Current Status and Future Trends of Beverage Industry

7/29/2019 Current Status and Future Trends of Beverage Industry

1/31

Current Status and Future trends

of Beverage Industry

Group : 10


2/31


3/31

Beverage Packaging Trends

Consumers are drinking on the go and are

looking for quick and convenient beverages in

single portion packages that can be consumed

quickly and stored discreetly.

Consumers are also increasingly aware of

sustainability initiatives, environmentally

friendly packaging and carbon footprints.


4/31

Other trends that will drive packaging innovations in thelong term are the following initiatives to improve packagestrength, ease of use and material efficiency, respectively:

Packaging designs with improved break resistance.

Packaging designs that substantially reduce spilling.

Packaging materials and designs that decreases the weightof bottles.

In order to effectively make these initiatives a reality,beverage manufacturers are seeking innovations fromsuppliers and packaging vendors.

A plant manager at a bottled water manufacturer stated

that beverage packaging companies should share theburden of driving new solutions to market. Thesecompanies should also work aggressively to effectivelyproduce packaging designs that beverage manufacturersrequest.


5/31

Secondary Packaging Trends

Within secondary packaging, respondents saw

a trend of reducing the amount of secondary

packaging with more effective solutions that

protect beverages and reduce the cost, sizeand weight of the packaging.


6/31

Trends in Specific

Beverage Categories


7/31

Trends in Beer, Wine, and Spirits

Many companies in the alcoholic drinkcategory are transitioning their brands tomore of a premium positioning through new

closures and container materials. Many beer companies are using aluminum

cans as a way to provide more insulationbenefits to consumers while also enhancingthe brand image with a new, innovative andsophisticated look.


8/31

Trends in Carbonated Soft Drinks

While many companies talk about shifting toward

green packaging, respondents in carbonated soft

drinks stated that they expect their industry to be

the fastest to move toward green packaging. Multiple respondents stated that they expect

carbonated soft drinks to move away from glass

and aluminum to bio degradable/green plasticpackaging as soon as it becomes widely available.


9/31

Trends in Non-Carbonated Soft Drinks

To keep costs low, respondents in the non-

carbonated soft drinks category see a less is

more philosophy becoming a packaging

trend.


10/31

Current Status Of Beverage Industry

Focus on Bottled water industry

Indians currently spending approximately$330m a year on bottled water.

The packaged water market constitutes 15 per

cent of the overall packaged beverageindustry, which has annual sales of at least$2.6bn.

The per capita consumption of mineral waterin India is a mere 0.5-liter compared to 111liter in Europe and 45-liter in USA.


11/31

Bottled Water Industry in India

The Indian market is estimated at about Rs 1,000Crore and is growing at whopping rate of 40 percent. By 2010, it will reach Rs 4,000 -5,000 Crore

with 33 per cent market for natural mineralwater.

According to a national-level study, there aremore than 200 bottled water brands in India and

among them nearly 80 per cent are local brands. India ranks in the top 10 largest bottled water

consumers in the world,


12/31

its per capita per annum consumption of

bottled water is estimated to be five litres

which is comparatively lower than the globalaverage of 24 litres.


13/31

Bottled water top players in India

The top players in bottled water industry in Indiaare the major international giants :

Coca cola,

Pepsi,

NestleNational Players

Mount Everest,

Manikchand,

Kingfisher,

Mohan Meakins,

SKN Breweries ,

Indian Railways


14/31

Parle Bisleri continues to hold 40 per cent of

the market share.

Kinley and Aquafina are fast catching up, with

Kinley holding 20-25 per cent of the market

and Aquafina approximately 10 per cent.

The rest, including the smaller players, have

20-25 per cent of the market share.


15/31

Bottled water companies earn high

profits

People are prepared to pay

Rs. 12 for a liter of water-in

India especially when the cost

of material input 0.25 paisa per

liter excluding labors cost.


16/31

PepsiCo sales growing twice as fast as Coca-ColaAugust 10, 2011: In the Rs 11,000-crore soft drinks

market, where volume growth is significantly lower

than two years back in any case, PepsiCo reported 17%volume growth during April-June while Coca-Cola grew8%. This is the biggest gap in growth between the twocola rivals in the past 3-4 years when they were

growing neck-to-neck. Bisleri looking to enter Middle East countries

NEW DELHI, June 30, 2011: Bottled water majorBisleri International said it is looking at entering Middle

East countries as part of its strategy to expand itsoverseas presence.As part of the plan, the companysaid it will consider setting up more manufacturingfacilities outside India.


17/31

Railways hikes capacity of Rail Neer plant atKhagauJune 8, 2011: The Rail Neer (mineral water)

plant at Khagaul has proved to be a good revenueearner for the railways. The railways hasincreased its production capacity to one lakh

bottles daily to cope with the growingdemand in other zones.

Railways to set up own bottling plantThe Indian Railway Catering and Tourism

Corporation (IRCTC) are planning to set up theirown bottled water plant in Ambarnath a news onFebruary 20, 2011.


