The Indian consumer preferences are ever-changing, and today, they are looking for home-grown alco-beverage options. Intrigued by its unique flavors that are grounded in Indian roots yet providing a sense of novelty, this industry is growing exponentially. Further, conscious living has become the norm for consumers, pushing them towards LABs & RTDs.

According to a research, the beer market is expected to grow annually by 8.17% (CAGR 2023-2027) with the average volume per person in the beer segment expected to amount to 3.39L in 2023. There is a lot of opportunity within this sector with new age bars, brewery, home grown beer brands popping up all across the country.

Quenching the Thirst

"Amidst a generational shift in drinking habits, young consumers are embracing new flavors across a diverse range of drinking occasions. They are moving away from traditional alcoholic beverages, and are open to experimenting with unique flavors, craft beers, artisanal cocktails, and low-calorie alternatives. At Bira 91, our ambition has been to bring new flavors and be the beer-of-choice for Indian consumers worldwide,” shared Ankur Jain, CEO, Bira 91, which recently launched ‘Imagined In India’ portfolio.

Sharing his view on the same, Atul Kumar Singh, Managing Director, Lone Wolf added, “The new age alco-bev brands are challenging the perception of foreign products being of premium quality. Thus, the premise wherein the consumers favoured ‘foreign’ products, is gradually shifting. People are now inclining towards organic and domestic products. This has primarily given rise to many Indian start-ups to surface and changing the very nature of the liquor game in India.”

The brand that is a new entrant in the beer market and is breaking the myth that strong beer is a cheap beer.

“We want to challenge this perception and are committed to bringing a premium drinking experience to all our consumers. We have launched two variants for now, which are made with quality ingredients like German Hops & Imported Barley Malts,” he added.

When the first brewpub was launched in India 10 years back, people were not aware of craft beer then. Craft beer had a huge demand in western countries, and people who travelled a lot abroad learned about craft beer from there. It was served in micro-breweries and restaurants in western countries and had a huge impact on Indians who were traveling abroad. It took a lot of time for the brewpub culture to come to India which created a space between the demand and supply in the market. All of sudden, corporates, doctors, engineers, HNIs, etc. got inclined toward craft beer which resulted in the mushrooming of micro-breweries in the country.  Micro-breweries also got a good response because craft beers were made of natural fruits and fruits that are fresh, unlike bottled beers that come with preservatives.

Innovation is the Key

“If you talk about innovations, at Brew Estate we have more than 100 types of beers and we are innovating with flavors every month. We are launching new beer every month, we have beers in more than 50 flavors like Kiwi, Green Apple, Rasberry, Mango, and Litchi. We are continuously keeping the consumers’ feedback and demand in our mind, also what kind of beer palates they need, low alcohol, and high alcohol, according to weather and according to season,” added Arundeep Singla, Chairman and Managing Director, Alcostar Group of Companies.

Talking about the same, Jain shared, “by building a robust innovation pipeline, we continue to launch new offerings ahead of consumer demand. Our Taprooms serve as the driving force of our innovation wagon, wherein we experiment with indigenous ingredients to launch a new flavor every week. Fuelled by the positive response from consumers, we brought the top-performing flavors into the market as part of our ‘Imagined In India’ portfolio. Recently, we have also expanded beyond beer with 'House of Bira 91', introducing the 'Hill-station' Hard Cider Ale and 'Grizly' Hard Seltzer Ale to appeal to a wider audience and drive growth in the premium beverage segment."

Similarly The Lone Wolf Strong is a high ABV beer. It’s one of the smoothest strong beer available in the market & does not leave a bitter aftertaste. This variant “goes down easy” unlike your ordinary strong beers. “Our second variant Lone Wolf Mild Lager is a full malt and allows you to take in the earthy tones. This particular variant is crispy & a perfect partner for your brunch sessions. Moreover, these carefully crafted beers are comparatively low in terms of additives, thus giving you beer in its most authentic form,” pointed Singh.

Restaurants is Winning the game

The ability of the new-age beer brands to adapt to the changing trends and customer tastes has given them an edge over others. The use of flavor in craft beer has been a game changer. Take a fruit-based beer and pale ales for example. The complementary flavour additions have significantly increased the number of beer enthusiasts and have opened up a whole new market that was previously untapped.

“Three things: Ambience, great food, and collaborations. Every branch of ours has a uniquely curated theme that ties in all the elements of nature i.e, Earth, Water, Air, Fire and Space. The surrounding greenery when combined innovative theme makes our ambience a class apart from the rest. We showcase the diverse and rich culture of this country by experimenting with local foods when designing our menu. At our JP Nagar outlet, we have collaborated with several breweries from across the country and abroad, giving our patrons a wide range of unique flavors to choose from,” shared Prasanna Kumar, Co-Founder, BLR Brewing Co.

Craft beer is growing at an incredible rate, with more and more breweries popping up every day. This growth is being driven by a change in consumer tastes, with people becoming more interested in trying new and interesting beers.

"There are a number of factors driving this trend. Firstly, people are becoming more aware of the huge range of different beers that are out there. With the rise of social media, it's easier than ever to find out about new breweries and styles of beer. Secondly, as people become more health conscious, they're looking for lighter options that don't sacrifice flavor. Craft beer often fits this bill perfectly," pointed Katiyar.

Sharing his view on the same, Singla mentioned, ‘It’s a globalized world where if there’s something new in any country we tend to get attracted to it and start looking out for the market where it fits well, India is a booming country as we are continuously growing in every field. I can say that the craft beer market is not so big but it is growing every day with 100% growth in the market and that’s why the international players, the big brands are coming into the market and we are going to the international market as well.”

He also mentioned that he is also planning to enter the US and Canadian markets this year and is opening three outlets of Brew Estate in Canada.

Pricing them Right

“There are a few things we’ve taken into account when pricing our beer; the cost of ingredients, competition, margins,” shared Katiyar who recently launched The Finch in Bangkok.

“We have the price ranging from INR 250 for 330 ml, INR 350 for 500 ml, and INR 600 for 1ltr, and if you talk about the beer tower it is nearly priced at INR 1200 and it varies in all the outlets, as craft beer is a bit costly as ingredients are being imported from countries like Belgium and Germany to name a few,” said Singla who keep five to six types of beers in each outlet like Wheat Beer, Rocky Road which is a red LA beer, IPA (Indian Pale Ale) Beer to name a few.

People are looking for something fun and flavorful when drinking. Craft beer is fresh and experimental, with a variety of styles and taste profiles. Unlike the usual carbonated lagers that mostly have the same taste across all the bottled beers. The industry is thriving thanks to a new emerging section of fans and presents a great opportunity for both national and international brewers, believed Kumar who has priced his beers at Rs 295+ taxes for a 500ml.