How beer market is positioned in india The9
How beer market is positioned in india?
The beer
market in India is at its growth stage with major companies in the
market looking for further market expansion with introduction of new products
and by strengthening their distribution network. The market has been growing
majorly due to increase in number of youth population, higher disposable income,
rising preference of consumers for low alcohol beverages and others. Drinking
in bars is fast becoming a social phenomenon in cities such as Delhi, Mumbai
and Bangalore and with emergence of craft beers, the growth in beer consumption
increased rapidly. Besides the rising number of pubs and bars, another factor
which increased beer consumption was increase in premium modern trade and
on-premise outlets in metropolitan cities which increased the range of product
availability and improved the retail environment. Some state governments, for
instance Maharashtra, Uttar Pradesh and Kerala, offered separate licenses for
beer sale further boosting growth prospects for the industry.
The beer
industry has seen various merger and acquisition in India which has
concentrated market competition, further and further during the last five
years. For instance, acquisitions such as US-based Molson Coors Brewing Company
acquiring Mount Shivalik Breweries (Thunderbolt beer manufacturer) in 2015, AB
In Bev’s acquisition of SAB Miller in 2016 and so forth.
It is
observed that Indian beer market is facing multiple obstacles which have
influenced its growth potential, such as licensing restrictions, high taxes and
advertising bans and these could be reasons for low beer consumption per capita
in the country as compared to other regions in Asia Pacific region.
Over the
review period, India beer market observed a healthy growth in consumption
volume and grew at a CAGR of ~% between FY’2013-FY’2018.
India Beer Market Segmentation
By Beer Type (Strong, Mild and Craft Beer)
Strong beer was
witnessed to dominate India beer market during FY’2018 with a consumption
volume share of ~%, thus evaluated at ~ million liters. The manufacturers of strong
beer are trying to attract customers who normally drink country liquor and hard
spirits. The remaining volume share of ~% was collectively captured by mild
beer and craft beer in India beer market during FY’2018 which is slowly gaining
traction in the country and looks as quite promising segments.
By Type of Consumer Gender (Male and Female)
Men have a
greater share in the consumption pattern across India owing to higher
consumption per capita among men compared to women, other reason is, in many
regions, men are the only bread winners for their family and with much more
financial independence, they have more financial capability to spend on their
lifestyle choices as compared to women.
By Regional Sales (North, South, East and
West)
The southern
and western regions in India were witnessed to dominate the country’s market
with a collective volume share of ~% in FY’2018. The remaining ~% of volume
share in India beer market was captured by northern and eastern states during
FY’2018.
By Type of Distribution Channel (State/Government
Corporations, Distributors and Retailers)
Owing to stricter
regulations across various states in India, state/government corporations segment
dominated with a massive volume share of ~% of the total sales volume of beer in
India in FY’2018. It has been witnessed in the market that, L1 distributors
would prefer to push the product which would give them better margins over
others and therefore influenced consumption of some beer brands in some regions.
The remaining ~% volume share in India was grabbed by the distributors and
retailers network in FY’2018.
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Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
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