Beverage Overview

8/20/2019 Beverage Overview

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Grand project: Synopsis

Comprehensive project report

On

“the role of advertising in motivating consumer brand preference

for beverages”

Submitted by

Harshil thakkar-5151Pradeep Vadher-5123


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About the Bevera

A beverage is a drink

almost always largely

(both flat or carbonat

drinks, Alcoholic beve

milk. Commonly, drin

steel or aluminum ca

"TetraPak" or others.

cold aseptic filling to

technology.

The beverage is main

alcoholic and nonalco

further of two types b

juices, Coffee, Tea, S

fruit content and grain.

e Industry / sector

specifically prepared for human consumpt

consist of water. Drinks often consumed

ed),Juice based drinks, Soft drinks, Spo

ages like beer or spirits ,Coffee, tea ,Dai

s are filled into containers, like glass or

ns as well as cardboard supported pac

Filling of beverages can be done cold, h

mention the latest trend of beverage

ly categorized into two major categories

holic nature of the drink. Non-Alcoholic

sed upon carbon content. These beverag

da, Colas. The Alcoholic beverages are

It may be Wine, Brandy, Whisky or Beer.

ion. Beverages

include: Water

ts and Energy

y products like

plastic bottles,

ages, like the

t, ambient and

marketing and

ased upon the

beverages are

s contain Fruit

ased upon the


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Indian Beverage Industry

India has a population of more than 1.21 Billions which is just behind China. And

will surpass China to become the World largest in terms of population. BeverageIndustry which is directly related to the population is expected to maintain a

robust growth rate. The price stability throughout the year has contributed to the

increase in domestic liquor sales.

The Indian beverage market offers hot options. According to Dabur, the fruit

beverages industry in India now stands at Rs 1100 crores (approx. Euro 180

million) and the market has grown at the rate of 30% where Dabur India, through

the new launch Real Burrst, is looking at establishing a market share of 4-5% in

next 2-3 years. Part of the industry of fast moving consumer goods is also the

beverage industry. The total beverage industry in India is being estimated togrow at 17% this year, according to experts. "Food and beverages segment has

not suffered despite the slowdown in the economy.

To foreign observers of the market, the figures might sound unbelievable, as

Western markets are saturated and have not seen such figures for long time. But

in India, various positive factors drive the beverage markets. One is the rising

number of people in the middle class with extra money to spend on new

beverages like wine, new brands of imported whiskey, or the fancy energy drinks,

some of which are really good to enable people to work longer, to listen longer

during conferences, and even to party longer and have fun. Leader in thissegment is Red Bull, but some other good and very effective drinks – one even

very healthy - are already or soon entering the market. Another factor is the

sheer size of the number of people in India. Even the rural households, as long

as the monsoon is good, get purchasing power and can participate in consumer

markets. Where ever the purchasing power is still not big enough, companies

offer smaller packs for Rs. 10 or Rs. 5, especially to be seen in the snack market.

Hot summers in India also help a bit to sell beverages.

The large untapped market potential for store-bought non-alcoholic beverages, in

particular carbonated beverages, juice based drinks and energy or sports drinksamong urban/suburban consumers in India. Approximately 120 billion liters of

beverages are consumed by Indians every year, but only 5% represent store-

bought packaged beverages. The majority of Indian consumers (75%) still

consume non-alcoholic store-bought beverages ‘less than once a day’,

highlighting a large untapped market opportunity, particularly in the carbonated

drinks and juice or juice-based categories (estimated to be worth $1.5 Billion and


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$.25 billion respectively). In order to increase consumption and penetration of

such beverages manufacturers will have to address the two primary reasons why

some Indians abstain entirely, that is, health concerns and undesirable taste.

The study investigates consumption frequency and habits, the importance of

various product attributes, and brand preferences across age, household income,city in India and beverage category. This study has implications for

manufacturers, distributors, retailers and investors hoping to capitalize on the

growth of these beverage categories in India and distinguish themselves in the

increasingly crowded marketplace.

