Market Research Report: Bottled Water Market in India 2010


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The bottled water industry in India has been growing steadily and is dominated by certain brands in the market. The packaged water segment is extremely competitive with players ramping up their packaging styles to attract a large base of consumers in order to account for a larger share in the market. With rising consumer concerns over health and increasing shelf spaces in the institutional channels, the market is set to boom and exhibit huge potential for players to increase their sales.

The report begins with the market overview section which provides a detailed description of the current and forecasted off-trade/retail sales. The difference between packaged and mineral water as well as different forms of distribution is also covered in this section. The section also highlights the regional consumption of bottled water in terms of the bulk water consumption and also the off-trade sales in various regions of India. It also includes the import and export structure of bottled water and the brands that are traded.

This is followed by an analysis of the drivers of the market that include rise in income and consumption, sound economics and high profitability, water shortage and low bottled water consumption, increasing consumer awareness on health issues, increase in water borne diseases, archaic government laws supporting groundwater exploitation and growth in foreign visitors and expatriate population. The key challenges identified include inefficient transport infrastructure, low-entry barriers and threat from low-quality products, possible threat from public campaigns and litigation, brand and category differentiation and increasing use of water purifiers. The key trends in the market have also been identified which include brand building, institutional sales, wide packaging formats, new entrants from other sectors, launch of flavoured water, and natural mineral water going abroad.

The competition section provides the competitive structure of the industry and shows the market share of various brands that operate in the space. The brief profiles of the various companies that operate in the segments of the market have been also provided. The key development section gives a view of the recent happenings in the industry.

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Market Research Report: Bottled Water Market in India 2010

  1. 1. Bottled Water – India June 2010
  2. 2. Executive Summary Rapidly growing market with packaged drinking water comprising 90% and natural mineral water 10% of the total market Market Pouches lead the sales of Packaged Drinking Water while imports of Natural Mineral water making a surge over exports LE Drivers: Rise in income and consumption, Sound economics and high profitability, Water shortage and low bottled water consumption, Increasing consumer awareness on health issues, Increase in water borne diseases, Drivers & Challenges population MP Archaic government laws supporting groundwater exploitation, Growth in foreign visitors and expatriate Challenges: Inefficient transport infrastructure, Low-entry barriers and threat of low-quality products, Possible SA threat from public campaigns and litigation, Brand & category differentiation, Increasing use of water purifiers Recent Brand Building activity Continued focus on institutional sales Trends Wide packaging formats New entrants from other industries, especially retail and hospitality Launch of Flavoured water Possible export of Himalayan natural mineral water Packaged Drinking Water segment – Fiercely competitive and includes a sizeable unorganized sector Competition – Bisleri, Coca Cola, PepsiCo and Manikchand are market leaders Natural Mineral Water Segment – Increasing competition with equal market share between Tata’s Himalayan brand and others BOTTLED WATER IN INDIA 2010.PPT 2
  3. 3. •Market Overview •Drivers & Challenges •Trends •Competition •Key Developments BOTTLED WATER IN INDIA 2010.PPT 3
  4. 4. Indian bottled water industry is rapidly growing with a boost in sales and large number of consumers Overview Market Size – Retail/Off Trade Market •Bottled water market is one of the fastest mn ltrs growing and competitive industries in India 6,000 c% Y •Retail/Off trade market accounts for a% of the LE X bottled water market while institutional sales W 4,000 V P make up for the rest U •Market comprises of two segments: M 2,000 Packaged drinking water: Water from any source, which is treated for consumption underground source S •Packaged water shows greater penetration A Natural Mineral water: Drawn from a natural 0 2008 2009 2010 Pack sales – Off Trade/Retail (2008) 2011 2012 with greater sale values and market for s3% natural mineral water is still nascent Segment 1 Packaged drinking water accounts for b% of the retail sales market Segment 2 s2% s4% Segment 3 •Pouches have a greater share in the market in terms of packs sold in different parts of India Segment 4 s5% Segment 5 •Increasing mobility of consumers has led to s1% the varied differentiation among pack sizes Source: BOTTLED WATER IN INDIA 2010.PPT 4
  5. 5. Pouches lead the sales of packaged water with the southern region originating as the highest market for bottled water Regional Share – Bottled water Regional sales – Off trade/Retail Market •Consumption varies across regions and is Region 4 primarily linked to the level of prosperity s4% LE •Production is concentrated in Region 1 where Region 3 s3% ~a% of all bottling plants are located •In pack sales, Region 1 occupies more than MP half the retail sales of bottled water in India s1% Region 1 with a large number of bottling plants SA State 1 and State 2 accounts for a% and b% respectively of the total retail market Region 2 s2% Bulk water consumption – Region wise State 3 in western region accounts for c% of the Region 3 Region 4 total retail sales b3% •In bulk water consumption, State 1 accounts Region 2 b4% b2% for d% of the market, followed by State 4 (e%) b1% Region 1 Source: BOTTLED WATER IN INDIA 2010.PPT 5
  6. 6. Drivers & Challenges – Summary Drivers Challenges Rise in income and consumption Inefficient transport infrastructure Sound economics and high Low-entry barriers and threat from profitability low-quality products Water shortage and low bottled water Possible threat from public campaigns consumption and litigation Increasing consumer awareness on Brand and category differentiation health issues Increase in water borne diseases Increasing use of water purifiers Archaic government laws supporting groundwater exploitation Growth in foreign visitors and expatriate population BOTTLED WATER IN INDIA 2010.PPT 6
  7. 7. Key Trends – Summary Brand building begins only recently Institutions continue Natural mineral to be an important water going abroad channel Trends Launch of flavoured Wide packaging water formats New entrants from other sectors BOTTLED WATER IN INDIA 2010.PPT 7
  8. 8. Company 1, Company 2 lead packaged drinking water while Company 3 dominates natural mineral water segment Packaged Drinking Water Market share – Organized sector •Fiercely competitive due to attractive Others economics and huge size 18% Company 5 LE •Organized sector comprises Company 1, 9% Company 3, Company 4, Company 5 and a% Company 1 numerous regional brands MP •Includes a large number of regional or Company 4 14% 20% localized brands as well Natural Mineral Water SA Market share Company 2 •Few participants - only X licensees •Dominated by Company 3 in India •Other domestic brands include Company A, Company 3 f% g% Others Company B and Company C •The niche premium import segment includes Company D, Company E and Company F A large unorganized sector also exists providing fierce competition to larger players A large unorganized sector also exists providing fierce competition to larger players Source: BOTTLED WATER IN INDIA 2010.PPT 8
  9. 9. Thank you for the attention The Bottled Water report is a part of Research on India’s Food & Beverage Industry Series. For more detailed information or customized research requirements please contact: Gagan Uppal Gaurav Kumar Phone: +91 96191 00122 Phone: +91 98303 09715 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. BOTTLED WATER IN INDIA 2010.PPT 9