Flavours and Health Defining the Market

With an increase in consumer demand for a wider range of flavours and appealing packaging styles along with the younger generation’s emphasis on environment-friendly production processes, technology has come to play an important role in the making of beer. Rohan Khare and Apaar Rastogi, Directors of Sinq Beverages, share their views on how the Indian beer industry has re-structured itself to meet the demands of the current times and also is making a strong footprint in India’s alcobev market.

The beer market in India has introducing healthier beer variants, such been experiencing significant growth and transformation and there are multiple factors which are propelling its growth. One of the factors contributing to this growth is the rising popularity of craft beers. Consumers seeking unique flavours and experiences is another factor contributing to the growth of India’s beer industry.

Crafted and Imported

Craft breweries have been emerging across the country, offering a diverse range of artisanal beers to cater to this growing segment of beer enthusiasts. “This trend has led to increased competition and innovation within the industry, as breweries are striving to differentiate themselves and capture market share,” points out Apaar Rastogi.

And, the second factor is that there has been a noticeable shift in consumer preferences towards premium and imported beers, reflecting changing lifestyles and aspirations among Indian consumers. Brands offering high-quality and exotic beer options have gained popularity in India, especially among urban consumers with higher purchasing power.

This trend, Appar says, has prompted domestic breweries to expand their product portfolios to include premium offerings and collaborate with international brands to introduce imported beers to the Indian market.

Health, Wellness and Digitisation

Then there is the growing focus on health and wellness. As such, there is an increasing demand for lighter and low-calorie beer options in India. “The health-conscious consumers are seeking alternatives that offer lower alcohol content and reduced carbohydrates without compromising on taste. Breweries are responding to this trend by introducing healthier beer variants, such as low-alcohol or zero-alcohol beers, and incorporating natural ingredients to enhance nutritional value,” shares Apaar.

Yet another contributing factor to India’s beer market growth is the advent of digitalisation and e-commerce platforms that has transformed the way beer is marketed, distributed, and consumed in India. Online platforms have made it easier for consumers to discover and purchase a wide range of beer products, including niche and specialty brews which may not be readily available in traditional retail outlets. Breweries in India are now seen leveraging digital channels to engage with consumers, to promote their brands, and to gather valuable feedback to inform product development and marketing strategies.

Regulatory Issues

Meanwhile, regulatory policies and taxation continue to influence the beer business in India. Changes in regulations, such as excise duties and licensing requirements, can impact production costs, pricing strategies, and market access for breweries.

Navigating the complex regulatory landscape remains a challenge for beer companies in India, requiring them to stay abreast of policy developments and adapt their business models accordingly.

Consumer Preferences

Talking about dominant beer styles, Rohan Khare says that in the Indian market, lager is traditionally the dominant beer style, which is largely due to the widespread popularity of mainstream lager brands produced by major breweries. “However, in the recent years, there has been a noticeable diversification in beer styles as consumers become more adventurous and seek out different flavour profiles,” he asserts.

He lists out some of the dominant and emerging beer styles in the Indian market. They are: lager, wheat beer, IPA, pale ale, stout and porter. These different styles of beers, he says, are liked by the beer consumers in India for their distinct characteristics and flavours.

“Sours and fruit-infused beers are also starting to make an appearance in the Indian market; appealing to consumers looking for innovative and adventurous beer options,” Rohan informs.

Sinq Beverages’ portfolio represents two different styles of beer - Bad Monkey Strong and Bad Monkey Tamed (lager).

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