Brewers cheer an early summer
2 min read . Updated: 24 Feb 2023, 12:22 AM IST
Premium- Summer is approaching early this year, and it can be one reason for the increase in demand
Brewers are licking their lips in anticipation of a potential sales boom as temperatures rise unexpectedly across the country. Executives at Bira 91, Simba, and BeeYoung have already noted a rise in demand and are optimistic that Holi celebrations will bring additional cheer.
“We are expecting a record-breaking season as consumers are now keen to indulge in a diverse range of drinking occasions—both at home and outside. The summer of 2023 comes at an opportune time as the demand for beer is exceeding pre-pandemic standards," said Ankur Jain, founder and CEO of Bira 91.
Bira claims it is India’s fourth largest brewer with a capacity of 2.5 million hectolitres and intends to double output over the next two years.
Kimaya Himalayan Beverages, makers of BeeYoung and Yavira beer, said it sold over half a million cases last summer and expects to double sales this year.
“Summer is approaching early this year, and it can be one reason for the increase in demand. So, this summer, we expect to sell the equivalent of our last year’s numbers in just a season itself. I foresee the industry projection showing an upward graph that could lead to higher chances of supply shortage," said Abhinav Jindal, founder and CEO of Kimaya Himalayan Beverages. “We are seeing huge demand from Delhi and Uttarakhand and are expecting a rise in demand in Chandigarh and Uttar Pradesh. We are also working on tapping new territories such as Karnataka and Kerala to introduce and expand BeeYoung to newer markets."
Economic think tank ICRIER estimates that India’s alcoholic beverages market was worth $52.5 billion in 2020 and may grow at a compounded annual rate of 6.8% between 2020 and 2023, making it one of the world’s fastest-growing markets. It says the share of beer consumption between 2013 and 2018 has increased from 44.6% to 49.3%, while that of wine has remained almost constant between 0.42% and 0.5%. While spirits dominate the Indian market, its share in volume terms has decreased from 55.02% to 50.31% during the same period.
Ishwaraj Bhatia, co-founder and COO of Simba, said the company produces about 300,000 cases a month and is expecting to see anywhere between 20 and 25% growth in the company’s business owing to early summer. “In Delhi, we are getting a lot of demand already, earlier than we do each year. From the first week of March, we are going to see high demand also because of the festival of Holi," he said.
According to BlueWeave Consulting, the Indian beer market had a size of $4.34 billion in 2020. It is expected to hit $9.36 billion by 2027 and is projected to grow at an annual average pace of 12% during 2021-2027.
Beer is India’s second most popular alcoholic beverage after whisky, it said. The growth of India’s beer market owes to the rising demand for diverse beer brands, and the country’s growing workforce.