov 14 (UNI) With the rising demand for craft beer, there has been a shift from industrial producers to local producers, and recently to bottled craft beer.
In the last two decades, market share of beer by value has increased to 25 per cent driven by a growing middle-class segment, rising affluence of youth and urbanisation.
The Microbrewery sector emerged in 2009-10 with the inception of Doolally and has grown from 20
microbreweries in 2012-13 to over 200 microbreweries across India. Some of the other early entrants in craft beer market were Independence Brewing Co, Toit Microbrewery, Gateway Brewing Co, Geist,
and White Owl Brewery, amongst others.
The Indian alcohol market is third largest and one of the fastest growing in the world. It is expected to
grow by 25 per cent to USD 41 billion by 2022, according to Euromonitor.

The alcoholic beverage market can be classified into three classes: beer, wine and spirit and beer is the second most popular alcoholic beverage after whisky, in India.
A decade old Indian craft beer industry is at a nascent stage with a market share of around 2-3 per cent of India’s beer market (USD 7 billion) against 12 per cent in the US. The All India Brewers Association estimates sales of craft beers to grow at 20 per cent y-o-y, which is higher than 5-7 per cent y-o-y growth in the beer market.
Over 30 per cent of India's population lives in the urban regions that have witnessed steady growth in
restaurants, pubs and a more recent phenomenon, the brewpubs. Growth is driven by millennials who
find craft beer more authentic and premium, compared to regular lagers.
Alcohol is a state-administered subject in India. While states like Gujarat, Bihar, Nagaland, Manipur
and Mizoram have imposed a ban on alcohol, other such as Maharashtra, Punjab, Tamil Nadu, Goa,
West Bengal, Himachal Pradesh, Odisha, Assam and Telangana allow setting up of microbreweries.
State Governments have allowed setting up of microbreweries at hotels and restaurants and in 2019, Uttar Pradesh has daily production capped at 600 litres while Delhi has production capped at 500 litres per day.
Strong growth in the sector has paved way to new opportunities like franchisee model. Brands such as Punjab-based, The BrewMaster Micro-Brewery and US-based World of Beer have started franchising their microbreweries in India.
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