The craft beer industry in India has seen tremendous growth in recent years, with a rising demand for unique and artisanal beer flavors among the young, urban population. The industry has also witnessed the entry of several new players, with many microbreweries and brewpubs opening up across the country.

Craft beer is gaining more popularity in the Indian markets because it utilizes traditional brewing techniques and ingredients. It is produced in small quantities with special recipes that cater to the needs of beer lovers. A majority of people in India are not satisfied with mass-produced commercial beer. Instead, they are looking for a locally made beer that is sourced with fresh ingredients. This change resulted in the growth of the craft beer industry in India. Although the sale in the craft beer industry is very less when compared to commercial beer, it is growing every year in India. The growth rate is promising due to various factors that will generate more profits and revenues. 

What are the future growth prospects of the craft beer industry in India?

1. Growing number of microbreweries is the key driver of the craft beer growth rate 

Craft beer is getting a strong foothold in the Indian markets over recent years. As a result, the number of breweries is growing which will boost the growth rate. A recent study reveals that India has nearly 70 breweries in various cities. The increased number of breweries in India resulted in the stabilization and the growth rate is expected to grow in future markets. 

2. Increasing café and pub culture will drive the growth rate 

The emergence of Western culture in India has made changes in urban areas. As a result, the number of pubs, restaurants, hotels, and cafes is increasing due to the high population. All of them serve high-quality beer including craft beer to customers. 

3. Millennials and Gen Z are the growth drivers

The younger generation in India is one of the reasons behind the growth of microbreweries that will shape the craft beer industry. Millennials and Gen Z are likely to grow in size and they may play a key role in influencing the craft beer industry. Local microbreweries will increase in the future markets to meet the demand. 

4. Microbreweries will manufacture craft beer with unique tastes

Microbreweries industries focus more on keeping their traditions over the recent years. On the other hand, they will manufacture beer with new tastes to attract more customers. They may experiment with the latest flavors by using creative ideas that will boost the growth rates to a large extent. 

5. Changing consumer preferences will increase the growth rates of craft beer

Nowadays, consumers like to drink beer that has less alcohol and preservatives and prefer new flavors. Craft beer promotes health because it doesn’t contain any preservatives and they use only local ingredients in the manufacturing process. 

What are the challenges faced by the craft beer industry in India?

1. Rising government regulations may impact the growth rates 

The craft beer industry in India is facing problems due to rising government regulations that can impact growth rates. Most breweries are controlled by state governments that follow strict laws in the production process. As a result, getting a new license is becoming more difficult and breweries have to include mandatory approval of the formula. Rising government regulations also affect the business when breweries want to expand their operations.  

2. Lack of public relations and awareness 

The craft beer industry in India is facing heavy competition and the brewery units face difficulties to grab the attention of customers. Another thing is that most people don’t stick to one brand when buying craft beer. They want to try products that come with unique tastes. Also, lack of awareness may a cause a toll on growth rates. 

3. The penetration of corporate breweries 

Corporate breweries are now entering the craft beer industry and they buy small breweries when they have a good reputation. Most of them want to invest their money in a brewery that has a loyal customer base. The entry of corporate breweries may lead to the closure of many small and medium breweries. 

4. High advertising costs 

Advertising is necessary in today’s world to reach more customers. Companies that produce alcoholic beers advertise their products through various channels which are low. On the other hand, some microbreweries cannot afford the advertising costs when they want to promote their products. Moreover, they don’t how to promote their products in India which may impact the growth of the craft beer industry. 

5. The rising costs of raw materials 

The cost of raw materials for craft better production is increasing over recent years and many breweries face difficulties in purchasing them. Sometimes, they have to pay more money due to high demands. 

6. Water consumption 

Another major issue faced by the craft beer industry in India is water consumption. Breweries use mineral water for production which is available in the region. However, it is suitable for making just one type of craft beer. Production units that want to produce a variety of beers should spend more on water and its minerals which can increase the costs. 


The craft beer industry in India is expected to continue its growth trajectory in the coming years, driven by increasing consumer preference for unique and flavorful beer options, as well as the entry of more players into the market. The industry is also likely to benefit from the growing trend of beer consumption among women and younger consumers. Additionally, the government's recent policy reforms and efforts to encourage small and medium-sized enterprises (SMEs) are expected to provide further impetus to the growth of the craft beer industry.

However, the industry still faces several challenges such as high taxes and regulatory barriers, limited access to quality raw materials, and difficulties in establishing distribution networks. The COVID-19 pandemic has also impacted the industry negatively, as the closure of bars, pubs, and restaurants has resulted in reduced demand for craft beer. Despite these challenges, the future of the craft beer industry in India looks promising, with players focused on innovation, quality, and branding likely to emerge as winners in the market.

Overall, the craft beer industry in India has tremendous potential for growth, but also faces several challenges that need to be addressed in order for the industry to reach its full potential.