India is a booming market for the beverage industry as well. It already accounts

for about ten per cent of global beverage consumption today. This means that

the country has the third-largest beverage consumption after the USA and China.

But that is not the end of the road. Market analyses indicate that beverage sales

in India will be increasing by more than 60 per cent between 2012 and 2015.Since India is (still) a country of tea and coffee drinkers, packaged cold drinks

have enormous potential. Packaged water, beer, spirits and carbonated drinks

are recording what rates are in some cases high double-digit growth. All in all,

annual per capita consumption of packaged beverages is 8.7 liters in 2012.

Demand for milk and milk-based beverages are also rising. India is the world’s

biggest producer and consumer of milk, since milk plays a major role in the

Indian diet. The consumption of milk and milk-based beverages has increased by

an annual average of 2.7 per cent in the last four years and most of them (65 per

cent) are sold “loose” / unpackaged. The proportion of the market accounted for by packaged milk 6 and dairy products are increasing, however. In the past four

years, for example, demand for milk filled in pouches has grown by 4.5 per cent

annually, while the figure for milk in cartons is about 25 per cent. The rising

consumption is making it necessary for appropriate investments to be made by

the beverage industry.

The Indian beverage industry faces over supply in segments like coffee and tea.

However, more than half of this is available in unpacked or loose form. Indian hot

beverage market is a tea dominant market. Consumers in different parts of the

country have heterogeneous tastes. Dust tea is popular in southern India, whileloose tea in preferred in western India. Coffee is consumed largely in the

southern states. The size of the total packaged coffee market is 19,600 tones or

$87 million.


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The total soft drink (carbonated beverages and juices) market is estimated at 284

million crates a year or $1 billion. The market is highly seasonal in nature with

consumption varying from 25 million crates per month during peak season to 15

million during offseason. The market is predominantly urban with 25 per cent

contribution from rural areas. Coca cola and Pepsi dominate the Indian soft

drinks market. Mineral water market in India is a 65 million crates ($50 million)

industry. On an average, the monthly consumption is estimated at 4.9 million

crates, which increases to 5.2 million during peak season.


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FACTORS DRIVING DEVELOPMENTS IN INDIAN BEVERAGE

SECTOR

India is a growing and developing country which is having a very high economicgrowth with the drastic increase into the population size. Due to the developing

economic condition, there is increase in the competition among the

manufacturers, retailers, dealers to promote their products at competitive prices.

The increase in the India population has given a high demand of beverage

market products. The Indian beverage market is segmented into the two major

segments –Alcoholic and Non-Alcoholic Beverages.

Again these categories of beverages are sub-divided into the carbonated and

fruit based drinks. Tea and Coffee also contributed majorly into the Beverage

Industry.

Indian Beverage market distribution and marketing channel is highly networked

and has a very approach to the customers. Due to the globalization and

technological developments there is highly innovative products are coming into

the Indian Beverage markets which are appreciated by the Indian population. In

India, here are various forms of beverage market get to be seem in the form of

retailers, Restaurants, Coffee shops, Sport events, Hotels etc.

There are certain factors which are driving developments into the Indian

Beverage sector:

Economic growth

Population growth

Competition for Raw materials

Power of retailers

Globalization / Regionalization

Research & Development

Technological Developments

Food safety and regulation Consumer Demands and trends


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PACKAGING OF BEVERAGES

The beverage industry is one among the front-liners where massive investments

are being made for expansion and technological up gradation. The packaging of beverages both carbonated and non-carbonated, is a complex technological

branch in the Food Processing /Packaging industry. The traditional returnable

glass bottle has given way to newer plastic containers as well as cartons. The

current trend is to improve the conventional containers, extend their share in the

large market, extend the shelf-life of the products, provide greater consumer

convenience and ultimately to produce economic packages. The changing Indian

scenario, with implementation of various technologies and market promotion

activities, has changed the scope for this industry exponentially.

