Hot Drinks in India
Euromonitor International's Hot Drinks 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.
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Tables: 80 | Publication date: Oct 2007
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Coffee; Other hot drinks; Tea
Executive summary
“Chai” continues to be the most popular hot drink
From official conferences to railway station, tea remains the favourite hot beverage among Indians. The widespread availability of tea through the organised players, with different price points depending on the quality and the blend, has contributed to this position. Following the fall in production in the major tea growing regions in the world, prices have risen, although with little impact on the domestic market for tea in India. Despite the fall in the price of tea at auction during 2006, branded organised tea prices saw a price hike due to new launches and more innovative packaging. Awareness of speciality tea and tea bags remains concentrated among well travelled and high income consumers, while the consumption of loose black standard tea is preferred among the masses.
Consumer base for coffee expanding
Fresh coffee remains more popular than the instant format in off-trade volume terms. The South remains the largest consumer of fresh ground coffee. However, the increase in the number of chained outlets and social gatherings is boosting sales of instant coffee in the non-coffee drinking regions, and expanding the consumer base. Nestlé India Hindustan and Lever dominate sales of instant coffee, accounting for 95% of value sales in 2006.
Other hot drinks perform steadily backed by health consciousness
New launches by leading players in malt-based hot drinks, which cater to the dietary needs of health conscious adults have contributed to steady growth. Manufacturers are actively developing products to fulfil consumers’ nutritional requirements, suitable for the young, old and the sick. Improved retail distribution has aided in the growth of other hot drinks.
Threat from the unorganised sector in tea gradually reducing
Unorganised players constitute the major threat to organised players in tea and coffee. However, increasing consumer attention to the quality of products, growing brand loyalty and active promotions by manufacturers reflect a shift from unbranded to the branded products. Multinationals lead, with share in tea and coffee of over 60%, with the rest shared among regional players like Duncans and Wagh Bakri, which are striving to maximise volume sales by offering products at lower price points and with attractive promotional schemes. Their regional focus also offers advantages in terms of their ability to tailor products to local demand.
Rural consumption increasing marginally
With most of the population residing in rural areas, expanding the distribution networks to the rural areas offers opportunities to increase sales of branded hot drinks, particularly since the urban market for products like tea is saturated. Trial packs offered at low price points and promotions through village fairs and targeting the women folk have helped drive sales in the rural areas.
Table of contents
HOT DRINKS IN INDIA : MARKET INSIGHT
EXECUTIVE SUMMARY
“Chai” continues to be the most popular hot drink
Consumer base for coffee expanding
Other hot drinks perform steadily backed by health consciousness
Threat from the unorganised sector in tea gradually reducing
Rural consumption increasing marginally
KEY TRENDS AND DEVELOPMENTS
On-trade channels boost sales
Unit prices of hot beverages rise
Active promotions to drive sales
Regional players confident in competing with the major manufacturers
Government initiatives to revive production and increase consumption
TERRITORY KEY TRENDS AND DEVELOPMENTS
East and Northeast India
North India
South India
West India
RURAL VS URBAN KEY TRENDS AND DEVELOPMENTS
MARKET DATA
Table 1 Sales of Hot Drinks by Sector: Volume 2001-2006
Table 2 Sales of Hot Drinks by Sector: Value 2001-2006
Table 3 Sales of Hot Drinks by Sector: % Volume Growth 2001-2006
Table 4 Sales of Hot Drinks by Sector: % Value Growth 2001-2006
Table 5 Sales of Hot Drinks by Region: Volume 2001-2006
Table 6 Sales of Hot Drinks by Region: Value 2001-2006
Table 7 Sales of Hot Drinks by Region: % Volume Growth 2001-2006
