Grand project: Synopsis

Comprehensive project report

On
the role of advertising in motivating consumer brand preference
for beverages

Submitted by
Harshil thakkar-5151
Pradeep Vadher-5123

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About the Beverage Industry / sector

A beverage is a drink specifically prepared for human consumption. Beverages

almost always largely consist of water. Drinks often consumed include: Water
(both flat or carbonated),Juice based drinks, Soft drinks, Sports and Energy
drinks, Alcoholic beverages like beer or spirits ,Coffee, tea ,Dairy products like
milk. Commonly, drinks are filled into containers, like glass or plastic bottles,
steel or aluminum cans as well as cardboard supported packages, like the
"TetraPak" or others. Filling of beverages can be done cold, hot, ambient and
cold aseptic filling to mention the latest trend of beverage marketing and
technology.
The beverage is mainly categorized into two major categories based upon the
alcoholic and nonalcoholic nature of the drink. Non-Alcoholic beverages are
further of two types based upon carbon content. These beverages contain Fruit
juices, Coffee, Tea, Soda, Colas. The Alcoholic beverages are based upon the
fruit content and grain. It may be Wine, Brandy, Whisky or Beer.

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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. Beverage
Industry 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 to
grow 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 this
segment 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 drinks
among urban/suburban consumers in India. Approximately 120 billion liters of
beverages are consumed by Indians every year, but only 5% represent storebought 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 worlds
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, while
loose 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 economic
growth 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 a
stumbling block. Public concerns over safety and quality of beverages have been
aggravated by research findings (and the subsequent controversy) over alarming
levels of pesticide residues in bottled water and soft drinks. Skepticism from the
scientific community continues to limit product endorsement. Furthermore, there
is a lack of detail and clarity in food safety regulation regarding nutraceuticals
and 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 market

with 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 cows 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 to
hurt 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 worlds most ubiquitous brand. The
company and its subsidiaries are present in over 200 countries employing
over 49,000 individuals and generating revenues to the tune of US$ 21
billion. The Coca-Cola Company markets four of the worlds top-five soft
drink brands; its beverage products encompass nearly 400 brands,
including non-carbonated beverages such as waters, juices, sports drinks,
teas and coffees. The companys net income registered a CAGR of 7.2
per 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- Cola
system in India comprises 25 wholly owned Bottling operations and
another 35 franchisee-owned bottling operations. A network of 27
contract-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 new
manufacturing 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-Colas sales volumes.

Factors for success

Coca-Cola has succeeded in spite of an extremely price-sensitive
consumer with entrenched beverage consumption habits tea, nimbupaani (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 and
Limca)
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 worlds favorite drink, the worlds most valuable brand and the
most 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.

GLASS

PET

CAN

FOUNTAIN

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

sizes

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.

GLASS

PET

CAN

FOUNTAIN

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.

GLASS

PET

200ml,300ml

500ml,1.5 L, 2 330ml
L,2.25 L,500+100
ml

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CAN

FOUNTAIN
Various sizes

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.

GLASS

PET

CAN

FOUNTAIN

200ml,300ml

500ml,1.5 L, 2 330ml
L,2.25 L,500+100
ml

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 called
the king of fruits.

PET 1.2 L

Rs.45

PET
ml
RS.25

600 200ml
RGB.
Rs.8

250ml
RGB

250ml
PET

Pocket

Rs.10

Rs.15

Rs.15

200ml

KINLEY
Kinley water understands the importance and value of the life giving
fore. Kinley water comes with the assurance of safety from the CocaCola 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 perfect
solution 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,

Machaccino, Hot chocolate, Cardamom Tea
Cold Beverages: Iced Teas, Cold Coffee

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Cappuccino,

Caffe

Latte,

PEPSICO INDIA

Company Overview
PepsiCo entered India in 1989 and has grown to become one of the
countrys 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 Indias 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 Aquafina
drinking 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,
PepsiCos Frito Lay foods division has 3 state-of-the-art plants. PepsiCos
business is based on its sustainability vision of making tomorrow better
than today. PepsiCos commitment to living by this vision every day is
visible in its contribution to the country, consumers and farmers.

Brands

Foods
PepsiCos 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 Lays Potato Chips; Cheetos
extruded snacks, Uncle Chips and traditional
snacks under the Kurkure and Lehar brands. The
companys 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 Lays core products, Lays, 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 Indias 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 soft
drink 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 was
created 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. 7UPs brand communication is premised on the
products natural lemon flavor, guaranteed to provide uplifting lemon
refreshment that raises ones spirits.

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Aquafina
In India, Aquafinas journey began with the Bombay launch in
1999 and it was rolled out nationally by the year 2000. On the
strength 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, Worlds 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, highenergy, 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 Indias 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. Lets 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 its
CAGR of 15%

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