The Indian soft drink market is worth Rs. 21,600 million a year with a growth of around 7%. The soft drinks segment had grown to Rs. 1, 05,000 million in the

year 2005. The production of soft drinks has increased from 6230 million bottles

in 1999-2000 to 6560 million bottles during the year 2001-2002.

The alcoholic beverages industry covers Indian Made Foreign Liquors (IMFL),

country liquor and beer. IMFL includes Carbonated Beverages in PET Bottles

wine, whisky, gin, rum, brandy and other white spirits. IMFL industry in India is

roughly valued at Rs. 28,000 crores, growing at a rate of 9-10% per annum in

volume terms. The Indian beer market estimated currently at Rs. 7,500 million a

year has been growing at the rate of 15% per annum.

The packaging requirements for all types of beverages are:

• Absolutely leak-proof and prevent contamination

• Protect the contents against chemical deterioration

• No pick up of external flavors

• Be hygienic and safe

• Retain carbonation in the case of carbonated beverages

• Economical, easy to use and dispose

• Good aesthetic appearance


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BARRIERS TO TAKING ‘FUNCTIONAL’ BEVERAGES

MAINSTREAM

Despite this flurry of activity, the market is still plagued by low levels of awareness and a lack of sophistication in consumer choices. Price remains astumbling block. Public concerns over safety and quality of beverages have beenaggravated by research findings (and the subsequent controversy) over alarminglevels of pesticide residues in bottled water and soft drinks. Skepticism from thescientific community continues to limit product endorsement. Furthermore, thereis a lack of detail and clarity in food safety regulation regarding nutraceuticalsand functional beverages, and regarding health claims.

Within the beverage industry there is inadequate understanding of how to take

traditional ingredients into the modern food processing environment. And then of

course, there is competition from other products such as dietary supplements.Finally, the retail sector, despite its growth, is still mostly unorganized and this

limits the ability to differentiate health and wellness products through the

allocation of exclusive shelf space devoted to this category.

CONVERTING BARRIERS INTO OPPORTUNITIES

To overcome these challenges, beverage suppliers need to approach the marketwith a multi-pronged strategy for increasing penetration. It can be given as follow:

Price resistance can, to some extent, be overcome by moving from

‘imported’ to manufactured in India’ products. For example, imported

‘Gatorade’ cost INR45 per 200 ml bottle. Now, made in India, it costs

INR25.

Substitution or modification is in some ways easier to execute than

addition. (Examples of substitution would be herbal tea replacing regular

tea or soy milk replacing regular cow’s milk. Examples of modification

would be ‘low-fat’, ‘no-fat’, ‘lite’ variants of established beverage brands). The growing trend towards on-the-go consumption/out-of-home

consumption (at the workplace, in schools, colleges and gyms) presents

suppliers with new place and form of consumption options (for example,

vending machines for dispensing health drinks at schools).

Abandoning the ‘one-size-fits-all’ positioning and generic selling points of

the past, in favour of targeted and specific messaging based on validated


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health benefits is likely to be more effective to the better informed middle

class today.

Leveraging the intrinsic appeal of traditional Indian ingredients such as

ayurvedic, herbal or oleoresin ingredients, but delivered in a modern, safe,

convenient and consistent form, or packaging and branding traditional

Indian health drinks such as buttermilk and lassi, could create whole new

markets that derive their strength from known and trusted traditional

ingredients or drinks.

In the end, beverage suppliers who unlearn many of the long-held

misconceptions about Indian consumers and respond instead to their

changing needs and priorities will be best placed to maximize the health

and wellness opportunity in this large and growing market.


