Beer Market - India - Sample


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The Indian beer industry is set to flourish with new breweries and international brands coming up in near future. Foreign players acknowledge India as a largely untapped market with strong growth potential. In terms of expected growth rates, India is among the top three beer markets in Asia.

The report provides an introduction to categories of beer and consumer preferences in India, a detailed market overview covering the market size and growth, market share by segments and region wise market share in India. An analysis of drivers explain factors contributing to he growth of beer market based on huge market potential, rising income levels and entry of international players. The key challenges discussed are high tax structure and regulatory environment.

The trends section explains about the consolidation expected with list of latest mergers and acquisitions, fast growing premium beer segment, emerging new sub-categories of beer and growing demand for barley. Competitive landscape provides the market share of major players and also provides brief profile of players including details of their brands and future plans.

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Beer Market - India - Sample

  1. 1. Beer Market - India September 2009
  2. 2. Executive Summary Indian beer market is valued at INR XX bn with volume sales of YY mn cases for FY 20-- - -- The market is expected to grow at an annual rate of a% till 20- - Market Foreign brewers are eyeing the Indian beer market which is largely untapped and has growth potential Drivers & Drivers: PLE – Huge market potential Challenges: – Regulatory Environment M – Rising income levels – High tax structure Challenges – Entry of international brands SA With current duopoly situation and entry of foreign players, beer industry in India will quickly witness consolidation Trends Premium beer segment is outpacing the mainstream beer market touching a growth rate of between b-c% Emerging new sub-categories of beer with consumers in India open for experimenting Growing demand for barley and evolving contract farming More than d% of the market is controlled by two major players Company 1 (u%) and Company 2 (v%) Competition With Company 3 acquiring Company 4, it has potential to emerge as the third major player The market is set to flourish with W new breweries and X international brands in next Y years BEER MARKET – INDIA.PPT 2
  3. 3. •Market Overview •Drivers & Challenges •Characteristics and Trends •Competition •Key Developments BEER MARKET – INDIA.PPT 3
  4. 4. Indian consumers prefer strong lagers which has higher alcoholic content Categories of beer Brewed using bottom-fermenting yeast that ferments slowly at a low temperature to create a Lager smoother, mellow beer Ale LE Uses top-fermenting yeast, is a more aromatic and fruity product P M Stout Dark and heavy, with roasted unmalted barley and, often caramel malt or sugar Mild Beer Bitter SA Developed as a sweeter and cheaper alternative to dark ales Highly hopped for a more dry and aromatic beer. It is pale in colour but strong Dark Beer Barley is kilned for a long period of time which creates richer flavours Fruit Beer Fruit, usually berries, is added either during primary fermentation or later Wheat Beer Malted wheat and barley are used for this German style beer (Weizen) Indian beer market is dominated by Category X and its various shades Indian beer market is dominated by Category X and its various shades Source: BEER MARKET – INDIA.PPT 4
  5. 5. With the global beer market being stagnant, the focus of international firms is on the untapped potential in India Market Overview Market size & growth • Indian beer market has witnessed a steady growth of b% over a decade INR bn • India is currently among top three markets in Asia in 50 a% x LE w terms of expected growth rates 40 v • There are X units manufacturing beer in India under u P 30 license from the Government • The market is set to flourish with Y new breweries 20 SAM and Z international brands in the next U years • Foreign brewers are eyeing the Indian beer market which is largely untapped and has growth potential Growth in per capita beer consumption 10 0 2008 2009 Segment share (volume - wise, 20--) 2010e 2011e Population (mn) Consumption (litres) YY mn cases q 1.200 q 1,5 p Segment 1 900 1,0 l% 600 0,5 300 m% 0 0,0 Segment 2 2000 2005 2010 Source: BEER MARKET – INDIA.PPT 5
  6. 6. Drivers & Challenges - Summary Challenges Drivers Regulatory Environment Huge market potential High tax structure Entry of international brands Rising income levels BEER MARKET – INDIA.PPT 6
  7. 7. Characteristics and Trends - Summary Rise in barley prices and Increase in merger and emergence of contract farming acquisition activity Characteristics and Trends New forms of beer being Premium beer market outpacing introduced in market mainstream beer market BEER MARKET – INDIA.PPT 7
  8. 8. Premium beer segment is outpacing the mainstream beer market touching a growth rate of between b-c% Overview Market share of premium beer (volume) • The Indian beer industry is moving towards premiumization Type 1 • Lifestyle changes and increasing western culture in u% LE India are some of the factors driving the premium segment MP • Many domestic and foreign premium brands are finding the interests of young urban working class regular brands Premium brands in Indian beer market SA • Premium beers are priced about a% higher than Growth rate of premium beer v% Type 2 0 10 20 30 40 50 Company 1 Brand 1, Brand 2 and Brand 3 % Type 1 p q Company 2 Brand 4, Brand 5 and Brand 6 Other Premium Brand 7, Brand 8, Brand 9 and Brands Brand 10 Type 2 r s Minimum Maximum Source: BEER MARKET – INDIA.PPT 8
  9. 9. Indian beer market presents a huge growth potential in terms of volume, categories and variants Competition Market share (20--) • The Indian beer market is dominated by X players controlling more than a% of the market Others • Strong beer is predicted to grow faster as it is d% LE perceived to offer value for money alternative to spirits P • With Company 1 acquiring Company 2, it has M potential to emerge as the third major player in the b% Company 3 A Indian beer market c% S Company 4 • The future of beer market in India looks positive with the entry of many international players • Beer sales will increase along with increasing number Market Share (segment wise) of brands and sub-categories in India • Existing players like Company 3 and Company 4 are j% i% planning to expand their range of products g% e% • New players like Company 5 and Company 6 are bringing their internationally renowned brands to India f% h% • The market is set to flourish with Y new breweries and Z international brands in the next U years Company 4 Strong Company 3 Mild Others Source: BEER MARKET – INDIA.PPT 9
  10. 10. Thank you for the attention The Beer Market - India report is a part of Research on India’s Food & Beverage Industry Series. For more detailed information or customized research requirements please contact: Natasha Mehta, CFA Gagan Uppal Phone: +65 8448 0449 Phone: +91 98364 71499 E-Mail: E-Mail: Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives. Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. BEER MARKET – INDIA.PPT 10