Stronger, well-priced lagers are the primary driver in India’s beer market growth

Stronger beers are increasingly favoured in India’s premium beer segment as consumers opt for higher-alcohol brews over milder alternatives, according to a recent report in India’s The Hindu businessline.

The shift is driven by the minimal price difference between weak and strong beers, allowing consumers to get more potency for a comparable cost. Whereas, historically, Indian beer consumers have preferred traditional lagers dominated by a few major brands, over the past four decades, newer entrants have challenged established players by offering stronger variants, reinforcing the preference for robust beers without significant price hikes.

Consequently, Indian beer preferences now differ markedly from global trends due to its unique cultural, climatic, and economic factors. While international markets favour lighter beers like lagers and pilsners, Indian consumers increasingly gravitate towards lagers with an alcohol by volume (ABV) between 5% and 8%.

In India, beer consumption is often linked to social gatherings and celebrations, contrasting with the more casual or mealtime drinking habits seen in other places worldwide.

Moreover, there is a preference for lagers with full-bodied tastes that complement the country’s spicy cuisine, whereas global markets embrace more diverse styles such as IPAs, stouts and wheat beers for their unique flavours.

Research by Ken Research, an Indian market research consultancy, indicated that by fiscal year 2018, strong beers dominated the Indian market, with lagers being the most preferred, followed by wheat beers, stouts, porters, and ales.

Another study by Niir Project Consultancy Services found that strong beers account for nearly 80% of beer sales in India. In contrast, regions like Europe and North America have a wide variety of successful lower-ABV styles and craft beer innovations in the market that are focused on flavour rather than alcohol strength.