NEW DELHI: The pandemic may have brought the Indian consumer market to record lows, but despite the disruption, United Breweries believes that the country’s large market for beer is likely to see many new entrants and acquisitions.
In its annual report, the company said that the country’s beer market has been strengthening due to the steady rise in disposable income, a rising preference for low alcohol beverages, and gradual, but steady, social acceptance. These three factors, it added, will propel "huge growth in the coming years".
The company currently produces some of India’s largest alcoholic brands such as the Kingfisher range of beer. It also expects exports to rise in tandem with the domestic market. "The maturing beer market combined with the support of government incentives on exports will positively open up higher export potentials for Indian beer brands," it said.
UBL also gave a snapshot of UTs operations over the past three years, noting that it has been making direct exports from India to Singapore, UAE and a few other countries alongside its licensing arrangements for brewing products in the United Kingdom (including supplies to European market), Australia, New Zealand and Nepal.
Speaking about the Indian market, it said that though growing, per capita beer consumption in India remains very low compared to other countries in the Asia Pacific region. Factors such as an ongoing shift from hard liquor to beer consumption would drive growth going forward. Also, beer consumption is increasingly becoming part of their social interactions.
"Attitude towards alcohol consumption is evolving particularly amongst youth, working women and other urban population who are gaining an appetite for beer as social drinking has become a more adaptable lifestyle," it said.
"Except for the current financial year where sales and revenue may be adversely impacted due to the after-effect of this force majeure circumstance, the opportunities for beer growth would stay northbound," UBL added.