Beer in India
Euromonitor International's Beer in India market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
Buy online to access strategic market analysis and an interactive statistical database of volume and value market sizes including on-trade and off-trade, company and brand shares, distribution and pricing data.
Tables: 89 | Publication date: Jan 2010
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Executive summary
2009 was highly dynamic in terms of new brand launches, with United Breweries Ltd and Carlsberg India Pvt Ltd expanding their domestic premium lager portfolios by launching Kingfisher Ultra and Tuborg, respectively. Brands such as Tennent’s, Kingfisher Blue and Indus Pride, which were launched in late 2008, became available in outlets nationwide in early 2009. Moreover, brands such as Tiger, Carlsberg and Budweiser saw lower prices and greater availability in India, as their new domestically-produced stock replaced imported SKUs in 2009. Niche products, such as dark beer, also saw greater availability, with the launch of ales from the Little Devil’s and Coopers portfolios in 2009.
2009 total volume growth was two percentage points lower than the total volume CAGR recorded over the review period. Although 2009 volume growth was higher than that in 2008, growth rates did not bounce back to the highs seen in 2006 and 2007. While the long summer in 2009 buoyed the beer market in North and West India, sales growth in the key southern states, such as Karnataka, Andhra Pradesh and Tamil Nadu, was adversely affected due to taxation-related price rises in Karnataka and the withdrawal of United Breweries Ltd’s and SABMiller India Ltd’s brands from Andhra Pradesh in first half of 2009.
Domestic premium lager witnessed the fastest volume growth in 2009. Both domestic and multinational players were very aggressive with brand launches and promotional activities in 2009, and the category benefited from consumers trading down from imported premium lagers to domestic premium lagers. Moreover, brands such as Tiger, Carlsberg and Budweiser, which were available as imports in several cities in 2008, saw a sharp rise in availability and accessibility as domestically produced SKUs of these brands were rolled out nationwide in 2009. These international brands created additional buzz for this category in that year.
The average unit price of beer rose only marginally in 2009, by about 1%. Overall prices remained stable in most of the states in India. Nonetheless, fluctuations in taxation policy did drive up prices in some states, including Karnataka and Delhi-NCR.
Imported premium lager grew by 12% in 2009, which was significantly lower growth than the review period CAGR of 18%. Imported premium lager growth was adversely affected by the dual effect of a rise in import taxes in key markets, such as Maharashtra and Karnataka, and the economic uncertainty in the first half of 2009, which resulted in depressed on-trade sales. With major international brands, such as Carlsberg and Budweiser, being priced on a par with domestic brands, such as Kingfisher, consumers had access to several aspirational international brands within domestic premium lager, thus growth in imported premium lager sales slowed down.
Domestic standard lager showed the slowest total volume growth in 2009, of 10%, as consumers shifted from regional standard brands, such as Thunderbolt, towards more high profile and aspirational brands, such as Kingfisher.
81% of volume sales of beer are derived from off-trade sales, as beer consumption is most common during social and family gatherings at home. Moreover, beer is priced on a par with spirits in on-trade outlets, and many consumers prefer consuming spirits with mixers, which provides a quicker “high”. Imported premium lager is dominated by on-trade sales, as these premium brands are not stocked by the majority of off-trade outlets. Draught beer is also restricted to niche premium outlets, due to the low awareness of this format and higher costs involved in setting up draught facilities in outlets. With Haryana legalising the setting up of microbreweries in 2008, at least two such outlets were operational by mid-2009. The expansion of the microbrewery format in the affluent towns is expected to raise the profile of draught beer in India.
Glass bottles of 330ml and 650ml are the dominant type of beer packaging available in India. However, canned beer continued to see strong volume growth in 2009. Canned beer volume sales grew by more than 20% in India in 2009. 500ml beer cans are more popular than 330ml cans. In February 2009, Rexam HTW, a joint venture between Rexam Plc and Hindustan Tin Works Ltd, signed an agreement with United Breweries Ltd to supply 500ml cans. In May 2009, Can-Pack India Pvt Ltd started its operations in India, with the aim of supplying 65% of its one billion can annual output to the beer industry, and gained contracts with most of the major beer players.
Production, Imports and Exports
The domestic production of beer is on the rise, with official statistics reporting an 11% increase in domestic beer production in 2008, which is in line with the 12% growth in volume sales of domestic lager in 2008. In October 2009, Carlsberg India Pvt Ltd started work on its new greenfield brewery in Medak (Andhra Pradesh), which is expected to have a production capacity of 4 million litres per month and start operations in late 2010.
