Indian beer drinkers are increasingly opting for strong beers over milder options, particularly in the premium segment, as consumers seek better value for money, industry experts say. The marginal price difference between strong and mild beers has further bolstered this trend, offering a higher alcohol content for nearly the same cost.
“Decades ago, Indian beer drinkers primarily consumed mild beers, with only a few brands dominating the market,” said Diwakaran Suryanarayana, Chief Operating Officer of SOM Distilleries and Breweries Ltd. “The introduction of stronger beers challenged this dominance, and consumers quickly recognized the better value proposition. For a slightly higher price, they could get a stronger brew with more kick.”
Cultural and Economic Influences Shape Preferences
India’s beer preferences stand apart from global trends due to cultural, climatic, and economic factors. While lighter beers such as lagers and pilsners are popular in international markets, Indian consumers gravitate towards lagers with an alcohol by volume (ABV) of 5% to 8%, catering to local palates and complementing spicy cuisines.
Unlike global markets where beer is often consumed casually or during meals, in India, it is primarily enjoyed at social gatherings and celebrations. “Strong beer aligns with Indian preferences for full-bodied flavors,” added Suryanarayana. “Globally, lighter beer styles like IPAs, stouts, and wheat beers gain attention for their unique flavors, but that diversity hasn’t yet translated fully to the Indian market.”
Strong Beer Dominates Indian Market
Strong beer commands a significant share of the Indian beer market. By FY18, strong beer had become the dominant segment, according to Ken Research, with nearly 80% of total beer sales attributed to strong brews, as per Niir Project Consultancy Services (NPCS). These beers, with an ABV of 6% to 8%, align with consumer demand for affordability and potency.
“The preference for strong beer among Indian consumers is deeply rooted in economic and cultural factors,” said Aditya Ishan Varshnei, CEO of Latambarcem Brewers. “Historically, beer in India has been perceived more as a functional drink offering a ‘kick’ than as a beverage for its experiential qualities.”
Global Trends Highlight Contrast
In contrast, beer markets in Europe and North America emphasize variety and experimentation, focusing on lighter, sessionable styles such as crisp lagers and hoppy IPAs. Craft beer culture in these regions prioritizes flavor exploration over alcohol content, fostering a broader appreciation for unique beer styles.
“In its modern context, beer has begun attracting diverse audience segments, including casual drinkers, women, and older consumers,” noted Vikram Bahl, Chief Marketing Officer of United Breweries Limited. “Globally, beer enjoys integration into daily social and dining experiences. In India, however, the relatively high price of beer compared to spirits makes it less accessible, despite growing acceptance.”
Market Growth and Future Prospects
India’s beer market is on a steady growth trajectory. An industry report by Allied Blenders & Distillers (ABD) projects the market will reach over 480 million cases by FY28, with a compound annual growth rate (CAGR) of 8% between FY23 and FY28. The market’s financial value is expected to rise from ₹98,000 crore by FY28, growing at a CAGR of 14.4% during the same period.
As consumer preferences evolve and the market matures, the prominence of strong beer underscores a unique intersection of cultural preferences and economic practicality in shaping India’s burgeoning beer landscape.
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