Indian Beer Market Overview

•The Indian alcohol industry encompasses wine, beer, imported alcohol, India-made
foreign liquor, and India-made Indian liquor, experiencing robust growth.

•Legal drinking age varies by state, ranging from 18 to 25 years, with some states
prohibiting alcohol consumption.

•Despite restrictions, India had around 485 million legal drinking age individuals in 2013,
with an expected addition of 150 million consumers by 2018.

•The alcoholic beverage industry was considered a sunrise industry, with a projected
CAGR of 7.5% between 2017 and 2021.
•Indians spent over ₹2.5 trillion on alcohol in 2016, with revenues expected to reach
₹5.1 trillion and sales of 14 billion liters by the end of 2026.

•Beer was the fastest-growing segment in India's alcohol market.

•Factors driving consumption included improving living standards, globalization,

evolving lifestyles, and acceptance of alcohol.

•Urbanization and a growing young adult population contributed to the rise in

alcohol consumption.
 Challenges and Opportunities
• Challenges in the Indian beer market include:

•High taxation on beer compared to other alcoholic beverages, hindering beer

consumption.

•Complex regulations and state-specific restrictions leading to price increases.

•Prohibition in some states, government policies like demonetization and the introduction
of GST.

•An overly regulated industry with numerous alcohol-specific taxes.

•Limited market infrastructure with a low ratio of outlets per consumer.

 • Restrictions on the movement of beer between states and the need for export and
import licenses.

•Despite challenges, Bira 91, a craft beer brand, experienced significant growth.

•Demand for Bira 91 White exceeded supply, leading to supply chain issues.

•The company lowered prices and invested in an efficient supply chain.

•Bira 91 faced challenges in defining its marketing strategy.

•The dilemma: Sustaining growth, expanding globally, retaining investor confidence, and
enhancing the beer-drinking experience in India and beyond.