Alcoholic beer market in Bhutan

Earlier Report Observations

The alcoholic beer market in Bhutan saw initial growth, with production increasing from 45 million liters in 2018 to 50 million liters by 2020. This expansion was supported by the country's economic growth and rising disposable incomes, which boosted consumer spending. Growing tourism inflows further lifted demand, while a shift in consumer preferences towards craft and premium beer varieties began to shape the market.

A sharp contraction occurred in 2021, as production fell to 24.6 million liters, heavily influenced by the prolonged effects of the COVID-19 pandemic on consumer behavior and economic activity. The market subsequently recovered, reaching 37 million liters by 2023. This rebound was aided by the continued popularity of at-home consumption and, as conditions normalized, by global trends favoring premium and low-alcohol beer options alongside a revival in tourism.

Concurrently, Bhutan's beer exports demonstrated strong growth, rising from 1.3 million liters in 2021 to over 21 million liters by 2025, reflecting the industry's increasing orientation towards international markets.

Production alcoholic beer in Bhutan

In kind, 2018-2021, K l

Top producers of alcoholic beer, 2018-2021

World map of production of alcoholic beer, 2018-2021

In 2019, Bhutan's alcoholic beer production reached its peak at 50,000 kiloliters, with the largest annual increase of 11.1% recorded that year. However, production then declined sharply. By 2021, output had fallen to 24,600 kiloliters, representing a 50.8% decrease compared to the previous year. Over the period from 2018 to 2021, production decreased by 45.3%, which translates to an annualized decline rate of 18.2%.

Annual dynamics of production in Bhutan in kind, 2018-2021, K l

In value, 2018-2021, K $ US

Bhutan's alcoholic beer production value has declined for three consecutive years. In 2021, the output was valued at 16,344 thousand US dollars, marking a 39.8% decrease from the previous year. From 2018 to 2021, production value fell by 52.3%, with a compound annual growth rate (CAGR) of -21.9%.

Annual dynamics of production in Bhutan in value, 2018-2021, K $ US

Exports alcoholic beer from Bhutan

Exports in kind, K l

The data shows irregular changes, indicating a volatile market environment. In 2019, alcoholic beer exports from Bhutan saw the largest annual increase of 83.5%. Exports peaked in 2020 at 2,737 kiloliters, but then fell sharply to 1,291 kiloliters in 2021, a 52.8% decrease from the previous year. Between 2018 and 2021, exports decreased by 2.3%, with an annualized decline rate of 0.8%.

Annual dynamics of product's exports from Bhutan in kind, 2018-2021, K l

From 2018 to 2021, India was the sole destination for Bhutan's alcoholic beer exports in volume terms, accounting for 100.0% of total flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Bhutan in kind, 2018-2021

Exports in value, K $ US

After increasing for two years, Bhutan's alcoholic beer export value declined. In 2019, the largest annual increase of 48.5% was recorded. Exports reached their highest point in 2020 at 1,485 thousand US dollars, but fell to 858 thousand US dollars in 2021, a 42.3% decrease year-over-year. Between 2018 and 2021, export value decreased by 2.3%, with an annualized decline rate of 0.8%.

Annual dynamics of product's exports from Bhutan in value, 2018-2021, K $ US

From 2018 to 2021, India was the primary market for Bhutan's alcoholic beer exports in value terms, consistently absorbing 100.0% of total exports.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Bhutan in value, 2018-2021

Imports alcoholic beer to Bhutan

Imports in kind, K l

Bhutan's alcoholic beer import volume has declined for two consecutive years. In 2020, imports amounted to 47 kiloliters, a steep drop of 73.3% from the previous year. Between 2018 and 2020, import volume decreased by 95.2%, with an annualized decline rate of 63.6%.

Annual dynamics of product's imports to Bhutan in kind, 2018-2021, K l

Throughout 2018 to 2021, India played a dominant role in Bhutan's alcoholic beer imports in volume terms, consistently accounting for 97.8% of total flows.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Bhutan in kind, 2018-2021

Imports in value, K $ US

Alcoholic beer imports to Bhutan have declined for two consecutive years. In 2020, imports were valued at 42 thousand US dollars, marking a sharp reduction of 66.1% compared to the previous year. Between 2018 and 2020, import value decreased by 94.3%, with an annualized decline rate of 61.6%.

Annual dynamics of product's imports to Bhutan in value, 2018-2021, K $ US

From 2018 to 2021, the geographical pattern of imports in value terms showed a strong dependence on India, which absorbed 95.1% of total flows.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Bhutan in value, 2018-2021