The size of the Indian beer market was estimated at 6.7 million hectolitres in 2002-03, and beer consumption has been growing at a compounded annual growth rate of 7 % over the last nine years. Growth in 2002-03 was 11 %, as compared to the more modest rate of about 2.6 % for the global beer industry in 2001-02, a recent report from Rabobank's food and agri-business division said.

Naturally, foreign brewers like Heineken, Interbrew, Carlsberg and Kirin are attracted to the strong growth prospects and profit margins in the industry, where the top two players account for about 75 % of beer sales. Interestingly, the four southern States - for all their reputation of being conservative - account for about 45 % of total beer consumption, and growing at about 8 % per annum.

Future prospects are positive, largely because of changing demographic and social trends: besides the rise in income levels, the younger demographic is also fuelling the demand for beer. And, the number of women drinking beer is also on the rise.

17 September, 2003