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Craft Beer and Premium Spirits: The Rising Segments in the India Alcohol Market

Feb, 2025 - by CMI

Craft Beer and Premium Spirits: The Rising Segments in the India Alcohol Market

India's craft beer market is at an exciting rising stage, where more consumers move away from mainstream, mass-produced beer to high-end, premium, and artisanal beers. Microbreweries and independent craft beer producers are capitalizing on this trend, offering a very diverse range of unique beers based on quality ingredients and innovative flavors. Actually, it is a revolution for craft beers that are changing the traditional approach to drinking beer, especially in cities like Bengaluru, Mumbai, and Delhi, with increasing demand for more flavorful brews.

After launching in Mumbai and Bangalore, White Owl, Simba, and Bira 91 are spreading out further around the country, and local microbreweries are brewing everything from hopped-up pale ales to rich stouts. To capitalize on the emerging demand for craft beer, pub operators, bars, and restaurants are adding exclusive craft beer taps, and consumers prefer a craft product over a mass-marketed one. This fact is very apparent: craft beer is no longer a niche market but has now become mainstream in India, for beer lovers of all stripes.

Premium Spirits in India: The Taste of Luxury

As the disposable income of Indians increases, demands for premium and super-premium spirits are growing. High-end whiskey, gin, rum, and vodka brands are gaining much popularity among well-heeled customers who look for luxury and class.Premium spirits have become the status symbol with the increasing numbers of Indian customers willing to shell out more on bottles that assure better taste and craftsmanship.

Now, it can be easily accessible for those elite sections due to brand names such as Macallan, Glenfiddich, and Johnnie Walker Blue Label. The premium spirits business is the most booming business in India. On one hand, international labels have quite widely stretched an influential presence, and on the other hand, Indian brands are also stepping up to cater to the ever-increasing demand. The recognition of the craft and quality of Indian premium whiskey brands like Amrut and Paul John has opened new avenues for growth in the sector.

Growth in Demand for Craft Beer in India: Uncharted Horizons for Brewers

The increasing need for craft beer in India manifests a cultural transformation towards more experiential drinking, with an increasing number of consumers seeking unique, innovative, and authentic something. Craft breweries are tapping this desire by innovating with a variety of flavors, ingredients, and brewing methods. From the use of exotic fruits and spices to rare hops, Indian craft beer brands come up with unique products that reflect the changing nature of modern tastes in beer drinking.

Demand for craft beer is no longer a phenomenon of metropolitan towns but is spreading to smaller towns. Rising disposable incomes and a taste for quality products are making people spend more on craft beers that give a richer and more diverse drinking experience compared to standard beers. Hence, the microbreweries in Bengaluru, Pune, and Delhi are booming with an opportunity to beer lovers to experience a world of flavors that are yet unknown. The growing craft beer also generates new job opportunities and leads to innovation in brewing techniques that result in an expanding industry.

Premium Alcohol Brands in India: Elevating the Experience of Drinking

Recent years have seen tremendous growth in India for premium alcohol brands, mainly driven by an emerging middle class and the escalating demand for luxury goods. Premium brands-whether whiskey, wine, rum, or vodka-well capture the inclinations of Indian consumers, who have come to want more quality with distinctive flavors and experiences.

The Indian consumer has become more choosy, seeking premium alcohol as the best of its kind for better taste and artistry. Brands such as Glenlivet and Chivas Regal have seen demand because of not only the new-income elite but also new youthful professions and influencers with an aspirational taste for sophisticated drink culture.

Segmentation of Indian Alcohol Market: Change in Preferences and Growth

The Indian alcohol market is seeing the paradigm shift of segmentation in their consumers shifting preference towards premium and super-premium products in the entire basket: beer, whiskey, wine, and rum.

Premium, and craft, now take a preference over the traditional value beers by consumers due to the pursuit of more complicated brews. Premium and ultra-premium brands lead the spirit market as premium consumers pursue the experience of exclusivity. For wines, a trend in their premium segment emerges from urban consumer developments of foreign and local boutique brands.

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