Recent State-level legislative shifts and reforms boost beer category in the country: UBL

City-based United Breweries Ltd. (UBL), part of the HEINEKEN Company, on Thursday said that the recent State-level reforms pushed the growth of beer sector in the country.

For instance, UBL stated Karnataka’s AIB (Alcohol-in-Beverage) based duty structure, which taxes beverages according to alcohol content, has contributed to approximately 55% of the beer industry growth in the first month following implementation.

Improved retail availability in Jharkhand supported approximately 55% category growth in H1 FY2026, while reforms in Maharashtra contributed to around 35% category growth during the same period, the company highlighted.

Across these markets, as the only national giant, UBL has grown faster than the category, supported by its portfolio strength, product-market fit and improved affordability, UBL claimed.

Vivek Gupta, MD & CEO, UBL, said: “We have strong conviction in the future of beer in India. As the market leader, we don’t just want to participate in category growth. We want to help create it through greater awareness, affordability, and availability.’’

With iconic brands, a growing premium portfolio, sharper execution and a future-first approach to technology and productivity, UBL was well positioned to shape and lead the next phase of growth for the beer industry and create sustainable value, he added while speaking a session on strategic priorities and growth agenda at a UBL event in Goa.

Tristan van Strien, Global Director, Investor Relations, HEINEKEN N.V., said: “India is one of HEINEKEN’s fastest-growing volume markets and an increasingly important growth engine for the company.’’

Emerging trends in beer consumption

UBL observed that some strong structural fundamentals were underpinning the Indian beer market. More than 25 million young adults enter the legal drinking age every year, while rising disposable incomes, urbanisation and evolving consumer preferences are supporting the category growth. India remains significantly underpenetrated, with annual per capita beer consumption of 2.5 litres compared with a global average of around 25 litres. Also, while wine and spirits have seen a decline in share of throat of 0.7% points and 0.1 % respectively, beer has increased its share by 0.6%.

Against this backdrop, UBL sees a big opportunity to further grow the category through greater awareness, affordability and availability, the firm said.

However, UBL pointed out that beer currently faced a 1.3x higher tax burden per unit of alcohol in India compared with IMFL, despite its lower alcohol content. Approximately 65% of the retail price of beer comprises excise duties, creating scope for greater affordability through pricing and volume-based taxation reforms, it urged the regulatory bodies and governments.