Exports of beer out of India declined marginally in 2007, while imports rose by 39% in volume terms. This reflected the robust growth in sales of imported premium lager in India. Major imported brands in the latter part of the review period included Heineken and Corona in imported premium lager, and Hoegaarden in dark beer. Domestically produced beer is mainly produced for local consumption and only a negligible amount is exported to neighbouring markets. In 2008 and 2009, imports are expected to show strong growth, as players have increased their push behind imported brands, such as Stella Artois and Peroni Nastro Azzuro.
Imported beer accounted for less than 1% of beer volume sales in 2009. Imported beer is only available in niche premium on-trade outlets, where it is sold at significantly higher prices than domestically-produced beer, due to high import duties. In addition to more widespread distribution and lower price points, domestic brands also have the benefit of higher brand recall, due to high-profile marketing activities.
Apparent consumption levels grew by 24% in 2007 over the previous year, to reach 390 million litres. This is less than one third of the reported market size of 1,193 million litres in the year. This discrepancy between the calculated apparent consumption and total market size is chiefly due to problems associated with data collection by government bodies. Companies often underreport actual production figures. In addition, many units will be sold via both official and unofficial channels, such as with the illegal imports of beer into prohibition states.
Table of contents
BEER IN INDIA : MARKET INSIGHT
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Lager price band methodology
Summary 1 Lager by Price Band 2009
SECTOR DATA
Table 1 Sales of Beer by Subsector: Total Volume 2004-2009
Table 2 Sales of Beer by Subsector: Total Value 2004-2009
Table 3 Sales of Beer by Subsector: % Total Volume Growth 2004-2009
Table 4 Sales of Beer by Subsector: % Total Value Growth 2004-2009
Table 5 Sales of Beer by On-trade vs Off-trade Split: Volume 2004-2009
Table 6 Sales of Beer by On-trade vs Off-trade Split: Value 2004-2009
Table 7 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2004-2009
Table 8 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2004-2009
Table 9 Beer: Production, Imports and Exports: Total Volume 2003-2008
Table 10 Beer Exports by Country of Destination: Total Volume 2003-2008
Table 11 Beer Exports by Country of Destination: Total Value 2003-2008
Table 12 Beer Imports by Country of Origin: Total Volume 2003-2008
Table 13 Beer Imports by Country of Origin: Total Value 2003-2008
Table 14 Company Shares of Beer by National Brand Owner 2005-2009
Table 15 Company Shares of Beer by Global Brand Owner 2005-2009
Table 16 Brand Shares of Beer 2006-2009
Table 17 Forecast Sales of Beer by Subsector: Total Volume 2009-2014
Table 18 Forecast Sales of Beer by Subsector: Total Value 2009-2014
Table 19 Forecast Sales of Beer by Subsector: % Total Volume Growth 2009-2014
Table 20 Forecast Sales of Beer by Subsector: % Total Value Growth 2009-2014
LOCAL COMPANY PROFILES - INDIA
AMRUT DISTILLERIES LTD - ALCOHOLIC DRINKS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Amrut Distilleries Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 3 Amrut Distilleries Ltd: Competitive Position 2009
BACARDI-MARTINI INDIA LTD - ALCOHOLIC DRINKS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Bacardi-Martini India Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 5 Bacardi-Martini India Ltd: Competitive Position 2009
CARLSBERG INDIA PVT LTD - ALCOHOLIC DRINKS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Carlsberg India Pvt Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 Carlsberg India Pvt Ltd: Competitive Position 2009
INDAGE VINTNERS LTD - ALCOHOLIC DRINKS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Indage Vintners Ltd: Key Facts
Summary 9 Indage Vintners Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 10 Indage Vintners Ltd: Production Statistics 2008
COMPETITIVE POSITIONING
Summary 11 Indage Vintners Ltd: Competitive Position 2009
MOHAN MEAKIN LTD - ALCOHOLIC DRINKS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Mohan Meakin Ltd: Key Facts
Summary 13 Mohan Meakin Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 14 Mohan Meakin Ltd: Competitive Position 2009
PERNOD RICARD INDIA PVT LTD - ALCOHOLIC DRINKS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 15 Pernod Ricard India Pvt Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 16 Pernod Ricard India Pvt Ltd: Competitive Position 2009
SABMILLER INDIA LTD - ALCOHOLIC DRINKS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 17 SABMiller India Ltd: Key Facts
