Exploring Microbrewery business as a Growing Franchise Opportunity

Vaishnavi Gupta
Vaishnavi Gupta Nov 12 2019 - 3 min read
Exploring Microbrewery business as a Growing Franchise Opportunity
The growth of craft beer has opened a new growth channel for Microbrewery franchises in the Indian beer market.

India is a nation driven by the youth. The generation of youth, which is majorly contributed by the millennials, are driving the workforce and are living a fast-paced lifestyle that is keeping them away with the fun of socialising. So, they work hard on the weekdays and party even harder on weekends.

When it comes to partying, one cannot imagine the scenario without thinking of beer. The growing youth finding an escape in parties are driving the beer market enormously and hence, bars and pubs are growing faster than cafes. However, there is a notable change in preferences among Indian beer consumers. They no longer desire large, corporate brands but are taking the time out to explore the amazing flavours and combinations of artisanal brews.

The growth of craft beer has opened a new growth channel for Microbrewery franchises in the Indian beer market.

Millennials to Drive the Microbrewery Franchise

As per statistics, 33% of the total population in India is made up of millennials (aged 20-39 years old). The young crowd is the major contributor to the sales of beer in India. The concept of brewed beer is galloping in the country especially among the millennials. They are now turning away from the mass-produced beer brands and are opting for rich-flavour freshly brewed in-house beers. As per the consumers, the difference in the taste of both the beers is of no match, the tin-packed beer cans stand no chance in front of a freshly brewed beer glass. This is what attracts them even more. Freshly brewed beers offer them the opportunity to experiment with flavours minus the glycerine.

It’s the Quality, not the Price that Matters

Beer drinking in India is restricted to “bottled concept” and thus there is very less awareness about the beverage. Beer is best when consumed within 15 days. To extend the shelf-life of the beer for u to six months, mass-produced beer is often treated with glycerine as a preservative but the quality of the product suffers in the bargain.

With rising disposable incomes, rapid urbanisation & westernisation, the younger generations are seen inclining towards beer consumption and they don’t hesitate in spending some extra bucks for quality crafted beers.

Indians are now understanding beer better and thus seeking wide choices and better quality, which only craft beers can offer. There is a possibility of creating about 2,000 different varieties of beer. Youngsters are open to experimenting with various flavours of beer and are willing to shed extra money over the regular bottled beer.

Freshly Brewed Franchise Opportunity

With the rising demand for craft beers in India, new avenues in the franchise industry have also emerged. Realising the potential of craft beers in the country, many brands have started franchising their microbreweries such as World of Beer, The BrewMaster Micro-Brewery etc.

While the market is favourable for a microbrewery, one has to think of a great investment when they think of starting a microbrewery franchise. As per sources, the start-up investment cost of a microbrewery franchise ranges from INR 1-5 Cr, depending upon the area. One requires an area of 3500 sq. ft., which can also go up to 10,000 sq. ft. while one can expect a return on investment would be 20-40% within the payback period of 3-4 Years.

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