Recent legislative changes and reforms at the state level are strengthening the country’s beer category: UBL

Vivek Gupta, MD & CEO, United Breweries Ltd. | Photo credit: Special arrangement

The city company United Breweries Ltd. (UBL), part of HEINEKEN, said on Thursday that recent reforms at the state level have shifted the growth of the country’s beer sector.

For example, UBL said that Karnataka’s Alcohol-in-Beverage (AIB)-based tax structure, which taxes beverages based on alcohol content, contributed to about 55% growth in the beer industry in the first month after implementation.

Improved retail accessibility in Jharkhand supported around 55% category growth in the first half of FY26, while reforms in Maharashtra contributed to around 35% category growth over the same period, the company pointed out.

In all these markets, as the only national giant, UBL grew faster than the category, supported by the strength of its portfolio, product market fit and improved affordability, UBL claimed.

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

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

Tristan van Strien, Global Head of Investor Relations, HEINEKEN NV, said: “India is one of HEINEKEN’s fastest growing volume markets and an increasingly important driver of the company’s growth.”

New trends in beer consumption

UBL noted that some strong structural fundamentals underpinned the Indian beer market. More than 25 million young adults enter the legal drinking age each year, with rising disposable incomes, urbanization and evolving consumer preferences fueling this category’s growth. India remains well below average, with annual per capita beer consumption of 2.5 litres, compared to the global average of around 25 litres. While for wine and spirits there was a drop in the share of the throat by 0.7 percentage points, or 0.1%, for beer its share increased by 0.6%.

In this context, UBL sees a great opportunity to further grow the category through greater awareness, affordability and availability, the firm said.

However, UBL pointed out that beer currently faces a 1.3x higher tax burden per unit of alcohol in India compared to IMFL, despite its lower alcohol content. About 65% of the retail price of beer is excise tax, creating room for greater affordability through pricing and volume-based tax reforms, he urged regulators and governments.

Published – 04 Sep 2026 0:20 IST