India’s largest beer companies—United Breweries, Anheuser-Busch InBev (AB InBev), and Carlsberg—plan to invest over Rs. 3,500 crore (US$ 404 million) in 2025 to set up new breweries, marking their highest capital expenditure in over a decade. Together, these companies control 85% of India’s beer market. Carlsberg has committed Rs. 350 crore (US$ 40.4 million) to build a brewery in Mysuru, Karnataka, increasing its total investment in the state to Rs. 600 crore (US$ 69.3 million) United Breweries plans to invest Rs. 750 crore (US$ 86.6 million) for a new brewery in Uttar Pradesh, its first greenfield expansion in 12 years, while AB InBev will invest Rs. 2,166 crore (US$ 250 million) in India’s beverage market over the next two to three years.
India presents strong growth opportunities for beer, with 800 million people of legal drinking age, 20 million new entrants each year, and rising urbanization and disposable incomes. The market, however, is complex due to state-wise regulations, taxation policies, and restricted alcohol sales, with just 90,000 licensed outlets across the country. India remains primarily a spirits-driven market, with high-alcohol beverages making up two-thirds of consumption, and strong beer accounting for 80% of total beer sales. Despite challenges, global brewers see India as a key market due to its warm climate, expanding middle class, and changing consumer habits, including an increasing number of women beer drinkers.
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