Partying with friends and spilling jam can cost you dearly. Because the beer companies are going to increase the price. beer price (Beer Price Hike) can increase by 10 to 15 percent. summer season beer (Beer) is beneficial for companies because at this time they have the most sales. Between March and July alone, 40 to 45 percent of the annual sales come. However, despite the start of the business season, the companies are not looking happy. Actually the Russo-Ukraine War (Russia Ukraine Crisis) seems to be overwhelming.
why beer will be expensive
Indeed, Russia and Ukraine are among the largest producers and exporters of crops such as barley and wheat. Both countries contribute 18 percent of the global barley production. They account for about 30 per cent of the global barley exports. The war could impact the global supply of barley. Barley is most commonly used in making beer. At the same time, wheat is also used properly. Barley prices have increased by 65 percent in a year. At the same time, the production of barley in the country has also decreased.
During the marketing year 2021, 16.7 lakh metric tonnes of barley was produced across the country, which is less than 1.72 lakh tonnes in the corresponding period a year ago. Rajasthan is the largest producer of barley in the country. Apart from this, the beer industry is also facing costly packaging costs and increased transportation costs. Companies are afraid of reducing margins. Due to which there is pressure to increase the price. Now it remains to be seen whether beer companies increase the price to reduce this effect.
India’s beer market boom
According to research firm Expert Market Research, India’s beer market was worth Rs 371 billion in 2020. It is expected to grow at an annual rate of 9 percent to reach Rs 662 billion in 2026. According to the Ministry of Food Processing Industries, the production of alcoholic drinks in the country has increased by about 23.8 percent between 2015-16 and 2018-19. This industry gives about 15 lakh jobs in the country. In 2019, about $ 48.8 billion was earned from sales.
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The Indian Council for Research on International Economic Relations in its report said based on industry estimates, the number of drinkers in the country increased from 219 million in 2005 to 293 million in 2018. By 2030, the number is projected to grow to 386 million.
