Market mapping of packaged water & juice in india

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Market mapping of packaged water & juice in india

  1. 1. By- Rajeev Sharma MBA (2011-2013) DoMS, IIT Roorkee Mapping the market for Packaged water and Packaged fruit juice in India
  2. 2. Agenda  Executive summary  Part A- Packaged Water Industry -Introduction -Market growth, major players, share, competition scenario -Product and pricing, market map (price VS. quality) -Industry competitiveness (internal and external) -opportunities and future outlook  Part B- Packaged Juice Industry -Introduction -Market growth, major players, share, competition scenario -Product and pricing, market map (availability VS. fruit content) -Industry competitiveness (internal and external) -opportunities and future outlook
  3. 3. Executive summary Packaged water and Juice are still a urban concept to the Indian consumers, the industries are in their growth stage, with the new advancement in packaging technology, introduction of new variants and entry of foreign players, this industry is booming. The industries have shown a growth trend with CAGR of 15%-25% in last few years. This report attempts to study the following- MARKET STUDY- Packaged water and packaged juice in terms of major players, market size, growth, share of players, segmentations and positioning of products available. MARKET MAPPING- To identify the relationship between different variables pertaining to the product category and to identify the market gap and opportunities for new entrants or existing players to extend their product line. SWOT Analysis and competitor analysis in porter’s 5 forces framework
  4. 4. Packaged Water industry PART 1 Perceived as new oil industry by 2025- Economic times
  5. 5. Introduction Bottled water industry, colloquially called, the mineral water industry, is a symbol of new life style emerging in India. Large segment of the population is struggling to get access to safe potable water supply, a new generation - especially in the urban areas - is getting accustomed to bottled water paying handsome prices.  Artesian well water, daab water, mineral water, mountain water, spring water, tap water are some of variants
  6. 6. Market Growth  To grow to Rs 10,000 crore by end of 2013.  Growing at a CAGR of 19%, is expected to continue its growth momentum and grow over four-folds to Rs 36,000 crore by 2020. CAGR- compounded annual growth rate
  7. 7. 0 20 40 60 West leads- Segmentation by Region Segment ation by Region 4000cr 2400cr . 1600cr . Market dominated by national brands National brands Local recognized brands unrecognized local brands There are more than 2500 brands in this category and local unrecognized accounts for 3/4th of the total brands% Contr. Urban 75% Rural 25% Largely urban centric
  8. 8. Market Share by recognized brands Market leader-Parle-Bisleri Followers - Coca-cola’s Kinley & Pepsi’s aquafina. Challengers-  Parle Agro’s- Bailley  Kingfisher  Oxyrich  Mc dowell’s no.1 and others. Niche's- Himalaya, Rail neer, Aava 36% 25% 15% 6% 18% Parle Bisleri holds the major share Bisleri Kinley Aquafina Bailley Rest
  9. 9. Major Players 9 Other Players  Mohan Meakin  Mysore Breweries  United Breweries  NDOB  Mt Everest  Golden  Hello  Dadi Group  S M Foods  Group Denone Parle Bisleri Kothari Beverages
  10. 10. More than 200 recognized brands…. 10 Bailley Stream Golden Eagle Penguin Yes Oasis Kristal Trupthi Peppy Minerelli Bisleri Kingfisher Pure Life Kinley Perrier Aquafina Evian Golden Valley Stream Himalayan Pondicherry Jaldhara Ferra Relle
  11. 11. Packaging and Pricing Packaging Market Pricing (in Rupees) 20 liters 60-75 5 liters 30-35 (Bisleri) 2 liters 20 1 liter 10-15 500 ml 5-8 330ml 5 250 ml (cup) 3
  12. 12. Market Map for packaged water High quality Basic quality Lowprice HighPrice Local brands Bisleri’s (>5ltr jars) Functional & luxury water Bottle in size<1ltr
