Challenges Faced by Craft Beer Industry in India

The craft beer industry in India has faced significant challenges, with many brands struggling to thrive. Despite initial hype and growth, craft beer sales remain a small fraction of overall beer sales, accounting for only 2-3%. One reason for this is that a majority of consumers in India prefer stronger beers. Additionally, setting up a craft beer operation is expensive, costing around 70 crore rupees, not to mention the substantial costs involved in brand campaigns. The complexity of going pan-India due to varying tax rates and licensing processes further adds to the difficulties faced by craft beer makers. The pandemic and subsequent liquor bans have also taken a toll on the industry, with several small craft brewers being forced to shut down. However, microbreweries that serve fresh craft beer on tap are still gaining popularity.