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Rising Per Capita Consumption in India

Rising Per Capita Consumption in India

India is the second most populated nation in the world, although, when we talk about the per capita consumption of beer, India is listed way lower than many other smaller countries.

If we look at the global scenario, surprisingly Czech Republic has the highest per capita consumption with the staggering number of 132 liters drank per individual every year. This position is closely followed by Germany with 107 liters per capita annually and by other nations like Austria, Ireland, Canada, and Poland etc. These numbers are subject to change with changing demographics and changing consumer preferences.

Lots of beverage start-ups have been opening all around the globe. From alcoholic beverages to non-alcoholic beverages, all brands are trying to portray some or the other message in order to capture their market. There are companies trying to market their product saying it’s “healthy/organic” with others saying that their product is “authentic and real”, marketing has become a crucial part to attract the consumers all across the globe.

So has been the case with India and other emerging nations like China, Brazil. India has been blessed with many national and international beverage companies, who are all hoping to tap the huge gap in the per capita consumption of beer. If we talk in numbers, unlike Czech Republic with 132 liters of beer per capita consumption, India is stands on 2 liters of beer consumed per capita annually. However, according to a study, India by 2025 will have a largest population with over 1.5 billion people. The interesting fact is India will be the youngest nation with 20% of the worlds below 25 year olds will be Indians with compared to 11% in China. This will not only increase the market for the potential beverage lovers but also will bring significant growth in the legal drinking age in India for alco. bev. companies. This is undoubtedly a huge hope for the companies which will help them leverage the gap in the beer consumption of India with the rest of the world.

St. ERHARD being one of the pioneering brands to expand in India is looking forward to driving this change and to be a part of this revolution. Our main aim is not to operate and mature beer drinking market but is to start at the grass-root level and to educate Indian and other Asian groups about beer and German beer culture.

India's Love for German Brands

India’s Love for German Brands

German brands have always been known for their quality and have enjoyed an excellent reputation among the Indian consumers. From a simple Nivea face cream to a complex BMW car, products produced in Germany are loved and appreciated within a large group of consumers in India.

With increasing globalization, India has become a lucrative market for International (especially German brands) to invest and expand in the Indian market. India has emerged as one of the strongest economies in terms of global brands entering the market in past two decades. Increasing disposable income of the middle class group, change in the buying preferences and emergence of social media has acted as a strong medium for brand promotions. This has been a catalyst for foreign brands to sell their products/services to the Indian consumers.

Germany offers a wide range of brands for the global market and covers areas like personal care, automobile, engineering, food and beverage, pharmaceuticals and many more. This doesn’t just portray how strong the German economy is but it also tells us how the whole world dependent on the German brands. If we talk about some popular German brands which have made their marks globally, BMW & Audi have emerged as one of the elite and reliable automobile brands, Adidas & Puma have placed themselves in sports apparel industry and many other brands which we have now become used to.

Indian buyers associate German brands with quality. According to one study, Indian consumers with the gross monthly income between Rs. 18,000- 42,000 and above prefer and love German brands. Brands like Adidas, BMW, Bajaj Allianz & Mercedes-Benz are among the most famous brands in India. German products aren’t just known for their “Made in Germany” tag but also for their high durability and innovative design. This surely adds on to the cost of the product/service offering and makes it relatively expensive for the Indian consumer. This is mainly the reason why German products in India fall into the category of “high prestige” products and are usually owned by upper income groups as a status symbol.  

As all other German brands I mentioned above, St. ERHARD is one of them. It doesn’t just rely on the fact that it’s “Made in Germany” but also portrays its premium quality and great taste of German beer. We in the near future want to become the favorite German beverage for Indian consumer. We at St. ERHARD want to bridge the gap between two nations by adding one more premium brand to the wide category of the brands representing German quality and culture.  

Concept of Social Drinking in India

Concept of Social Drinking in India

Globalization is now slowly bringing the idea of social drinking to India. Many parts of India still have orthodox thinking. The perspective towards the people who drink is like being drunkards rather than drinkers. This means that the aim among most of the people is to get as drunk as possible. This perspective of drinking alcohol is changing slowly as the awareness about alcohol is increasing between educated people and with the corporate culture of multinational companies.

In big developed cities like Bangalore, Mumbai, Pune and so on, drinking socially just to de-stress themselves is becoming a popular habit, especially among the people working in public sectors, IT firms and BPO’s etc.

Liquor in India is fairly easy available and most of the brands are also brewed locally. In order to make it cheap and to increase the sales volume, quality is put on stake by adding adulterated products, glycerin and so on.

Generally the attitude towards drinking alcohol in India varies in different parts of the country. At some point it feels like it depends on the amount of money one has. For those who have too much, drinking is just a part of civilized lifestyle. For those who have little, drinking often becomes a way to escape from tension and to forget what bad has happened and so on. 

Now with an increase in the earnings of people, it’s making social drinking more popular in India. The spending power has been gradually increasing and also the corporate landscape has been changing lately. With more and more famous foreign brands available in India, the registered growth in the same had resulted in double digits. The perception about drinking alcohol needs a huge shift.

I hope St. ERHARD will act like a catalyst in making this huge change in the mindsets of the people.

Beer In India

Beer: For India, by India, to India