Indian beer giants lose market share to emerging local brands 

India – India’s largest beer producers, United Breweries (UB) and AB InBev, have experienced a significant market share loss to emerging local brands such as British Empire, Godfather, Cobra, and Khajuraho.  

According to the Economic Times, this shift comes as global companies pivot their focus towards higher-margin premium brands, resulting in a 4 percent market share decline. 

The once dominant brewers, along with Carlsberg, held about 90 percent of the market over the past decade. However, in 2023, UB and AB InBev’s combined market share fell to 67.8 percent, down from 71.9 percent in 2022, as per the latest IWSR data. 

“Our beer volumes grew on the back of new production tie-ups in the states of Jharkhand, Uttar Pradesh, and Tamil Nadu, where there was pent-up demand for our products which we were not able to service due to capacity constraints,” said Prem Dewan, chairman of DeVans Modern Breweries. 

Dewan attributed the growth challenges to limited funds compared to multinational companies, which have expanded primarily through acquisitions.  

This financial constraint has delayed the growth of local brands, but recent expansions have yielded high double-digit sales increases. British Empire, owned by Chennai-based SNJ Group, saw a 48 percent growth, while Mohan Meakin’s Golden Eagle sales rose 11 percent. Lilason’s Khajuraho grew 10 percent, and Kangaroo beer experienced a 17 percent increase. 

Conversely, brands such as Canon, Amstel, and Zingaro, owned by UB, along with AB InBev’s Fosters and Royal Challenge, saw a decline in sales.  

The fall in market share for these large players was primarily in the value or lower-priced segment, which grew by 1.2 percennt during the year, as homegrown players expanded their sales significantly. 

“There has been a gradual and consistent shift by the global brewers towards more commercially sustainable and viable growth instead of just chasing volumes at any cost.  

Also, they are investing in premium innovations to widen the user base and improve choice for their future growth as Indians uptrade to drinking better and more responsibly,” explained Vinod Giri, director general of the Brewers Association of India (BAI). 

India’s beer market saw volume sales of 345 million cases last year, but premium beer accounted for less than 15 percent of total sales, reflecting consumers’ preference for lower-priced and strong beer.  

The high level of demand is temporary and attributable to consumers switching between 180 ml whisky and 650 ml bottles of beer based on price, according to the IWSR report. 

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