The Ultimate Guide to Starting a Brewery Business in India in 2025

Sakshi Jadhav, Sanvi Barjatya

09 May 2025 — 8 min read

Guide to Starting a Brewery Business

Gone are the days when beer in India meant just a few mainstream lagers served ice-cold at bars and parties. Today, a growing wave of beer connoisseurs appreciates the nuanced flavors of a well-crafted IPA, a smooth stout, or a fruity wheat ale. Specifically, the combined revenue in the 'Beer' segment of the alcoholic drinks market in India is projected to increase to $17.64 billion in 2029. This represents a total growth of about 22.1% over five years, equating to an approximate CAGR of 4.1%.

If you are passionate about beer and looking to tap into this effervescent market, here’s a complete guide on how to start a brewery business in India in 2025.

Overview of the Indian Brewery Industry
Market Analysis - Cracking the Code Before Brewing Success
A Step-by-Step Guide On How To Open A Microbrewery Business In India In 2025
Brewery Startup Cost Analysis

Overview of the Indian Brewery Industry

Rising Demand

India's beer market has shown strong growth, and the momentum is expected to continue. According to an Economic Times report, the Indian beer market is projected to grow at a CAGR of 10% during 2024–2025, driven by urbanization, changing lifestyles, and increasing alcohol acceptance in Tier 2 and Tier 3 cities.

Craft Beer Revolution

The rise of microbreweries and local craft beer brands has added a fresh twist to the Indian beer experience. As of 2024, India is home to more than 300 microbreweries, with states like Delhi, Maharashtra, Karnataka, Haryana, West Bengal, Pondicherry, and a few more leading the charge. Consumers are increasingly seeking unique flavors, small-batch brewing, and locally-sourced ingredients, factors that have propelled brands like Bira 91, Simba, White Owl, and Gateway Brewing Co.

Youth Demographics Driving Growth

With over 65% of India’s population below the age of 35, the youth are a powerful driving force behind this growth. This demographic is more exposed to global trends and is open to experimenting with flavors like IPAs, stouts, and wheat beers. Additionally, the rising middle class is showing a growing preference for premium and imported beer brands.

Market Analysis - Cracking the Code Before Brewing Success

Before starting the discussion of the brewery business in India, it’s essential to tap into the pulse of the market. With the changing consumer behavior and evolving drinking habits, understanding who drinks, where, and what they prefer can be the difference between brewing success and falling flat.

Target Audience & Demographics

India’s beer consumer base is growing not just in terms of size, but also in terms of taste and expectations.

Age Group: The sweet spot lies between 21 and 45 years, a segment that’s tech-savvy, socially active, and willing to experiment with new flavors.
Urban Centers: Metro cities like Mumbai, Delhi, Bengaluru, Hyderabad, Pune, and Kolkata are the primary hubs, thanks to a higher disposable income and cosmopolitan culture.
Consumer Preferences: There’s a noticeable shift toward premium and craft beers as consumers seek quality over quantity. They’re exploring wheat beers, IPAs, stouts, and seasonal brews over traditional lagers.

Key Competitors in the Indian Beer Market

Major Commercial Players:

These giants dominate the mainstream beer segment and are available pan-India:

Kingfisher (United Breweries)
Budweiser (AB InBev)
Carlsberg India

Rising Craft Stars:

Craft beer is the new cool, and these brands are riding the wave:

Bira 91 – The trailblazer in India’s modern craft beer movement.
Simba – Known for bold flavors like stout and jungle wheat.
White Rhino – India’s first craft beer to be exported to the UK and the US.

These homegrown craft brands are redefining how India drinks, especially among urban millennials and Gen Z.

A Step-by-Step Guide On How To Open A Microbrewery Business In India In 2025

Starting a brewery in India can be a lucrative venture, but it involves navigating through regulatory, financial, and operational complexities. Here’s a comprehensive step-by-step guide to help you get started:

Conduct Market Research

Understand Local Preferences: Study beer consumption patterns—lager vs. craft, flavor profiles, and alcohol content preferences.
Analyze Competition: Visit existing microbreweries to understand their pricing, customer base, and USPs.
Identify Demand Gaps: Look for underserved markets or cities with fewer craft beer options.

Create a Solid Business Plan

Your business plan should include:

Executive Summary: Vision, mission, and unique selling proposition.
Target Market: Age group, geography, and spending habits.
Product Line/Menu: Types of beer you’ll offer (wheat, IPA, stout, seasonal).
Pricing Strategy: Based on input cost, market positioning, and competitor pricing.
Marketing Plan: Digital promotions, influencer tie-ups, loyalty programs.
Funding Sources: Self-funding, angel investors, or startup loans.
Revenue Forecast & Breakeven: Estimate ROI and payback period.

