Beer Industry Bubbles With 90% Growth In AP

According to data provided to Deccan chronicle from the Brewers Association of India, total beer consumption jumped from 382 units during January-May 2024 to 725 units in the same period this year. The entire fiscal year of 2024 recorded 863 units.

The premium and super-premium segment has been the standout performer, recording an extraordinary 136 per cent growth. These high-end products climbed from 59 units during January-May 2024 to 140 units in the corresponding period this year.

The premium segment, which accounted for just 134 units for the full 2024 fiscal year, is already on track to exceed 300 units in annual volumes by year-end, more than doubling last year's performance.

The Brewers association has collected the data from the International Wines and Spirits Report (IWSR) and secondly comprises data compiled directly from member breweries for internal analysis.

The "Flavour Forward" movement sees young consumers, particularly women, gravitating towards lighter, flavoured, and low-alcohol beer varieties, moving away from traditionally prevalent hard spirits.

If current trends persist, industry forecasts predict that Andhra Pradesh's total beer market could reach 1,500-1,800 units by fiscal year 2026, potentially doubling from 2024 levels.

Director general of Brewers Association of India, Vinod Giri, said, "The addition of new outlets is aiding in the recovery of previously lost beer sales in Andhra Pradesh. However, while there has been some correction, the sales have yet to reach the pre-2019 levels," he told Deccan Chronicle.

He provided context for the current growth, noting that until a few years ago, the AP beer market was comparable to neighbouring states like Telangana and Karnataka, selling over three crore cases annually. However, since 2018-19, the market witnessed a sharp decline to 1.1 crore cases, while other states continued to grow.

He further added that while urban centres like Visakhapatnam and Vijayawada contribute slightly more due to higher population density and incomes, no particular district stands out in terms of consumption patterns.

While premium craft beer may see growth of around 30 per cent in the coming year, Vinod Giri noted that Andhra Pradesh is unlikely to immediately match established markets like Bangalore or Goa, which have a significant head start. "After the market downturn post-2019, AP is only now catching up with trends led by well-established companies, unlike the fly-by-night operators that filled the gap earlier," he observed.