| REPORT ATTRIBUTE |
DETAILS |
| Historical Period |
2020-2023 |
| Base Year |
2024 |
| Forecast Period |
2025-2032 |
| Craft Beer Market Size 2024 |
USD 4,695 million |
| Craft Beer Market, CGR |
22.93% |
| Craft Beer Market Size 2032 |
USD 24,484.91 million |
Market Overview
The Craft Beer Market in India is expected to grow from USD 4,695 million in 2024 to USD 24,484.91 million by 2032, with a remarkable annual growth rate of 22.93%.
The Craft Beer Market in India is driven by increasing consumer demand for unique, flavorful, and premium alcoholic beverages, as well as growing awareness of craft brewing processes. Rising disposable incomes, changing lifestyles, and a shift toward more personalized and experiential drinking options are contributing to this growth. Additionally, the emergence of microbreweries and the growing trend of locally brewed beers are shaping consumer preferences. Younger generations, especially millennials, are leading the charge, seeking out craft beer for its distinct flavors and artisanal appeal. The expansion of e-commerce platforms and innovative marketing strategies are further fueling the market’s growth. Increasing interest in health-conscious beverages and low-alcohol options is also influencing market dynamics, as breweries cater to these evolving demands. As the craft beer culture continues to gain traction, coupled with favorable regulations, India’s craft beer industry is poised for substantial growth in the coming years.
The Craft Beer Market in India is expanding across various regions, with significant growth observed in Northern, Southern, Western, and Eastern India. Northern India, accounting for 30% of the market share, is led by cities like Delhi and Chandigarh. Southern India follows closely, with Bengaluru and Chennai driving approximately 25% of the market, while Western India, dominated by Maharashtra and Goa, holds the largest share at 35%. Eastern India, although smaller at 10%, is slowly gaining traction in cities like Kolkata. Key players such as United Breweries, Anheuser-Bush InBev SA NV, Arbor Brewing Company, Carlsberg India, and Gateway Brewing Company are making notable inroads in these regions, each catering to local preferences and expanding their distribution networks to meet growing consumer demand for craft beer.
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Market Insights:
- The Craft Beer Market in India is projected to grow from USD 4,695 million in 2024 to USD 24,484.91 million by 2032, with an annual growth rate of 22.93%.
- Consumer demand for unique, flavorful, and premium alcoholic beverages is a key driver, with growing awareness of craft brewing processes.
- Younger generations, especially millennials, are leading the market’s expansion, seeking personalized, artisanal drinking experiences.
- Increasing disposable incomes, changing lifestyles, and a shift toward premium drinking options are further fueling market growth.
- The rise of microbreweries and the increasing trend of locally brewed beers are reshaping consumer preferences.
- E-commerce platforms and innovative marketing strategies are expanding the reach of craft beer, allowing breweries to access broader consumer bases.
- Regional growth varies, with Western India leading at 35% market share, followed by Northern India at 30%, Southern India at 25%, and Eastern India at 10%.
Market Drivers:
Rising Consumer Demand for Unique Beverages:
The growing preference for unique, high-quality, and flavorful alcoholic beverages is a significant driver in the Craft Beer Market in India. Consumers are increasingly seeking alternatives to mass-produced beer, looking for more personalized and premium experiences. The craft beer industry is capitalizing on this demand by offering a wide variety of flavors, styles, and brewing techniques, which are appealing to those who value innovation and authenticity in their drinking choices. For instance, White Rhino, launched by Himalayan Ales Private Ltd., became one of India’s first craft breweries to export its products internationally, highlighting the appeal of Indian craft beer styles like Belgian-style wheat and India Pale Ale to both local and global audiences. As the market for craft beer expands, its appeal to both connoisseurs and casual drinkers continues to rise, further driving growth.
Changing Demographics and Lifestyles:
India’s rapidly evolving demographic and lifestyle trends are fueling the craft beer sector’s expansion. With a large, young, and urban population, millennials and Gen Z are at the forefront of embracing craft beer as part of their social experiences. As these generations place more emphasis on experiences over products, the demand for locally brewed and artisanal beverages increases. For instance, Bira 91 has introduced a diverse range of limited-release craft beers-such as Bollywood IPA, Kokum Sour, and Mango Lassi-using local and seasonal ingredients to cater to the flavor preferences of younger consumers seeking unique experiences. The shift toward healthier, more sustainable living also aligns with the ethos of many craft breweries, which often emphasize natural ingredients and eco-friendly practices, further boosting market demand.
Increasing Disposable Income and Urbanization:
The rise in disposable income among India’s middle and upper-middle-class consumers is another critical factor driving the craft beer market. As urbanization accelerates, more individuals are enjoying a higher standard of living and exploring premium lifestyle choices. This includes opting for craft beer over traditional beer options. With the proliferation of craft beer bars, microbreweries, and restaurants, urban centers are becoming hotspots for the growing number of beer enthusiasts who seek high-quality, locally crafted products.
