DID YOU KNOW?
The Indian beverage industry- A large untapped market
A majority of urban and suburban Indians consume non-alcoholic store-bought beverages 'less than once a day', suggesting a large untapped market potential. 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 - as highlighted in Boston Analytics' survey of 8,300 people across 15 cities.
Approximately 120 billion litres of beverages are consumed by Indians every year, but only five per cent represent store-bought packaged beverages. The majority of Indian consumers (75 per cent) 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 markets (estimated to be worth US$ 1.5 Billion and US$ .25 billion, respectively). While consumption frequency decreases with age, it is found to increase with income levels, except in the top-most economic strata of society.
Product taste is the primary driver of brand choice for carbonated, juice-based and sports/energy drinks. While consumptions patterns are somewhat similar across different tiered cities, reasons for not consuming non-alcoholic store-bought beverages vary considerably. This study has implications for both the marketing and product development of carbonated, juice-based and sports/energy drinks. Significant opportunities exist for manufacturers to expand these markets through both greater consumption and greater penetration.
Energy and sports drink
The market for energy and sports drinks in India is still in its infancy with only 26 per cent of those who have ever consumed a store-bought non-alcoholic beverage having tried a sports or energy drink and only nine per cent drink energy and/or sports drinks regularly at the same time of day. While there are clear brand leaders, there are also numerous opportunities for competitors to strengthen their positions, e.g., by addressing the three greatest obstacles to greater consumption: lack of availability, high price and unappealing taste.
Interestingly, despite the category name, the ability ‘to boost one's energy’ is not among the top 10 criteria used to select between brands in this category as noted in study. The Rs 500 crore (US$ 100 million) Indian energy and sports drink market is expected to double within the next two years. Mumbai, Delhi and Hyderabad are the largest centres of consumption for this segment, while Delhi has one of the lowest consumption rates.
Source: Express Hospitality
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"Technique of selling alone is not the key to open a market to Champagne. The product and passion are essential too. We are indeed happy that All things Nice has taken the responsibility to help people know their drink. With Nikhil's impeccable knowledge on the subject and drive, All Things Nice will definetly guide the category. We at Champagne Ayala, look forward to encouraging the cause. We will play a key role in the activities of ATN and make sure that the discerning Indian champagne drinker forms the best prefrences."
- Ray Martins, Area Representative, South Asia, Champagne Ayala