Select a Suitable Location

Minimum Space: Microbreweries typically require 700–1,000 sq. ft, with an additional area for seating (if it's a brewpub).
Infrastructure Needs:
- Water Supply: Brewing requires around 5–7 liters of water per liter of beer.
- Drainage & Waste Disposal: Necessary for disposing of spent grains and wastewater.
- Zoning Compliance: Must adhere to municipal zoning regulations for commercial or food & beverage operations.

Know About Your Machinery Equipment

We have listed the crucial set of equipment that you will need to run your business efficiently. In case you are adding a brewery to your existing restaurant, you may also use the existing infrastructure for it.

Mashing tuns and Kettles
Refrigeration machine
PHEs (Physical Heat exchangers)
Electric Cabinet
Beer Filters
Boiler
Distribution Tanks
PLC touch-type process controller
Serving System
Lauter Tuns
Fermenters

Register Your Business

Legal registration is the foundation of legitimacy.

Choose a Business Structure: Sole Proprietorship, Partnership, LLP, or Private Limited Company.

Apply for Mandatory Licenses:

GST Registration
FSSAI License for food safety
Trade License from the local municipality
Fire Safety NOC
Shops and Establishment License

Legal Compliance & Challenges:

Setting up a brewery in India involves going through a complex maze of legal compliances and regulatory challenges. Each state has its own excise laws, meaning licensing requirements, duties, and approval processes vary significantly; what’s permissible in Karnataka might be prohibited in Maharashtra.

Dry states like Gujarat, Bihar, and Nagaland ban alcohol altogether, making them completely off-limits for breweries. On top of that, the licensing process is notoriously slow and bureaucratic; it can take 6 to a year to secure all necessary permits, including brewery licenses, excise duty registration, and retail permissions.

Find Your Head Brewer

Finding the right head brewer can be one of the toughest and most crucial parts of starting a microbrewery. Since the craft beer scene is still evolving in many Indian cities, even those from the food and beverage industry often lack brewing-specific expertise.

Your ideal head brewer should be more than just a beer lover; they need deep technical knowledge of brewing, fermentation, and quality control, paired with sharp analytical and managerial skills.

From maintaining consistency in batches to ensuring compliance and hygiene, they’ll be responsible for running the show behind the scenes. Bonus if they’re aware of local market trends and can pitch in on marketing campaigns or innovative brews to attract curious customers.

Take care of the Beer Production

Reaching the production stage doesn’t mean the process is over; it’s where the process will begin. Whether it’s your head brewer or a trained bartender, having skilled hands on deck minimizes wastage and ensures consistency.

The brewing process includes malting, mashing, boiling, and fermentation, each step requiring precision. Grains like barley or wheat are soaked and boiled to release sugars, which are then fermented in large tanks to produce alcohol.

A great brewer must understand not just the science but also the equipment, ingredients, and timing to optimize output and flavor. Quality beer isn’t just brewed, it’s engineered with care.

Promote Your Brewery Brand

Your microbrewery must fill a gap in the market to stand out in the craft beer scene, be it flavor, experience, or vibe. Start by identifying what your local audience craves and tailor your brand to meet that need.

Build a bold social media presence with catchy campaigns, a memorable brand name, and visuals that scream, “You need to be here!” Think beyond just good beer, create an ambiance people can't stop talking about.

Take inspiration from Pravesh Pandey of Byg Brewsky, who turned customer hesitation into excitement with a clever ‘October Fest’ campaign that made his craft beer a massive hit. Consistent marketing is key, host drink-themed events, tap into seasonal trends, and celebrate your bestsellers with festivals that spark curiosity and loyalty.

Brewery Startup Cost Analysis

Expense Category	Estimated Cost (INR)
Licenses and Permits	10,00,000 – 15,00,000
Equipment Purchase	50,00,000 – 1,00,00,000
Facility Lease/Rent	5,00,000 – 10,00,000
Initial Inventory	5,00,000 – 8,00,000
Staffing Costs	3,00,000 – 5,00,000
Marketing and Branding	2,00,000 – 4,00,000
Miscellaneous Expenses	2,00,000 – 3,00,000
Total Estimated Costs	77,00,000 – 1,45,00,000

Conclusion

Starting a brewery business in India is a rewarding venture if done with passion, compliance, and strong branding. While it is capital-intensive and regulatory-heavy, the growing demand for unique beer experiences makes it a lucrative opportunity in 2025. If you have a head for hops and a heart for hustle, this may just be your next big business venture.

FAQs

What is the estimated investment needed to start a brewery in India?

Estimated investment needed to start a brewery in India is INR 77,00,000 – 1,45,00,000.

Which city is famous for beer in India?

Panjim is the best city in India to drink beer.

Is a brewery business profitable in India?

Yes, the microbrewery business can be profitable in India, especially with the growing demand for craft beer.

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