AB InBev’s Growth in India Outpaces Industry Performance, Says President
New Delhi: AB InBev, the world’s largest brewer, has surpassed the growth of India’s beer market in the first half of the year, positioning the country as one of Budweiser’s top three markets globally as of June, following the US and China. The company reported strong double-digit growth despite disruptions from the West Asia conflict, which affected supply chains and led to can shortages. Premiumisation has emerged as a significant driver of beer consumption, according to Kartikeya Sharma, president of AB InBev India.
Premium Segment Growth
During the first half of the year, premium beers saw a growth of approximately 20%, aided by regulatory changes in key markets like Maharashtra and Karnataka. These changes have allowed AB InBev to capture about 20% of the overall beer market, which totals 20 million hectoliters. The overall industry grew around 12% during the same period. The premium segment now constitutes about 65% of the company’s volumes, with brands such as Budweiser, Corona, and Hoegaarden leading this growth.
Cans are becoming increasingly popular in India’s beer market, representing about 28% of total sales. AB InBev holds over 40% of the canned beer market, reflecting its strategic focus on this format. The beer category is thriving, particularly in states where tax structures have been normalized, creating a more competitive environment between beer and spirits. For instance, Maharashtra has experienced growth of about 40%.
Shifts in Consumer Preferences
Karnataka has emerged as a notable case for changing consumer preferences, with the sale of beer below 5% ABV (alcohol by volume) doubling to 20% within three months. The state has mandated that manufacturers specify alcohol content to the first decimal point. This regulatory shift allows for a clearer categorization of beer based on alcohol content, which could influence consumer choices.
Sharma indicated that this trend encourages innovation to meet diverse consumer needs. He noted that consumers may seek lower-ABV options for various occasions, and Karnataka provides an opportunity to test these products. He emphasized that favorable policies could enhance consumer choice and variety in the market.
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