Indian Alcoholic Beverage Industry.

 The Indian alcoholic beverage industry is one of the fastest-growing in the world. The market size was estimated to be USD 52.5 billion in 2020 and is expected to grow at a CAGR of 6.8% between 2020 and 2023. This growth is being driven by a number of factors, including:

Increasing urbanization: The growing middle class in India is increasingly moving to urban areas, where they have more disposable income and are exposed to new cultures and lifestyles. This is leading to increased consumption of alcoholic beverages.

Rising disposable income: The rising disposable income of Indians is also driving the growth of the alcoholic beverage industry. People are now more willing to spend money on alcoholic beverages, especially premium and imported brands.

Changing consumer preferences: Indian consumers are becoming more sophisticated and are demanding a wider variety of alcoholic beverages. This is leading to the growth of new segments in the market, such as craft beer and flavored spirits.

Liberalization of the alcohol market: The Indian government has been gradually liberalizing the alcohol market in recent years. This has made it easier for new players to enter the market and has led to increased competition.

The Indian alcoholic beverage industry is segmented into three main categories: spirits, beer, and wine. Spirits are the largest segment, accounting for around 60% of the market. Beer is the second largest segment, accounting for around 30% of the market. Wine is the smallest segment, accounting for around 10% of the market.

The spirits segment is dominated by a few large players, such as United Spirits, Diageo India, and Pernod Ricard India. These companies produce a wide range of spirits, including whisky, rum, vodka, and gin. The beer segment is more fragmented, with a number of small and medium-sized players. The wine segment is also relatively small and fragmented.

The Indian alcoholic beverage industry is facing a number of challenges, including:

High taxes: The Indian government imposes high taxes on alcoholic beverages. This makes alcoholic beverages relatively expensive and limits their appeal to a large segment of the population.

Social stigma: There is still a social stigma associated with alcohol consumption in India. This can discourage some people from drinking alcohol, even if they would like to.

Health concerns: There is growing awareness of the health risks associated with alcohol consumption. This could lead to a decline in alcohol consumption in the future.

Despite these challenges, the Indian alcoholic beverage industry is expected to continue to grow in the coming years. The factors driving growth, such as increasing urbanization, rising disposable income, and changing consumer preferences, are likely to continue to play a role. In addition, the government is taking steps to liberalize the alcohol market further, which could lead to even more growth in the future.

Here are some of the key trends that are shaping the Indian alcoholic beverage industry:

Growth of premium and imported brands: Indian consumers are increasingly demanding premium and imported brands of alcoholic beverages. This is being driven by rising disposable income and exposure to new cultures and lifestyles.

Growth of craft beer: There is a growing trend for craft beer in India. Craft beer is made in small batches using traditional methods and ingredients. It is often more expensive than mass-produced beer, but it is also seen as being of higher quality.

Growth of flavored spirits: There is a growing trend for flavored spirits in India. Flavored spirits are spirits that have been infused with fruits, spices, or other flavors. They are often sweeter and more approachable than traditional spirits.

Growth of online sales: The online sales of alcoholic beverages are growing in India. This is being driven by the increasing popularity of e-commerce and the convenience of online shopping.

The Indian alcoholic beverage industry is a dynamic and growing market. It is being shaped by a number of factors, including changing consumer preferences, government policies, and technological innovations. The industry is expected to continue to grow in the coming years, and it is likely to become even more diverse and competitive.

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Bira 91’s Mysuru Brewery becomes India’s first Net Zero Brewery

 Bira 91 today declared the carbon neutrality of its Mysuru brewery making it India’s first Net Zero brewery. This milestone exemplifies Bira 91’s unwavering dedication to sustainability, as it continues to work towards its goal of becoming India’s first Net-Zero beer company by 2025, through its “Mission To Zero” initiative. 

 

Through an aggressive, 360 degree action plan to reduce energy use at its largest brewery in Mysuru, and transition to a 100% clean, renewable energy, Bira 91’s cut Scope 1 and Scope 2 emissions significantly to achieve this milestone.

 

Its carbon emissions for calendar year 2022 were independently assessed and certified by TÜV NORD, one of the world’s leading agencies to assess carbon footprint of companies. The assessment was done in compliance with global ISO 14064 standards, GHG Protocol and ISAE 3410.

 

Speaking of the milestone, Ankur Jain, Founder and CEO, B9 Beverages, said, “At Bira 91, we believe that beer can be even more flavorful if produced in sync with nature. We embarked on the Net-Zero journey a few years back and I am extremely proud that Mysuru Brewery has set a major milestone by becoming India’s first Net-Zero brewery. The Mission to Zero is perhaps the most important work that our company is doing. With a significant manufacturing footprint in India, we feel that we have the responsibility and opportunity to be stewards in the area of carbon neutrality and inspire all manufacturing companies in India to achieve Net Zero. I congratulate our Net Zero Team for working hard and with creativity to achieve what could have seemed unachievable when we announced this goal last year”.

 

Bira 91 embarked on its sustainability journey with the launch of the ‘Mission to Zero’ initiative last year. The company outlined four key areas to accomplish Mission To Zero – shifting to 100% clean energy, 60% reduction in energy consumption, reducing water usage by 50, and complete eradication of waste destined for landfills from all its breweries by 2025. The foundation of this initiative can be traced back to the collaboration between Kirin Holdings and B9 Beverages, which led to the establishment of the B9-Kirin Centre for Sustainable Growth, with a focus on environmental sustainability and business synergies. Consequently, the center initiated its Net Zero project, with the aim of achieving carbon neutrality by 2025. 

 

Sharing his perspective, Hiromasa Honda, Managing Director, Kirin Holdings Singapore,said, “At Kirin, we are dedicated to fostering shared social and economic value with all our stakeholders, while simultaneously striving for sustainable growth. Our partnership with Bira 91 over the past few years is a testament to this vision. By sharing our expertise in innovation and sustainable practices, we have been able to craft the highest quality, sustainable products together.” 

He further added, “We are delighted to announce a significant milestone in our joint net-zero vision, with Bira 91’s Mysuru brewery becoming India’s first carbon-neutral beer manufacturing unit. This remarkable accomplishment, coupled with the soaring demand for Bira 91 beers, is a prime example of how economic growth and social responsibility can work in harmony. We take great pride in our partnership with Bira 91 and look forward to continuing our journey toward a more sustainable future.”

Bira 91’s Mission to Zero has been focused on reducing energy use in its breweries by making its manufacturing processes more automated and efficient. It has transitioned to 100% renewable energy and electricity, produced through solar, hydroelectricity, wind and other clean sources. As a result. the brewery has eliminated its Scope 1 and Scope 2 carbon emissions, cutting down a remarkable 5000 tonnes since FY2021. The facility has also made significant strides in water conservation, saving a staggering 31 million litres of water, equivalent to over 120 million glasses. Moreover, by planting over 500 trees of local varieties on the premises, providing a natural carbon sink for the community. The brewery has achieved this Net Zero milestone several years ahead of its global peers in the sector.

Source: https://hospitalitybizindia.com/news-track/bira-91s-mysuru-brewery-becomes-indias-first-net-zero-brewery/