Golmuri

The beer market in India is growing at more than 12% per annum! Who is driving this growth? Young Indians loaded with high disposable income are the backbone of the beer market in India.

The U.S. beer market has changed dramatically over decades. Earlier the beer market was run by Macro Brewers like Lager beers. Beer was sold in truck loads almost like commodities. Then in 1990s came the second generation which invloved micro brewers. High quality Ales, Stouts and porters. Now the US market has lived up to their expectations by changing the beer market dynamics once again. The US market is now shifting towards the specialty beer segment, craft beer. These beer are produced in modest quantities and sold at ultrapremium price. These beer brands are more like wine with alcohol contents upto 18%. They provide the experience of exclusivity and variety that has long appealed to oenophiles. With combined sales of $3.7 billion, they represent 3.2% of the US beer market.

Where is Indian beer market compared to the US market?

The Indian beer market started with Indian Pale Ale and now thriving on  macro brewers. Major players like UB, SAB, and other foriegn players  still live on Lager beer. Lately, many special beer like Belgiun Beer and  stout beer have entered the market. Giving signs of the changing beer  market in India. The constrain to these beer is the availability. These  brands are marketed only in some big retail outlets which are present  only in few cities of India. To reach the majority of the population the  perception of the people have to evolve. The Ban of Promotion of alcoholic drinks in India is another constrain. Promotion of a beer brand in India is really difficult. Another constrain is the complex State tax structure, which makes the pricing strategy of beer to change with states. e.g. New Delhi and Goa charge  lower tax compared to Karnataka and Tamil Nadu. It seems that India is still between the Micro and Macro Brewer stage.

However, looking at the recent infiltration of foriegn beer brands in India, the Indian Beer market tends to be changing. Lets hope to get a Fort beer in a year or so, at a remote place like Nagothane, India.

Rogues