The Rise of Craft Beer Culture in India

Source: Brewer World

The craft beer industry in India is on the rise, with more and more consumers looking for unique and high-quality brews. This trend can be attributed to the growing middle class, the increasing popularity of beer as a drink, and the desire for local products.

One of the main drivers of the rise of craft beer culture in India has been changing consumer tastes. As Indians become more affluent and exposed to international cuisine and travel, they are developing a taste for more complex beers. This has created a market for craft beers that offer a wider range of flavors than the mass-produced lagers that have dominated the Indian beer market for decades.

At the same time, the growth of the middle class in India, as said earlier, has created a larger market for craft beer. As more people move into the middle bracket of society, they have more disposable income to spend on luxury items. This has created an opportunity for microbreweries to establish themselves and grow in a market that was previously dominated by large beer brands.

Another factor driving the growth of craft beer culture in India is the increasing interest in local products. This trend is part of a broader movement towards sustainability and environmentalism that has taken hold in India in recent years. Consumers are looking for products that are made using local ingredients and are produced in a sustainable and eco-friendly manner. Craft beer fits into this trend perfectly, as it is often made using locally sourced ingredients, giving them a distinct taste and a sense of authenticity.

More than that, according to a report by ResearchAndMarkets.com, the Indian beer market is projected to grow at a CAGR of 7.5% during the period 2021-2026. The report also indicates that the rise in disposable income and the growing trend of social drinking are driving the demand for beer in the country.

Consequently, in recent years, several microbreweries have sprung up across the country, particularly in metropolitan cities such as Mumbai, Bengaluru, and Delhi. These breweries offer a variety of craft beers, ranging from pale ales to stouts, and often have a rotating selection of seasonal brews.

The rise of the craft beer industry in India is also creating opportunities for businesses in related industries, such as hops and malt suppliers, packaging companies, and bar and restaurant owners. The craft beer industry is a boon for these businesses, as it offers a new revenue stream and the opportunity to tap into a growing consumer demand for high-quality, locally made products.

However, the craft beer industry in India still faces several challenges, including high taxes and regulatory barriers. The Indian government currently imposes a high excise duty on beer, which can range from 40-60% depending on the state. This makes it difficult for small breweries to compete with established brands. In addition, the regulatory framework for the craft beer industry in India is still evolving, which can create uncertainty for businesses.

Despite these challenges, the craft beer industry in India shows no signs of slowing down. With a growing consumer demand for unique and high-quality brews, and the emergence of new microbreweries across the country, the industry is poised for continued growth in the coming years.

In conclusion, the culture of craft beer India reflects growth. While there are certainly challenges that microbreweries face, the future looks bright for the craft beer industry in India. As more microbreweries establish themselves and more consumers develop a taste for craft beer, the market is likely to continue to expand and thrive.