  13. 13. SWOT analysis STRENGTHS More health, hygienic consciousness Strong supply chain & logistics. Low entry barriers. Rise of tier 2, tier3 & rural areas. Changing demographics and consumer behavior Huge untapped market WEAKNESS Low capital intensive industry attracts new entrants. Low quality standards of unrecognized players- leading to low confidence in industry OPPORTUNITIES Increasing income of middle class families, tourism Rise in demand of big water jars in office and office spaces. Increasing Organization of retail stores. Emergence of value added waters Differentiated packaging and variants. THREATS Intense competition from local manufacturers.  Government regulations and pricing policies Environment concerns Increasing sales of water purifiers.
  14. 14. What is fueling this Industry growth? Increased On-the-go behaviourHigher disposable income Importance of Hygiene Affordable Price PointsIncreased Availability 7 Lakh  9 Lakh outlets
  15. 15. Industry competitiveness through PORTER’s 5 Forces model THREAT OF NEW ENTRANT BUYER’S POWER SUPPLIER’S POWER THREAT OF SUBSITUTES MODERAT E LOW HIGH HIGH INDUSTRY HIGH RIVALRY
  16. 16. Opportunities and future outlook  Vitamin/ Mineral fortified  Added fibre/ performance enhancing ingredients  Beauty ingredients  Strengthen immune system/ treat specific diseases  For diabetics Functional WatersFlavored Water  Fruit flavoured  Natural Flavours  Sugar Free Differentiated Packaging  Premium Packaging  Appearance changing  More eco-friendly
  17. 17. Packaged Juice industry Part 2 Gaining acceptance in India- The Hindu
  18. 18. Introduction  The fruit based beverages category is one of the fastest growing category, and is growing at a CAGR of 30% on the last decade.  Industry valued at around INR1500 cr., and expected to increase by CAGR of 15% over next 3 years.  Dabur, pepsico, coco-cola are largest market share holders
  19. 19. Divided into 3 subcategories- Categor y Fruit content Market share Exampl es Fruit drinks 30% 60% Frooti, maaza Fruit juice 100% 30% Real active Nectar drinks 25-90% 10% Real cranberr y
  20. 20. Market Growth Time period Market growth 1990-91-1996-97 40.3% 1996-97 – 2001- 02 16.1% 2001-02 – 2006- 07 10.3% 2004-05 – 2009- 10 9.0% 2009-10 – 2014- 15 8.0% 5.3 bn 2004-05 7.4bn 2009-10 10.90 2014- 15 Demand in billion Rs. for fruit juices and concentrates 8% 7% 20% 65% Share by segmentation North East West Source- ministry of food processing industry
  21. 21. Market Share by branded products  Dabur leads the market with it Real juice brands and enjoy a share of 50%  Pepsico’s Tropicana brand is the challenger in packaged fruit juice category with 37% share.  Coco cola’s minute maid, parle , delmonte, godrej are some of the other players in the market Note-this juice category is different from RTD (ready to drink)category which has brands like frooty, slice, maaza 50% 37% 5% 8% Sales Dabur Pepsico coca cola others
  22. 22. Availability vs. fruit content More Availability Less availability HighFruit content Lowfruit content
  23. 23. The 3 Ps  Product- there are around 14 variants available in market with different fruit flavors  Packaging- Dabur recently launched 125ml real junior pack. most preferred pack are 200ml , 1 ltr.  Price- Rs. 10-15 for 200ml pck, and Rs 80-90 for 1 ltr
  24. 24. SWOT analysis STRENGTHS More health, hygienic consciousness Low entry barriers. Rise of tier 2, tier3 & rural areas. Changing demographics and consumer behavior Huge untapped market WEAKNESS Low capital intensive industry attracts new entrants. Low quality standards of unrecognized players- leading to low confidence in industry Demand is seasonal dependent OPPORTUNITIES Increasing Organization of retail stores. Differentiated packaging and variants. Healthy proposition Unique offerings Wider option- from single fruit to mixed fruit. Product extension- sachets of fruit powder. THREATS Intense competition from local manufacturers.  Government regulations and pricing policies Uninterrupted logistics and supply of raw material. Local juice vendors.
  25. 25. Industry competitiveness through PORTER’s5 Forces model THREAT OF NEW ENTRANT BUYER’S POWER SUPPLIER’S POWER THREAT OF SUBSITUTES MODERAT E HIGH Moderate HIGH INDUSTRY HIGH RIVALRY
  26. 26. Unbounded opportunities  Shift towards 100% juice from concentrated juices.  Healthy proposition- eg-fiber enriched, no sugar.  Unique offerings- eg- dryfruit apple juice.  Wider option- from single fruit to mixed fruit.  Product extension- sachets of fruit powder.
  27. 27. THANK YOU

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