18/31

Soft-drink major hikes prices on rise in VATMumbai, May 23, 2011: Soft-drink major Coca-Cola has hiked

prices by up to five per cent in at least two major markets such asMaharashtra and Delhi. This is the second price increase being done

by the company in the lasttwo months. In April, the firm that sells Thums Up, Sprite, Fanta andMaaza, had hiked prices of its aerated beverages by up to nine percent due to surging packaging and transportation costs.

After the price hike, a 1.25-litre bottle of Thums Up is nowavailable for Rs 39, up from Rs 37. Prices of 200 ml bottles of Sprite,

Maaza and Limca are up by Rs 1 from Rs 9. The company has alsoincreased prices of its two-litre bottles of Sprite and Thums Up toRs 63 from Rs 60.

The Indian subsidiary of the US cola giant blames increase in thevalue added tax (VAT) levied by state governments of Maharashtraand Delhi for the price hikes. The state value-added tax (VAT) has

increased to 20 percent from 12.5 per cent earlier, said senior Coca-Cola India officials.


19/31

Formation of Indian Beverage Association

(IBA)

In July 2010 rivals Coca-Cola and PepsiCohave come together along with other

beverages makers and bottlers to form the

Indian Beverage Association (IBA), which will

be the industrys single point of interaction

with the government and help companies

comply with food safety guidelines and other

regulations.


20/31

Other Information

The Rail Neer opened water manufacturing

unit in Palur.

This is the third in the country and first in

south India.

It has capacity to manufacture water bottles

that can hold up to 180000Ltr per day.

PepsiCo signs up Sharman Joshi as 7UP brand

ambassador


21/31

On March 25, 2011 India has sent 10,000 litres

of bottled water to Japan, reeling under the

devastation caused by disaster of Earthquake,tsunami and worst nuclear accidents of Japan.

The World Health Organisation (WHO) has

issued revised drinking water guidelines onJuly 26, 2011, urging governments to

strengthen water quality management and

asking water suppliers to improve their faulty

service to consumers, in order to prevent

often fatal water-borne diseases.


22/31

Key Figures on Indian Beverage Industry

Indian Beverage Market CAGR[2007-2010]:21%

India ranked 3rd in largest beverage

consumption after the USA and China Total Indian Beverage Consumption every

year:120 billion liters

Fruit Beverages Market size: Rs 1100 crores(approx. Euro 180 million)

Fruit Beverage market growth rate: 30%


23/31

Majority of Indian consumers:75% consume Non-alcoholic beverages and 25%

Alcoholic Beverages

Carbonated Drinks Market size: $1.5 Billion Juice or juice-based Drinks Market size: $.25

billion

Health beverage industry is valued at $230million

Indian Beer Market Growth Rate: 7 - 8 %


24/31

Indian Beverage Industry is 10% of Global beverage

consumption today. Milk-based beverages consumption has increased

by an annual average of 2.7 per cent in the last four

years Total packaged coffee market size: 19,600 tonnes or

$87 million.

The Indian soft drink market is worth Rs. 21,600million a year with a growth of around 7%.


25/31

The total soft drink (carbonated beveragesand juices) market is estimated at

284 million crates a year or $1 billion.

Peak season soft drink consumption : 25million

Off-season soft drink consumption: 15 million


26/31

The market is predominantly urban with 25 per

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

drinks market.

Indian Mineral water market size : 50 millionindustry.

Th t i f t hi h d i i


27/31

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


28/31

OPPORTUNITIES

Presence of a favorable market

Market globalization

Foreign direct investment promotingknowledge and developing export channels

Transfer of production to the countries with

smaller labor costs

Well established distribution network


29/31

THREATS

Unfavorable market trends in energy resources

Increasing competition among exporters and

decreasing dependency on one market

Intense competition between the organized and

unorganized segments and low operational cost.

Water scarcity in India

Implementation of Goods and Service tax by2011


30/31

Bibliography

http://www.chem.info/Articles/2010/03/Plant

-Operations-Beverage-Industry-Trends/

http://gits4u.com/water/water16.htm
http://www.chem.info/Articles/2010/03/Plant-Operations-Beverage-Industry-Trends/http://www.chem.info/Articles/2010/03/Plant-Operations-Beverage-Industry-Trends/http://gits4u.com/water/water16.htmhttp://gits4u.com/water/water16.htmhttp://www.chem.info/Articles/2010/03/Plant-Operations-Beverage-Industry-Trends/http://www.chem.info/Articles/2010/03/Plant-Operations-Beverage-Industry-Trends/http://www.chem.info/Articles/2010/03/Plant-Operations-Beverage-Industry-Trends/http://www.chem.info/Articles/2010/03/Plant-Operations-Beverage-Industry-Trends/http://www.chem.info/Articles/2010/03/Plant-Operations-Beverage-Industry-Trends/http://www.chem.info/Articles/2010/03/Plant-Operations-Beverage-Industry-Trends/http://www.chem.info/Articles/2010/03/Plant-Operations-Beverage-Industry-Trends/http://www.chem.info/Articles/2010/03/Plant-Operations-Beverage-Industry-Trends/http://www.chem.info/Articles/2010/03/Plant-Operations-Beverage-Industry-Trends/


31/31

Current Status and Future Trends of Beverage Industry

Documents

Transcript of Current Status and Future Trends of Beverage Industry