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INDIAN BEVERAGE MARKET PERSPECTIVE

With the overwhelming success of the Green and White Revolutions, India is now

fervently poised for the beverage revolution. The entry of multinationals,aggressive rise of commodity branding and low cost of technology is changing

the economics of the Indian food & beverage industry. The rise of aggressive

regional players making forays into categories where entry barriers are low and a

boom in Indian beverage markets and the rising need for these products are the

key reasons for this growth in beverage business.

The soft drinks perspectives the demand is quite high in the category of

carbonated drinks, the market demand of beer, whisky is also quite high in the

upper middle segment at restaurant and hotels. The trend of white spirits like

Vodka, Bacardi rum also preferred over other drinks. These drinks are said tohurt less than Indian whiskey, as unlike most Indian whisky, these white spirits

are not made out of molasses.

When it comes to Energy drinks, the taste of energy drinks are not liked by many

of people, as for some, these taste like cough syrup. And they are also highly

priced. But there are also people who like to mix it, for example many like Vodka

mixes of Vodka with Red Bull.


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COCA-COLA COMPANY

Company overview

Established in 1886, Coca-Cola is the world’s most ubiquitous brand. Thecompany and its subsidiaries are present in over 200 countries employingover 49,000 individuals and generating revenues to the tune of US$ 21billion. The Coca-Cola Company markets four of the world’s top-five softdrink brands; its beverage products encompass nearly 400 brands,including non-carbonated beverages such as waters, juices, sports drinks,teas and coffees. The company’s net income registered a CAGR of 7.2per cent over a 10-year period. Till date, Coca-Cola has invested over US$ 1 billion in India and employs over 5,000 people. The Coca- Colasystem in India comprises 25 wholly owned Bottling operations and

another 35 franchisee-owned bottling operations. A network of 27contract-packers also manufactures a range of products for the company.

Business in India

Coca-Cola is a leading player in the Indian beverage market with a 60 per

cent share in the carbonated soft drinks segment, 36 per cent share in fruit

drinks segment and 33 per cent share in the packaged water segment.

Outsourcing distribution and manufacturing

Coca-Cola India minimized its capital needs by meeting newmanufacturing capacity needs through external co-packers, outsourcing its

distribution and meeting its in-market-refrigeration and cooling needs by

giving incentives to retailers to self-fund the same through its “Own Your

Fridge Scheme.” Today, the company has an extensive rural and urban

distribution network. Coca-Cola adopts a hub and spoke format

distribution network ensuring that large loads travel longer distances and

short loads travel short distances. The company has increased its village

penetration from 9 per cent in 2000 to 28 per cent in 2004 and covers

approximately 175,000 villages today. Rural India now accounts for 30 per

cent of Coca-Cola’s sales volumes.

Factors for success

Coca-Cola has succeeded in spite of an extremely price-sensitive

consumer with entrenched beverage consumption habits – tea, nimbu-

paani (lemonade) and a fragmented and geographically dispersed retail

market, and a high tax environment.


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Diverse product portfolio

In keeping with its goal of emerging as the single largest entity in the

beverage market, Coca-Cola has a presence in multiple segments.

Carbonated soft drinks (Coke, Diet Coke, Fanta, Thums Up, Sprite andLimca)

Fruit juice based drinks (Maaza)

Powdered soft drinks (Sunfill)

Coffee and tea (Georgia)

Bottled water (Kinley) and Bottled soda (Kinley Soda)

The company leverages this comprehensive portfolio, which includes a

mix of its global brands as well as the locally acquired brands like Thums

Up, Limca and Maaza

It sells these beverages in multiple volumes of 200 ml, 300ml, 500ml, 1.5 l

bottles, tetra packs as well as through vendors (fountain machines)

Explores new markets with the introduction of new drinks (Georgia, coffee

and tea segment) and flavours (Vanilla Coke)

Brands

Coca –Cola

The world’s favorite drink, the world’s most valuable brand and themost recognizable word across the world after OK. Coca –Cola has

a truly remarkable heritage. From a humble beginning in 1886, it is

now the flagship brand of the largest manufacturer, marketer and

distributor of non- alcoholic beverages in the world.