Expansion of Microbreweries and E-commerce Platforms:
The growth of microbreweries across Indian cities is a key enabler of the craft beer market. These establishments not only offer a wide range of exclusive beers but also help to build a strong local market for craft brews. Additionally, e-commerce platforms are playing an essential role in promoting craft beer, offering convenient access to a wider consumer base. These platforms provide breweries with the opportunity to reach new customers and expand their market presence, contributing significantly to the sector’s growth.
Market Trends:
Growing Popularity of Local Craft Breweries:
One of the most significant trends in the Indian craft beer market is the increasing popularity of local craft breweries. Consumers are increasingly attracted to beers brewed locally, which offer unique flavors and ingredients that reflect regional tastes. For instance, Bengaluru has emerged as a major hub for craft beer, currently home to around 60 microbreweries, making it the microbrewery capital of India and offering a wide range of freshly brewed beers that attract repeat visits from local consumers. As a result, microbreweries are becoming more prominent, especially in urban centers such as Bengaluru, Mumbai, and Delhi. This shift towards supporting local businesses is not only enhancing the diversity of available beer styles but also fostering a deeper connection between breweries and consumers.
Health-Conscious Consumption:
Another key trend driving the craft beer market in India is the rising consumer interest in health-conscious drinking options. Craft breweries are responding to this trend by offering lighter, low-alcohol, and gluten-free options to cater to individuals who are mindful of their health while still wanting to enjoy beer. For instance, Budweiser Select 55 offers just 55 calories per bottle and is marketed as the lightest beer in the Budweiser family, specifically targeting mindful drinkers who want to enjoy beer without excessive calorie intake. These beverages often use natural, organic ingredients, further aligning with the growing consumer preference for healthier, more sustainable products. As more consumers prioritize well-being, breweries are adapting their offerings to meet these demands, making health-conscious craft beer options increasingly popular.
E-commerce and Online Sales Channels:
The expansion of e-commerce platforms is another defining trend in the Indian craft beer market. Online sales channels are allowing consumers to conveniently purchase craft beers from various regions, often with access to products not available locally. As the digital space continues to grow, breweries are leveraging these platforms to reach a wider audience, enhancing their market presence. E-commerce not only provides convenience but also encourages the exploration of different craft beer styles, fueling consumer curiosity and market growth.
Experiential Drinking Culture:
An emerging trend in the craft beer sector is the emphasis on experiential drinking. Consumers are seeking more than just a beverage; they are looking for a full experience that includes brewery tours, tastings, and events. Craft beer bars and microbreweries are increasingly offering immersive experiences that appeal to consumers who value interaction, education, and the opportunity to engage with the brewing process. This trend enhances customer loyalty and strengthens the overall craft beer culture in India.
Market Challenges Analysis:
Regulatory and Legal Challenges:
The Craft Beer Market in India faces significant regulatory and legal challenges that hinder its growth potential. India’s alcohol industry is subject to state-specific laws, with each state having its own set of rules governing the production, distribution, and sale of alcoholic beverages. These regional differences create complexities for breweries attempting to scale beyond local markets, as navigating varying requirements becomes both time-consuming and costly. Additionally, high excise duties and taxes imposed on alcoholic beverages often lead to higher production costs, making it challenging for small craft breweries to remain competitive with large, mass-market beer brands. Such financial pressures may force smaller breweries to limit production or increase prices, further limiting their consumer base. For instance, United Breweries, AB InBev, and Carlsberg-who together account for 85% of beer sales in India-have raised concerns that Delhi imposes a 150% excise duty on domestic beer, while imported beer from Bhutan and Nepal is taxed at just 65%, creating a substantial disadvantage for local producers and leading to a flood of lesser-known imported brands in the market. Moreover, the lack of a unified regulatory framework across states can lead to supply chain inefficiencies, complicating logistics and distribution, and affecting overall market accessibility. These regulatory hurdles remain a critical barrier for expanding the craft beer industry.
Limited Consumer Awareness and Education:
Despite a growing interest in craft beer, consumer awareness remains a major obstacle in India’s craft beer market. Many Indian consumers are still unfamiliar with the concept of craft beer, often associating beer with mass-produced options from well-known brands. This lack of knowledge about the variety of flavors, brewing techniques, and the craftsmanship involved in brewing craft beer limits its appeal. Traditional beer consumption habits dominate the market, and shifting consumer mindsets requires significant educational efforts. Craft breweries face the challenge of explaining the differences between craft beer and regular beer, especially when the concept of artisanal brewing is still in its nascent stages in many parts of India. Although some urban regions have embraced craft beer, there is a need for broader consumer education across diverse demographics. Craft breweries must invest in marketing campaigns, events, and brewery tours to engage with the public and foster a deeper understanding of the craft beer experience.
