India's beer market tilts to cans as urban consumers change drinking habits: AB InBev

Budweiser can

Rising urbanization is changing the way people consume beer, with more demand for canned beer than traditional glass bottles, said Kartikeya Sharma, President, AB InBev India, the world's largest brewer. The company is seeing sustained momentum in cans as younger consumers stock up at home, avoid breakage, and prefer the ease of chilling and carrying aluminium over glass, Sharma told Moneycontrol in an interview.

AB InBev, which counts popular beer brands Budweiser, Hoegaarden and Stella Artois in its portfolio, sees India among its top 3 markets outside the US for Budweiser. It is the second biggest player in the Indian beer market with a market share of about 20 percent.

"Demand is significantly shifting from bottles to cans. People prefer cans because it is more consistent… it cools faster… if you’re on a two-wheeler you don’t want glass breaking… It’s more convenient to store at home," Sharma said explaining the trend, fuelled by rapid urbanisation across cities.

"The industry is at around 30% cans… we over-index on cans. In carbonation categories, whether it is Coke Zero or Pepsi Max… cans are already normalised. Beer is following the same trend," he added. He did not specify the exact break up for bottle vs can sales for AB Inbev in India.

The comments come as the industry overall is facing a shortage of aluminium cans amid excess demand.  There is an annual deficit of 12-13 crore units of 500 ml cans, which account for almost 20 percent of total beer sales in the country, and it may also lead to a shortfall of around Rs 1,300 crore in government revenues, according to the Brewers Association of India (BAI).

When asked about the ongoing shortage, Sharma said, "We dealt with the speed bump by being very prepared with our forecasting and our manufacturing readiness. So, we didn't feel necessarily any pain despite cans representing a much higher mix in our volumes than they do in the industry overall. Our partners are working very well with us to continue to make the requisite investments."

Beer consumption is no longer a male-only occasion 

The brewer flagged rising occasions for beer consumption in India, thanks to urbanisation and more women joining the workforce.

"Socialization for us is a very big trend. The second trend that we see, which is becoming bigger and bigger, is this idea of an experience model, where people again are seeking out newer experiences, novel experiences.  You've got socialization, you've got the experience economy, and then you've got mixed-gender participation, where most experiences now involve men and women in full measure, that is an absolute trend across India, where, you know, consumption of beer is no longer only a male drinking occasion," Sharma said.

Their premium mix has jumped from roughly 30% before Covid to about 65% now, showing how sharply consumers are trading up. Budweiser has been growing at strong double-digit rates over the past couple of years, and Corona’s momentum has been equally solid.

ICC partnership

Meanwhile,  the International Cricket Council (ICC) has named AB InBev as the Official Beer Partner for all major ICC tournaments starting in 2026. The partnership will be led by Budweiser 0.0, Budweiser’s no-alcohol beer in India, with other ABI mega brands activating in Europe and Africa.

"We are thrilled to announce our partnership with the International Cricket Council. Budweiser has been at the heart of celebrations in India for two decades, and as the leading premium beer brand in the country, this is the perfect moment to bring our passion for celebration to the sport that brings millions together," Sharma said.