Availability:

GLASS PET CAN FOUNTAIN

200ml,300ml,500ml,1000ml 500ml,1.5l,2l,2.25l,500ml+100ml 330ml Various

sizes


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Thums up

It is a leading sparkling soft drink and most trusted brand in India.

Originally introduced in 1977, Thumps up was acquired by the Coca Cola

Company in 1993.This brand known for its strong, fizzy taste and its

confident, mature and uniquely masculine attitude.

Sprite

Sprite is global leader in the lemon line category, is the largest sparlking

beverage brand in India. Launched in 1999, Sprite with its cut thru

perspective has managed to be a true teen icon.


200ml,300ml,500ml,1000ml 500ml,1.5l,2l,2.25l,500ml+100ml 330ml Various

sizes

FANTA

Fanta has entered in Indian market in the year 1993.Fanta stands for its

vibrant color, tempting taste and tingling bubbles.


200ml,300ml 500ml,1.5 L, 2

L,2.25 L,500+100

ml

330ml Various sizes


200ml,300ml 500ml,600ml,1250ml,1500ml,2000ml,2250ml 330ml Various

sizes


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LIMCA

Born in 1971, Limca has remained unchallenged as the No. 1 sparkling

Drink in the cloudy lemon segment. The main point in the brand is the

“Freshness”.


200ml,300ml 500ml,1.5 L, 2

L,2.25 L,500+100

ml

330ml Various sizes

PULPY ORANGE

The company developed a process that eliminated 80 % of the water in

orange juice. Forming a frozen concentrate that when reconstituted

created orange juice.

Available in 400 ml, 1 L and 1.25 L and also in PET pack size.

MAAZA

Mango, it is a fruit associated with good times like no other and calledthe king of fruits.

PET 1.2 L PET 600

ml

200ml

RGB.

250ml

RGB

250ml

PET

Pocket

200ml

Rs.45 RS.25 Rs.8 Rs.10 Rs.15 Rs.15

KINLEY

Kinley water understands the importance and value of the life giving

fore. Kinley water comes with the assurance of safety from the Coca-

Cola Company. Coca-Cola introduced Kinley with reverse osmosis

along with latest technology.


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Available in 500ml, 100ml in PET.

GEORGIA GOLD

Introduced in 2004, the Georgia gold of tea and coffee beverage is perfectsolution for the office and restaurant needs! It is available at quick service

restaurant, Cinemas, Airports and in Cooperates across all major metros

in India.

Hot Beverages: Espresso, Americano, Cappuccino, Caffe Latte,

Machaccino, Hot chocolate, Cardamom Tea

Cold Beverages: Iced Teas, Cold Coffee


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PEPSICO INDIA

Company Overview

PepsiCo entered India in 1989 and has grown to become one of the

country’s leading food and beverage companies. One of the largest

multinational investors in the country, PepsiCo has established a business

which aims to serve the long term dynamic needs of consumers in India.

PepsiCo nourishes consumers with a range of products from treats to

healthy eats that deliver joy as well as nutrition and always, good taste.

PepsiCo India’s expansive portfolio includes iconic refreshment beverages

Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options

such as Diet Pepsi, hydrating and nutritional beverages such as Aquafinadrinking water, isotonic sports drinks - Gatorade, Tropicana 100% fruit

juices, and juice based drinks – Tropicana Nectars, Tropicana Twister and

Slice, non-carbonated beverage and a new innovation Nimbooz by 7Up.

Local brands – Lehar Evervess Soda, Dukes Lemonade and Mangola add

to the diverse range of brands.