Market Opportunities:
The Craft Beer Market in India presents significant opportunities for growth, driven by the increasing consumer demand for premium, artisanal beverages. As disposable incomes rise and a younger, more adventurous consumer base seeks unique drinking experiences, there is ample room for craft breweries to introduce new and diverse beer styles. The urbanization trend further supports this demand, as younger, more affluent consumers in cities are eager to explore alternatives to mass-produced beer. Additionally, as the millennial and Gen Z demographics continue to prioritize experiential consumption, breweries have the chance to tap into this market by offering personalized, locally brewed beers that align with their values of sustainability and quality. By focusing on innovation and catering to local tastes, craft breweries can position themselves to capture an expanding market that is looking for more than just traditional beer options.
The growth of microbreweries and the expansion of e-commerce platforms also offer considerable opportunities. As the craft beer culture takes root in cities like Bengaluru, Mumbai, and Delhi, breweries can tap into regional preferences, offering tailored products that cater to local tastes and ingredients. Additionally, the rise of online sales platforms provides an opportunity for craft beer producers to reach a broader, national consumer base. With e-commerce, even smaller breweries can access consumers in regions where craft beer options are otherwise limited. As India’s craft beer market continues to evolve, the combination of local production, online distribution, and targeted marketing campaigns will enable breweries to establish a strong presence, unlocking further growth potential and attracting an ever-growing segment of discerning beer enthusiasts.
Market Segmentation Analysis:
By Product Type
The Craft Beer Market in India is primarily segmented by product type into ales, lagers, and others. Ales, known for their rich, fruity flavors, are popular among craft beer enthusiasts, while lagers, with their smooth and crisp taste, appeal to a broader audience. Other varieties, including stouts and IPAs, cater to niche consumer preferences.
By Age Group
The market is driven by consumers across various age groups, with the primary focus on those aged 21–35 years old. This demographic is the largest consumer segment, attracted to craft beer’s unique flavors and premium positioning. Additionally, the 40–54 age group represents a growing market as they seek new, high-quality drinking experiences, while consumers aged 55 and above are less significant but still contribute to overall demand.
By Distribution Channel
The distribution of craft beer in India is segmented into on-trade and off-trade channels. On-trade includes consumption at bars, restaurants, and breweries, which is growing in urban areas due to the rising demand for craft beer experiences. Off-trade, comprising retail sales through supermarkets and e-commerce, is expanding as consumers increasingly purchase craft beer for home consumption.
Segments:
Based on Product Type:
Based on Age Group:
- 21–35 Years Old
- 40–54 Years Old
- 55 Years and Above
Based on Distribution Channel:
Based on Region:
- South India
- North India
- West & Central India
- East India
Regional Analysis:
Northern India
Northern India is a significant market for craft beer, accounting for a large share of the overall market. In 2024, the region holds 30% of the Craft Beer Market in India. Major cities like Delhi, Chandigarh, and Jaipur have witnessed a growing interest in craft beer, with the rise of microbreweries and craft beer bars offering a wide range of options. The increasing disposable income, along with a young, urban demographic, contributes to the demand for premium, unique beverages. The region’s growing trend of experiential drinking, where consumers seek both quality and authenticity, drives the craft beer segment. Additionally, the availability of craft beer in high-end restaurants, bars, and retail outlets further supports this growth.
Southern India
Southern India is another key region, holding approximately 25% of the Craft Beer Market in India in 2024. Cities like Bengaluru, Hyderabad, and Chennai are central to the market’s growth, driven by the expanding craft beer culture. Bengaluru, in particular, is considered one of the leading cities for craft beer in India, with numerous microbreweries and craft beer bars. The region’s growing inclination toward experimentation with flavors and the rise of beer tourism further contribute to the demand for craft beer. Additionally, Southern India’s increasing focus on locally sourced ingredients and sustainability aligns with the values of craft beer consumers, boosting market penetration.
Western India
Western India, including states like Maharashtra, Gujarat, and Goa, holds a market share of 35% in 2024. Maharashtra, with Mumbai as its commercial hub, leads the region in terms of craft beer consumption. Goa, a popular tourist destination, also plays a pivotal role in the market, attracting both domestic and international consumers with its vibrant craft beer scene. The region benefits from a robust tourism sector, a rising number of craft breweries, and growing consumer awareness about premium beverages. The demand for craft beer in upscale restaurants and bars in urban centers further drives the market in this region.
Eastern India
Eastern India holds a smaller share of 10% of the Craft Beer Market in India in 2024, with major cities like Kolkata and Bhubaneswar emerging as potential growth centers. While the region’s craft beer market is still in its nascent stages compared to the southern and western parts of the country, it is gradually gaining traction, especially among younger consumers. The increasing popularity of craft beer in metropolitan areas and the rise of localized beer festivals contribute to the region’s market expansion. However, Eastern India faces challenges related to limited craft beer infrastructure and a slower rate of consumer adoption compared to other regions.
