Alcoholic and Non-Alcoholic Beverages, Drinks, Hard and Soft Drinks, Fruit and Vegetable Juice, Agro food Sector, Distilled Beverage, Carbonated and Non Carbonated Drinks, Beer and Breweries, Caffeinated Beverages, Energy Drinks Projects
Drinking practices vary substantially among different countries and different masses. But both alcoholic and non alcoholic beverages are very popular among all ages of people. The alcoholic drinks market is broadly classified into five classes, starting from beers, wines, hard liquors, liqueurs and others. The Indian alcoholic market has been growing rapidly for the last ten years, due to the positive impact of demographic trends and expected changes like rising income levels, changing age profile, changing lifestyles and reduction in beverages prices. Similarly non-alcoholic drinks market is broadly classified into carbonated drinks, non-carbonated drinks and hot beverages. These include juices, energy drinks, carbonated drinks, tea, coffee and bottled water.
Indian life style has a predilection for fresh fruits and vegetables or those processed at home. There is a sea change. People, are now increasingly going in for fresh fruit vending from kiosk fountains which produce instant juices from fresh fruits in the presence of the consumer. Besides this, growing health consciousness among India’s young population has brought about a revolution in the Indian non-alcoholic drinks market. Among the fruit juices beverages are Pepsi’s Tropicana, nectars (Dabur’s Real) and fruit drinks (Frooti and Slice).All these are real, reconstituted from fruit pulps or concentrates. The leading fruit juice brands include Real, Onjus, Tropicana, Frooti, and Jumpin.
India presents a huge growth potential for alcoholic and non alcoholic beverages sales. Increasing GDP, favourable growth in the demographics with a growing urban middle class, growth of modern retail formats, hopeful rationalization of the taxation rules and ban on local country liquor and rising health consciousness, age preferences will act in favour of the growth of both alcoholic (specially beer) and non alcoholic (specially fruit juices, energy drinks etc) beverages in India in the near future. All new entrepreneurs venturing into this field will find a future which is looking very promising and bright.
Liquor industry has always remained under strict governmental control in terms of capacity creation, distribution, taxation. While overall public perception spells restraint, it is the symbol of high life even in puritan India. The industry poses a dilemma to the state. It cannot resist the temptation of large revenues, while steering clear of the embarrassment of giving encouragement to drinking. A positive feature of allowing the industry to grow and operate is the prevention of illicit production and drinking.
Of the over Rs. 280 bn liquor industry (excluding beer) selling around 450 mn cases annually, a large peg of which (67%) is whisky, followed by brandy and gin at 13%, rum at 17% while the white spirits account for 3% of the market share. Of this, the Indian-made foreign liquor (IMFL) accounts for Rs. 78 bn (86 mn cases) with whisky alone constituting 95%. Besides, there is a large 223 mn case market of low-priced country liquor. Indian spirit market also consumes branded country liquor worth Rs. 125 bn and unbranded country liquor worth Rs. 50 bn.
The growing popularity of wine in India is generating lots of interest among big and small wine producers. This is also reinforced by the fact that the cost for opening and setting up of wine plants with capacity of around 100,000 lts comes only to somewhere between Rs. 10-15 mn mark. As a result many entrepreneurs, Indian and foreign, are entering in this sector.
Global non-alcoholic beverages market, which had a valuation of US$1,435.25 bn in 2013, will expand at a 4.3% CAGR over the period between 2014 and 2020 and reach US$1,937.73 bn by 2020. In terms of volume, the market is expected to expand at a similar 4.9% CAGR, propelling the consumption of non-alcoholic beverages from 912.77 bn liters in 2013 to 1,289.03 bn liters by 2020. The global alcoholic beverages market is anticipated to display moderate growth rate over the 2015-2021 period. The consistent sales of all the product segments (spirits, wine, and beer) have led to the positive growth of the global market over the last few years. Alcoholic drinks market during the forecast period and will occupy around 48% of the total market share by 2020.
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