The group has built an expansive beverage and foods business. To

support its operations, PepsiCo has 36 bottling plants in India, of which 13

are company owned and 23 are franchisee owned. In addition to this,

PepsiCo’s Frito Lay foods division has 3 state-of-the-art plants. PepsiCo’sbusiness is based on its sustainability vision of making tomorrow better

than today. PepsiCo’s commitment to living by this vision every day is

visible in its contribution to the country, consumers and farmers.

Brands

Foods

PepsiCo’s food division, Frito-Lay, is the leader in the branded salty snack market and all Frito

Lay products are free of trans-fat and MSG. It

manufactures Lay’s Potato Chips; Cheetos

extruded snacks, Uncle Chips and traditional

snacks under the Kurkure and Lehar brands. The

company’s high fiber breakfast cereal, Quaker Oats, and low fat and


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roasted snack options enhance the healthful choices available to

consumers. Frito Lay’s core products, Lay’s, Kurkure, Uncle Chips and

Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats

and all of its products contain voluntary nutritional labeling on their

packets.

Beverages

PepsiCo India’s expansive portfolio includes iconic

refreshment beverages Pepsi, 7 UP, Nimbooz,

Mirinda and Mountain Dew, in addition to low

calorie options such as Diet Pepsi, hydrating and

nutritional beverages such as Aquafina drinking

water, isotonic sports drinks - Gatorade,Tropicana100% fruit juices, and juice based drinks

– Tropicana Nectars, Tropicana Twister and Slice.

Local brands – Lehar Evervess Soda, Dukes

Lemonade and Mangola add to the diverse range of brands.

PEPSI

Pepsi is a hundred year old brand loved by over 200

million people worldwide. The largest single selling softdrink brand in India is the ubiquitous' socialiser’ at every

occasion. Youngistaan loves it. 200 million people

worldwide love it. But what has made Pepsi the single

largest selling soft drink brand in India is actually a

formula concocted a century ago in a far away continent

7UP

7UP, the refreshing clear drink with natural lemon and lime flavor wascreated in 1929. 7UP was launched in India in 1990 and its international

mascot Fido Dido was used for advertising in 1992 to position the brand as

a cool drink for youngsters. 7UP’s brand communication is premised on the

product’s natural lemon flavor, guaranteed to provide uplifting lemon

refreshment that raises one’s spirits.


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Aquafina

In India, Aquafina’s journey began with the Bombay launch in

1999 and it was rolled out nationally by the year 2000. On thestrength of its brand appeal and distribution, Aquafina has

become one of India's leading brands of bottled water in a

relatively short span. Bottled across India in 19 plants,

Aquafina ensures its availability across more than half a

million outlets. To cater to varied consumer needs and

occasions, it is available in various pack sizes like 300ml,

500ml, 1 L, 2 L bottles and in bulk water jars of 25lts.

Gatorade

Gatorade, World’s No.1 Sports Drink, was indeed born on the field of

sports! Gatorade was launched in India in 2004 and over the years, has

become an integral part of the kitbags of many top sports people. Top

sports stars and professionals have tried and endorsed Gatorade in India

including Sachin Tendulkar, Irfan Pathan, Md. Kaif, S. Sreesanth Ramji

Srinivasan and Javagal Srinath.

Mountain Dew

It is a soft drink that exhilarated like no other because of its daring, high-

energy, active, extreme citrus taste. Challenge, a can do attitude,

adventure and exhilaration is deeply entrenched in its brand DNA and the

brand has always celebrated the bold and adventurous spirit of the youth.

This exhilaration and excitement of Mountain Dew has always been

reflected in the high-adrenaline advertising of the brand that connected it

to outdoor adventure.

In 2007, the brand was re-launched with a completely new, punchier formulation

with communication that aimed at forging a strong emotional connect with our

audience.


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Nimbooz

Nimbooz was launched in India this year on the 28th of February 2009.

Latest addition to portfolio of Pepsi Beverages. The product is available in 3

convenient formats, 350ml PET, 200ml RGB and 200ml Tetra at magic

price points of Rs.15, Rs. 10 and Rs. 10 respectively.

