Beer industry to grow at 7.5% between 2017 and 2021

The Dollar Business Bureau

India’s beer industry is slated to grow at an annual growth rate of 7.5% between 2017 and 2021, as rising disposable incomes of the middle-class segment will translate into higher spending, according to a recent report.

Last year, India's beer consumption stood at 4.6 litres per capita as against 57 litres per capita of fast-emerging economies in Asia. 

Several states have imposed their own sets of regulations related to the sale of alcohol, in addition to licensing restrictions, excessive localised taxes and a countrywide restriction on advertising of alcoholic drinks, which has somewhat hit the industry’s growth. Despite that, this sector would continue to attract investments from both the domestic and the foreign beer makers, according to BMI Research’s "outlook for India's beer market" report. 

"We believe India holds significant long-term growth potential as a beer-drinking culture is growing in momentum. We expect to see increasing levels of investment into the market from both local and global players over our forecast period," the report said. 

According to the report, the burgeoning middle class with high disposable incomes will lead to greater spending on beer, which is relatively cheaper and more widely available for the general population." 

According to the All India Brewing Association, sales of craft beer in India is growing at 20% y-o-y with over 80 microbreweries now in operation, as against just two in 2008.