Youth redefining beer culture

Saying ‘Cheers’ with beer has become an increasingly popular trend, giving the beer industry a much-needed boost. And with an increasing number of young consumers veering towards premium and low-ABV beer, manufacturers are finding innovative ways to make beer a versatile choice for all kinds of occasions. As Avneet Singh, Founder and CEO, Medusa Beverages Pvt. Ltd. highlights that the beer sector is on an upward trajectory and will see the launch of exciting new variants with diverse flavours in the near future.

One trend that industry experts unanimously acknowledge is that consumers are becoming more experimental, embracing premium and craft beer experiences. While strong lagers continue to dominate the Indian market, there is a growing interest in lighter beers with more complex flavour profiles. Premiumisation is no longer solely about higher pricing; it also involves unique brewing techniques, diverse flavours and aspirational branding.

Avneet opines that this shift is largely driven by urban millennials, Gen Z and well-travelled consumers who appreciate global beer trends. However, India’s price-sensitive market ensures that the mass-market segment remains crucial to sustaining industry growth. That apart, the beer industry is experiencing steady expansion, spurred by rising consumption and increased investment in breweries and distribution networks. As for the low and zero-alcohol beer trend, while it is growing globally, India is still a strong beer market. Meanwhile, Tier II and III cities are becoming significant contributors due to urbanisation, evolving social norms, greater acceptance of beer for celebrations, and the expansion of hospitality infrastructure.

Recognising these evolving consumer preferences, Medusa Beverages has focused on delivering a premium beer experience to its customers.

Medusa Beverages currently has three SKUs in the market. Medusa Premium, Strong and Air, besides a recent product launched in collaboration with Warner Bros., called the House of the Dragon Fire. “To deliver the quality we want, we are sourcing our malts and hops from Germany, and along with some unique brewing techniques we give our beers a high-end profile,” says Avneet.

Overcoming Obstacles

The growth of beer in India is hindered by several obstacles like taxation and regulatory issues. “High excise duties are a problem. Every state has its own alcohol policies, and retail and licensing barriers are some of the hurdles that we face,” he states. While states like Maharashtra and Karnataka offer relatively stable policies, others impose restrictive liquor laws, creating operational difficulties for brewers.

Rising costs of raw materials, including barley and hops, have also significantly impacted beer production expenses. Global supply chain disruptions, climate change and inflationary pressures contribute to fluctuating costs. “To mitigate these challenges, we build strong supplier relationships for cost optimisation and focus on local sourcing to reduce import dependencies,” Avneet states. Optimisation of production and logistics also contributes to efficient cost management.

Not ‘International’ Enough

Avneet Singh would personally like to see Indian beer attract attention in the international markets too. However, regulatory challenges, high import duties in foreign markets, lack of aggressive global branding and distribution strategies are some of the reasons why Indian beers are taking more time to gain the kind of recognition Indian Single Malts have. However, as Indian beer brands continue to innovate and improve quality, industry observers anticipate increasing global acceptance.

Expanding Reach

When it comes to beer, promotion matters a lot, and Medusa Beverages leverages digital marketing, social media, and experiential activations to connect with its consumers. Some of the company’s promotional strategies include social media campaigns with engaging content that resonates with young beer lovers, tapping into pop culture, music festivals and nightlife events, and partnering with bars and retailers to create unique brand experiences.

Domestically, the company’s focus is on expanding into more Indian states and strengthening its presence in the existing markets. “The international market is not on our priority list as of now but there is a lot of potential there that we might explore in the coming years,” says Avneet.

Consumers today, especially the young, are increasingly becoming environmentally conscious and Medusa Beverages shows its commitment towards sustainability with water conservation in the brewing process and optimising supply chain logistics to minimise the company’s carbon footprint. “Sustainable brewing will play a significant role in the future of the industry,” believes Avneet.