Professional Documents
Culture Documents
Beverage Industry India
Beverage Industry India
Beverage Industry India
Grains &
Cereals
Fisheries
Meat & Poultry
Consumer
Foods
Indian Beverages
Alcoholic
Non-alcoholic
Tea, Coffee etc.
Carbonated soft drinks
Bottled fruit based beverages
Other Beverages
Very Little in Organised Sector
16%
30%
54%
Dabur
Pepsi
Others
Packaging
As per studies, the most preferred pack size is the individual
(small) pack which is convenient, and easy to carry and consume.
These are in great demand as out-of-home consumption is on the rise.
Consequently, there is a growing consumer base, and also intense
competition.
Tetrapaks are most popular among manufacturers as well as consumers.
Some companies are also offering their products in tins (e.g. Del Monte)
and PET bottles (e.g. Mazza); however, they are more expensive than
Tetrapaks, which adds to production costs, and, as a result, affects the
market price.
Growth Drivers
Indian Packaged Juices
Key Challenges
Among all challenges, it is difficult to control the cost of production at
the price points of juices, primarily because of rising food inflation. The
continuous, year-long supply of raw materials, and the non-stop
production of juices for the full season, is another production-linked
issue which needs to be managed carefully. Also of vital importance is
controlling transportation and logistics costs.
Packaged Juices are gradually cementing their place in the urban
household in the metros and Tier I cities; however, replicating the same
success in Tier II and Tier III cities is still a struggle as residents in these
regions still prefer fresh juices over packaged ones as they are
comparatively cheaper and also in sync with the traditional belief that
juices are best consumed freshly pressed. Challenging and changing
consumers perspective on value for money, to grab a regular spot in
the common household basket necessitates an aggressive stance
towards improving consumers awareness on the positive attributes of
packaged juices and their merits over locally available options.
Opportunities
The size of the non-alcoholic beverages market in India is likely to reach the Rs
11,000 crore-mark by 2015, industry body Assocham said on Wednesday.
Growing at a CAGR of about 20%, the non-alcoholic beverages sector is currently
worth about Rs 6,000 crore, according to a study on Opportunities in the Indian
Non-Alcoholic Beverages Market by the Associated Chambers of Commerce and
Industry of India (Assocham).
Domestic consumption of non-alcoholic beverage currently stands at about
17,500 crore litres and is likely to cross the 35,000 crore litres mark by 2015,
said Assocham secretary general D S Rawat while releasing the findings of the
study.
The non-alcoholic beverages industry includes carbonated beverages, sparkling
beverages, still beverages like distilled water, fruit juices, fruit-based drinks,
energy and sports drinks, sodas, hot beverages like tea and coffee and other
drinks that have no alcohol content.
Carbonated or aerated drinks account for about 30% of the total non-alcoholic
beverages market in the country. The size of the segment is currently estimated
at about Rs 1,800 crore, while the value of the fruit drink segment is estimated at
about Rs 1,200 crore and the energy drinks market is worth about Rs 600 crore.
Indian Beverages :
Alcoholic
Non-alcoholic
These days people are turning more health conscious. Because of this the
non-carbonated beverage segment has become one of the fastest growing
and most exciting businesses at the moment.
Manufacturers are offering the consumers better tasting, more healthful
alternatives.
Newer products that have efficacious amounts of nutritional ingredients are
being developed by the manufacturers. While all segments of the beverage
market are evolving, the growth seems to be directed more towards
healthy, light and low-calorie drinks.
Another key trend in beverage industry is the increasing preference for
healthy products. Consumers have become increasingly aware of health
and fitness-related issues. Additionally, due to greater disposable incomes,
particularly in urban areas, consumers are seeking healthier beverages
even if they are relatively more expensive. This trend is so far restricted to
urban consumers whilst for the rural consumer; manufacturers continue to
focus on offering economy pack sizes.
A number of young Indians indulge in outdoor sports and exercise
regularly, which has increased the demand for Satiety-inducing beverages
such as dairy-based drinks. Since the year 2007, the country has seen
numerous product launches in the field of nutraceuticals/ functional foods