Why Are There Not More Microbreweries in India?

The question of why India has a relatively small number of microbreweries often arises due to various challenges and misconceptions about the craft beer scene. Factors such as stringent regulations, high taxes, and licensing hurdles, as well as a consumer base primarily attached to the alcohol strength of their drinks over taste, play significant roles. However, despite these obstacles, a vibrant and growing craft beer subculture is emerging.

Challenges for Microbreweries in India

Regulations and Licensing: One of the primary challenges faced by microbreweries in India is the stringent regulatory environment. Strict laws and high licensing fees can be prohibitive for smaller breweries looking to establish themselves in the market. These regulations can discourage entrepreneurship and innovation in the industry.

Taxes and Costs: High taxes and other compliance costs can significantly increase the overhead for microbreweries. Many small breweries find it challenging to compete with larger, more established beverage companies due to the financial demands of the industry.

Lack of Consumer Awareness: Indian consumers, especially those in urban areas, are increasingly becoming more aware of craft beer. However, there is still a prevalent perception that alcoholic drinks should primarily deliver alcohol content rather than flavor. This belief can limit the demand for microbrews, which often focus on offering unique and distinct tastes.

Existing Microbreweries in India

Despite these challenges, there are indeed several thriving microbreweries across different regions of India. Bengaluru, for instance, boasts more than 20 microbreweries, each with its own unique offerings. Some of the favorites include:

Toit The Big Picher The Biere Club Brewklyn Murphy’s Brewhouse Barleyz Vapour Biergarten

Other notable microbreweries across the country include:

NCR Gurgaon and Faridabad: 12 in total Punjab and Chandigarh: 6 in total Maharashtra: 10 in total Bangalore: 14 in total Delhi: Upcoming with plans to allow micro-brew pubs in malls and hotels

While the legal brewing situation can vary by region, the shift towards more accepting attitudes is clear. The excise department of the Delhi Government, for instance, has proposed a plan that will allow micro-brew pubs to operate in malls and hotels, providing a much-needed boost to the urban market.

Conclusion

India's microbrewery scene is on the rise, driven by increasing awareness and appreciation for craft beer, urban development, and regulatory shifts. With a growing number of microbreweries in cities like Bengaluru and others, the craft beer culture continues to expand. As more consumers discover the unique flavors and local character of these beverages, the future looks promising for microbreweries in India, despite the current challenges.