India’s liquor market bounced back in the year ended March, with spirits volume up 4% and beer volumes also rising 4%. The pull came from stronger premium spirits demand, especially in urban areas, while mass-market sales stayed softer amid inflation and heavy taxes, reshaping what consumers are reaching for as FY26 begins.
United Breweries, the maker of Kingfisher beer, is planning to withdraw from unprofitable regions after soaring input costs and rigid state-controlled pricing squeeze margins. With profitability taking a hit, the company says it will make hard choices on supply levels, promotions, and which markets to prioritize to protect financial viability.
Your news, in seconds
Get the Beige app — every story in 60 words, updated hourly. Free on iOS & Android.
Beer makers say a demand boom is colliding with rising production costs and a tightening glass-bottle supply. Brewers are urging state governments to allow a 15 to 20% beer price increase and to speed up settlement of pending financial dues. Industry players argue the bottleneck in packaging is constraining output and squeezing margins.
Heineken’s India operations recorded modest, low single digit revenue growth in the March quarter of 2026. While the overall picture stayed muted, premium beer delivered strong gains, reflecting the company’s push to expand its premium portfolio. It also introduced a new variant aimed at mainstream drinkers, though updated accounting policies muddled volume reporting.
India’s beer industry is facing “major trouble” as war-related cost spikes, supply chain disruptions, and government pricing controls squeeze margins. United Breweries CEO Vivek Gupta says support is needed to keep growth and innovation alive. On the ground, consumers are trading down to cheaper options and buying smaller pack sizes, worsening demand pressure.
Swipe through stories, personalise your feed, and save articles for later — all on the app.