Summary 18 SABMiller India Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 19 SABMiller India Ltd: Production Statistics 2009
COMPETITIVE POSITIONING
Summary 20 SABMiller India Ltd: Competitive Position 2009
SAMANT SOMA WINES LTD - ALCOHOLIC DRINKS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 21 Samant Soma Wines Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 22 Samant Soma Wines Ltd: Competitive Position 2009
UNITED BREWERIES LTD - ALCOHOLIC DRINKS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 23 United Breweries Ltd: Key Facts
Summary 24 United Breweries Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 25 United Breweries Ltd: Production Statistics 2008
COMPETITIVE POSITIONING
Summary 26 United Breweries Ltd: Competitive Position 2009
UNITED SPIRITS LTD - ALCOHOLIC DRINKS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 27 United Spirits Ltd: Key Facts
Summary 28 United Spirits Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 29 United Spirits Ltd: Production Statistics 2009
COMPETITIVE POSITIONING
Summary 30 United Spirits Ltd: Competitive Position 2009
ALCOHOLIC DRINKS IN INDIA
EXECUTIVE SUMMARY
Indian alcoholic drinks industry expected to beat global recession blues
Growth in small cities and towns buoys the industry
Niche categories attract alcoholic drinks players
Upmarket outlets create opportunities for premium products
Robust growth forecast for alcoholic drinks
KEY TRENDS AND DEVELOPMENTS
Impact of economic slowdown is not extensive
Protectionist policies dampen growth in the premium segment
Importers and distributors step up activity
Smaller cities drive volume growth
Specialist Retailers
Market Merger and Acquisition Activity
Summary 31 Speculated Merger and Acquisition Activity 2009-2010
TERRITORY KEY TRENDS AND DEVELOPMENTS
East and Northeast India
North India
South India
West India
RURAL VS URBAN KEY TRENDS AND DEVELOPMENTS
MARKET BACKGROUND
Legislation
Table 21 Number of On-trade Establishments by Type 2004-2008
TAXATION AND DUTY LEVIES
Table 22 Taxation and Duty Levies on Beer 2009
Table 23 Taxation and Duty Levies on Wine 2009
Table 24 Taxation and Duty Levies on RTDs 2009
Table 25 Taxation and Duty Levies on Spirits 2009
Table 26 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Sectors 2009
Table 27 Selling Margin of a Typical Beer Brand 2009 – Kingfisher Strong Premium
Table 28 Selling Margin of a Typical Imported Wine Brand 2009 – Moët & Chandon
Table 29 Selling Margin of a Typical Domestic Wine Brand 2009 – Sula Vineyards
Table 30 Selling Margin of a Typical Imported Spirits Brand 2009 – Johnnie Walker Red Label
Table 31 Selling Margin of a Typical Domestic Spirits Brand 2009 – Bagpiper
OPERATING ENVIRONMENT
Table 32 Country Liquor Production in India
MARKET INDICATORS
Table 33 Retail Consumer Expenditure on Alcoholic Drinks 2004-2009
MARKET DATA
Table 34 Sales of Alcoholic Drinks by Sector: Total Volume 2004-2009
Table 35 Sales of Alcoholic Drinks by Sector: Total Value 2004-2009
Table 36 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2004-2009
Table 37 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2004-2009
Table 38 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Volume 2009
Table 39 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Value 2009
Table 40 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Volume 2009
Table 41 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Value 2009
Table 42 Sales of Alcoholic Drinks by Region: Total Volume 2004-2009
Table 43 Sales of Alcoholic Drinks by Region: Total Value 2004-2009
Table 44 Sales of Alcoholic Drinks by Region: % Total Volume Growth 2004-2009
Table 45 Sales of Alcoholic Drinks by Region: % Total Value Growth 2004-2009
Table 46 Sales of Alcoholic Drinks by Rural-Urban % Analysis 2009
Table 47 Company Shares of Alcoholic Drinks by Global Brand Owner 2005-2009
Table 48 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2009
Table 49 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2009
Table 50 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2009-2014
Table 51 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2009-2014
Table 52 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2009-2014
Table 53 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2009-2014
Table 54 Forecast Sales of Alcoholic Drinks by Region: Total Volume 2009-2014
Table 55 Forecast Sales of Alcoholic Drinks by Region: Total Value 2009-2014
Table 56 Forecast Sales of Alcoholic Drinks by Region: % Total Volume Growth 2009-2014
Table 57 Forecast Sales of Alcoholic Drinks by Region: % Total Value Growth 2009-2014
DEFINITIONS
Published data comparisons
Sources
Summary 32 Research Sources