Slice

Slice was launched in India in 1993 as a refreshing mango drink and quickly

went on to become a leading player in the category. In 2008, Slice was

relaunched with a 'winning' product formulation which made the consumers

fall in love with its taste. With refreshed pack graphics and clutter breaking

advertising, Slice has driven strong appeal within the category.

Tropicana

Tropicana Premium Gold was re-launched as Tropicana 100% in year

2008.It continues to select the best in fruit to craft high-quality juices,

create original products, pioneer innovative processes and explore new

markets for its products. It is devoted towards a healthful lifestyle by

ensuring that the products are naturally nutritious and provide the daily

benefits that one needs.

Categories in India, Tropicana comes in 2 varieties: 100% Juices (sold as

Tropicana 100%) and Juice beverages & nectars (sold as Tropicana).

20 oranges= 1L Tropicana 100% Orange juice

8 apples= 1L Tropicana 100% Apple juice

1.25 Kg grapes= 1L Tropicana 100% Grape juice

1.3 Kg Mixed fruits= 1L Tropicana 100% Mixed fruit juice

Mirinda

Mirinda is an international soft drink brand from Spain that was launched in

India in 1991. In 2008, the brand decided to up the ante on the brand from a

being led by physical attribute-taste, to deliver a brand philosophy that


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resonates with the audience. Now, Mirinda's bold and vibrant color, great

orangey taste and sparkling bubbles encourages one to be more carefree,

spontaneous and playful.


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.

KEY RISKS TO THE BEVERAGE INDUSTRY

As water is the essential ingredient in a beverage product, as well as

vital for cooling and cleaning during the production process. So when

one considers that India’s current water supply is approximately 740

billion m3, but it has been estimated that by 2030 demand for water in

India will grow to almost 1.5 trillion m 3, the industry will clearly be

facing a major problem there. There will simply not be enough water.

Yet China, India and Indonesia are all a focus for beverage companies due to

their lower market penetration. There can be little doubt, however, that water security issues will be

One of the biggest threats to developing market potential. Let’s first take a look at

the alcoholic drinks industry.

The market growth for alcoholic drinks is particularly strong in emerging Asian

economies, driven by a range of socio-economic factors. These include favorable

demographics such as the greater proportion of young people reaching the legal

drinking age and increased per capita income and urbanization in countries such

as India and China.

The water bottles market is also booming. The market for bottled water is

developing rapidly in Asia. Health concerns of polluted municipal water sources

and increasing water shortages are expected to be key drivers of this, but wealth

and the increase in Asian middle classes will play the most significant role.

Consumer demand for purity, hygiene and convenience is on the increase. In

India the market is expected to grow by 100 percent over the next five years and

there are currently more than 2,000 bottled water producers. Whilst there has

been a backlash against bottled water in developed countries as the

environmental impact of plastic bottles becomes more apparent, in Asia it looks

set to become an increasing trend.


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FUTURE PROJECTIONS OF INDIAN BEVERAGE INDUSTRY

Beverage Industry is projected to have overall growth between 8% -8.5 % Indian non-alcoholic drinks market is expected to at a CAGR of around

15% during 2009-2012. India Alcoholic Drinks Market to Grow Over 9% CAGR during 2009-2013 The India Alcoholic Drinks Market Is Expected To Reach The 3 Billion

Liter Mark By 2012 The sectors which are projected to achieve excellent growth of 20% from

wine Fruit/vegetable juice market will grow at a CAGR of around 30 per cent in

value terms during 2009-2012 The energy drinks segment which will grow at a CAGR of around 29 per

cent during the same period. All in all, annual per capita consumption of packaged beverages is

supposed to triple from 2.6 liters in 2000 to 8.7 liters in 2012. Demand for milk and milk-based beverages are also rising.

The estimated INR 340 bn Indian liquor industry is expected to maintain itsCAGR of 15%

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