India's craft beer market is estimated at about $5.8 billion in 2025 and is projected to reach about $37.9 billion by 2034 (a 23.20% average annual growth rate, according to IMARC Group). Another study puts the 2025 market size at about $1.72 billion, with a forecast of reaching $4.98 billion by 2031 (a 19.1% CAGR). Either way, India's craft beer market stands out as one of the fastest-growing in the world.
Bengaluru and Hyderabad in particular have developed into hubs of craft beer culture, and the number of microbreweries is increasing year by year.
Among young people in India (millennials and Gen Z) in particular, tastes are shifting from mass-produced lager to distinctive craft beer. Alongside rising health consciousness, interest in craft beer, with fewer additives and richer flavor, is rapidly increasing.
Microbreweries are rapidly increasing in major cities such as Bengaluru, Hyderabad, Mumbai, and Delhi NCR. In June 2025, Bengaluru's BLR Brewing Co. opened its fifth brewpub in the city, offering original beers such as the seasonal Bellandur Saison.
India's overall beer market was worth 477 billion rupees in 2025 and is expected to expand to 832.9 billion rupees by 2034 (a 6.45% average annual growth rate, according to IMARC Group). Note that the definition of the craft beer market varies by research firm, and some estimates in circulation even exceed the size of the overall beer market, so it is necessary to check the definition being used when citing figures. The premium segment in particular is growing at a high rate, and the urban affluent and middle classes are the main consumers of craft beer.
Bengaluru and Mysuru in Karnataka are the centers of India's beer industry. Bengaluru in particular leads the craft beer culture for the following reasons.
India's rapidly growing craft beer market offers the following opportunities for Japanese companies.
India's craft beer market is expanding rapidly at an average annual growth rate of more than 20%, and it is considered all but certain to become a multi-billion-dollar market in the 2030s. The market is being driven by the development of microbrewery culture centered on Bengaluru, the rise of India-born brands such as Simba and White Owl, and the premiumization of consumer preferences. A variety of entry opportunities also exist for Japanese companies, in brewing technology, branding, and ingredient supply.
India's craft beer market is expected to grow at a high rate and is considered one of the fastest-growing markets in the world. Shifting tastes among young people and premiumization are driving this growth.
Tastes are shifting from mass-produced lager to distinctive craft beer, especially among millennials and Gen Z. Rising health consciousness is also increasing interest in flavorful beer. The growth of microbreweries in major cities and the trend toward premiumization are also boosting the market.
The background includes a concentration of IT talent familiar with international food culture and highly receptive to new flavors. Karnataka has relatively loose alcohol regulations, making it easy to open microbreweries, and its warm climate also encourages beer consumption. There is also an accumulated base of pioneering breweries.
These include Bira 91, which is in the process of rebuilding after halting production, White Owl, which is strong in flavored beers, Simba, which has a distribution network, and the long-established Gateway Brewing Co. The rise of India-born brands is driving the market and offers clues for understanding the competitive landscape.
Exporting Japanese-style craft beer, which is highly regarded worldwide, has room to enter the premium market. Technology partnerships providing Japanese brewing technology to local microbreweries, and opening Japanese-style beer bars, are also promising. A business supplying brewing ingredients such as hops and yeast is another option.
Since alcohol regulations differ greatly by state, the starting point is checking the regulatory environment in your target region based on your mode of entry. It is also essential to identify the route that fits your company's strengths, such as product export, technology partnership, restaurant operation, or ingredient supply. Developing a strategy grounded in the market characteristics of a hub such as Bengaluru is effective.
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