Key Player Analysis:
- Inbrew Beverages
- SOM Distilleries and Breweries Limited
- Khemani Group
- Gateway Brewing Company
- Carlsberg India Private Limited
- Arbor Brewing Company India
- Devans Modern Breweries Ltd
- Anheuser-Bush InBev SA NV
- Delhi-6 Beer
- United Breweries
Competitive Analysis:
The Craft Beer Market in India is highly competitive, with leading players such as United Breweries, Anheuser-Bush InBev SA NV, Arbor Brewing Company India, Carlsberg India Private Limited, Devans Modern Breweries Ltd, SOM Distilleries and Breweries Limited, Gateway Brewing Company, Delhi-6 Beer, Khemani Group, and Inbrew Beverages actively vying for market share. These companies differentiate themselves through unique product offerings, with many focusing on locally brewed, high-quality craft beers that appeal to India’s evolving consumer preferences. United Breweries, with its strong market presence, capitalizes on its established distribution network and brand recognition. Similarly, Anheuser-Bush InBev’s global expertise enables it to introduce a range of craft beer options tailored to the Indian market. Smaller players like Arbor Brewing Company and Gateway Brewing Company, on the other hand, focus on innovation and creating a more localized, experiential craft beer culture. As competition intensifies, the focus on premiumization, sustainability, and consumer education will be crucial for maintaining a competitive edge in this rapidly growing market.
Recent Developments:
- On May 27, 2022, Inbrew Beverages Pvt Limited acquired 32 spirits brands from United Spirits Ltd (USL), the Indian arm of Diageo.
- In April 2025, SOM Distilleries & Breweries Limited began dispatching beer from its Hassan, Karnataka plant to Tamil Nadu, marking an expansion of its distribution footprint in southern India.
- In September 2024, SOM Distilleries launched India’s first twist cap beer, “Woodpecker Premium Beer,” in Karnataka, introducing a new level of convenience and innovation to the Indian beer market.
- In August 2023, Khemani Group introduced Kamanda Matured Indian Spice Rum in the Indore and Bhopal regions, expanding its portfolio and showcasing its commitment to innovative, locally inspired products.
Market Concentration & Characteristics:
The Craft Beer Market in India is moderately concentrated, with a mix of established global players and emerging local breweries competing for market share. Major international brands, such as Anheuser-Bush InBev SA NV and Carlsberg India, leverage their extensive distribution networks and brand recognition to establish a strong foothold. However, a growing number of microbreweries and regional craft beer producers, such as Arbor Brewing Company and Gateway Brewing Company, are driving innovation and catering to the increasing demand for unique, artisanal brews. The market is characterized by a shift towards premiumization, with consumers increasingly seeking high-quality, distinctive beers over mass-produced options. Local flavors, sustainable practices, and craft brewing techniques are becoming key differentiators. The focus is on offering personalized, experiential drinking options that appeal to India’s young, urban demographic. As the market matures, consolidation among smaller players may occur, but competition will remain dynamic due to evolving consumer preferences.
Report Coverage:
The research report offers an in-depth analysis based on Product Type, Age group, DIstribution Channel and Region. It details leading market players, providing an overview of their business, product offerings, investments, revenue streams, and key applications. Additionally, the report includes insights into the competitive environment, SWOT analysis, current market trends, as well as the primary drivers and constraints. Furthermore, it discusses various factors that have driven market expansion in recent years. The report also explores market dynamics, regulatory scenarios, and technological advancements that are shaping the industry. It assesses the impact of external factors and global economic changes on market growth. Lastly, it provides strategic recommendations for new entrants and established companies to navigate the complexities of the market.
Future Outlook:
- The demand for craft beer in India will continue to rise, driven by changing consumer preferences for unique, high-quality beverages.
- Younger generations, particularly millennials and Gen Z, will remain the primary drivers of the craft beer market.
- Regional expansion will play a key role, with more microbreweries opening in tier-2 and tier-3 cities.
- Consumer education on the variety of craft beer options will increase, leading to broader acceptance and demand.
- Sustainability and eco-friendly brewing practices will become crucial differentiators in the competitive landscape.
- E-commerce platforms will facilitate wider distribution, enabling small craft breweries to reach national consumers.
- The introduction of low-alcohol and health-conscious craft beer options will appeal to a growing segment of health-aware consumers.
- Partnerships with bars, restaurants, and retail outlets will increase to ensure wider availability of craft beer in urban areas.
- Innovative marketing strategies and beer festivals will continue to drive awareness and consumer engagement.
- The regulatory environment will evolve, with potential for more uniform laws across states, facilitating market growth and distributio
