Brewing Success: The Rise of Beer Startups in India's Growing Market

Amid increasing funding, beer startups in India are expanding and introducing new products to meet the demands of a market experiencing growing disposable income and reduced societal stigma towards alcohol consumption.

In 2022, the Indian beer market reached Rs 38,360 crore and is projected to reach Rs 62,240 crore by 2028, with a compound annual growth rate (CAGR) of 8.1% during 2023-2028, as per IMARC Group's analysis.

Last year, Proost Beer, a local beer brand operated by Grano69 Beverages, secured Rs 27.5 crore in funding through a blend of equity and debt sources. Currently operational in Delhi, Punjab, Uttar Pradesh, and Kerala, Proost intends to expand into five new markets while diversifying its product range, focusing on 'mass premium affordable' beers in the strong beer category.

The growth in the beer market is attributed by Proost to the rising per capita beer consumption, growing disposable incomes, and diminishing societal stigma associated with alcohol.

VP Sharma, managing director of Grano69 Beverages, noted, "There's a noticeable rise in young consumers who are inclined towards enjoying quality beer while socializing. Furthermore, the expansion of the middle class and increased disposable incomes have led to higher spending on alcoholic beverages like beer, presenting significant investment opportunities."

B9 Beverages, known for Bira 91 beer, has secured $200 million in funding, including $25 million from Tiger Pacific Capital, an Asia-focused fund based in New York and Hong Kong. With favorable trends, Bira 91 anticipates substantial growth, particularly among younger consumers preferring lower alcohol content, flavor-focused drinking experiences, and increased participation, including from women.

Ankur Jain, founder and CEO of Bira 91, stated, "We introduce a new product weekly at our taprooms and have an extensive new product pipeline. Last year, we launched several new products, and this year's summer lineup promises excitement."Reybier Alo Bev, India's first woman-led brewery in Goa, highlighted that consumer priorities, emphasizing affordability and value, are driving its growth. Reybier intends to reintroduce 'Indian heritage' beers to bridge generational and gender gaps. Rasagna Rao Dharmana, founder of Reybier Alco Bev, mentioned, "We have two commercial beer brands – Royal C'zar and Mr. Bob – available in Goa. As part of our expansion plan, we will soon launch these products in other domestic and international markets."

Also Read: Utilizing “Big Data” to Enhance Distillery Brands