Table 8 Sales of Hot Drinks by Region: % Value Growth 2001-2006
Table 9 Sales of Hot Drinks by Rural-Urban % Analysis 2006
Table 10 Hot Drinks Company Shares by Value 2002-2006
Table 11 Hot Drinks Brand Shares by Value 2003-2006
Table 12 Penetration of Private Label by Sector 2002-2006
Table 13 Sales of Hot Drinks by Distribution Format: % Analysis 2001/2006
Table 14 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2006
Table 15 Forecast Sales of Hot Drinks by Sector: Volume 2006-2011
Table 16 Forecast Sales of Hot Drinks by Sector: Value 2006-2011
Table 17 Forecast Sales of Hot Drinks by Sector: % Volume Growth 2006-2011
Table 18 Forecast Sales of Hot Drinks by Sector: % Value Growth 2006-2011
Table 19 Forecast Sales of Hot Drinks by Region: Volume 2006-2011
Table 20 Forecast Sales of Hot Drinks by Region: Value 2006-2011
Table 21 Forecast Sales of Hot Drinks by Region: % Volume Growth 2006-2011
Table 22 Forecast Sales of Hot Drinks by Region: % Value Growth 2006-2011
APPENDIX
Production/Imports/Exports
Table 23 Production/Imports/Exports/Apparent Consumption of Hot Drinks by Sector 2000-2005
Published Data Comparisons
DEFINITIONS
LOCAL COMPANY PROFILES - INDIA
CADBURY INDIA LTD - HOT DRINKS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 1 Cadbury India Ltd: Key Facts
Summary 2 Cadbury India Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 3 Cadbury India Ltd: Production Statistics 2005
COMPETITIVE POSITIONING
Summary 4 Cadbury India Ltd: Competitive Position 2006
DUNCANS INDUSTRIES LTD - HOT DRINKS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Duncans Industries Ltd: Key Facts
Summary 6 Duncans Industries Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 Duncans Industries Ltd: Competitive Position 2006
GLAXOSMITHKLINE CONSUMER HEALTHCARE LTD - HOT DRINKS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 8 GlaxoSmithKline Consumer Healthcare Ltd: Key Facts
Summary 9 GlaxoSmithKline Consumer Healthcare Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 10 GlaxoSmithKline Consumer Healthcare Ltd: Production Statistics 2006
COMPETITIVE POSITIONING
Summary 11 GlaxoSmithKline Consumer Healthcare Ltd: Competitive Position 2005
GOODRICKE GROUP LTD - HOT DRINKS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Goodricke Group Ltd: Key Facts
Summary 13 Goodricke Group Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 14 Goodricke Group Ltd: Competitive Position 2006
HINDUSTAN LEVER LTD - HOT DRINKS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 15 Hindustan Lever Ltd: Key Facts
Summary 16 Hindustan Lever Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 17 Hindustan Lever Ltd: Competitive Position 2006
NARASU'S COFFEE CO - HOT DRINKS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 18 Narasu’s Coffee Co: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 19 Narasu’s Coffee Co: Competitive Position 2006
TATA TEA LTD - HOT DRINKS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 20 Tata Tea Ltd: Key Facts
Summary 21 Tata Tea Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 22 Tata Tea Ltd: Competitive Position 2006
WAGH BAKRI LTD - HOT DRINKS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 23 Wagh Bakri Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 24 Wagh Bakri Ltd: Competitive Position 2006
COFFEE IN INDIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 24 Instant Coffee by Speciality Type 2003-2006
Table 25 Sales of Coffee by Type: Volume 2001-2006
Table 26 Sales of Coffee by Type: Value 2001-2006
Table 27 Sales of Coffee by Type: % Volume Growth 2001-2006
Table 28 Sales of Coffee by Type: % Value Growth 2001-2006
Table 29 Standard Vs Coffee Pods 2004-2006
Table 30 Coffee Company Shares 2002-2006
Table 31 Coffee Brand Shares 2003-2006
Table 32 Foodservice Sales of Coffee by Distribution Format 2001/2006
Table 33 Forecast Sales of Coffee by Type: Volume 2006-2011
Table 34 Forecast Sales of Coffee by Type: Value 2006-2011
Table 35 Forecast Sales of Coffee by Type: % Volume Growth 2006-2011
Table 36 Forecast Sales of Coffee by Type: % Value Growth 2006-2011
TEA IN INDIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 37 Sales of Tea by Subsector: Volume 2001-2006
Table 38 Sales of Tea by Subsector: Value 2001-2006
Table 39 Sales of Tea by Subsector: % Volume Growth 2001-2006
Table 40 Sales of Tea by Subsector: % Value Growth 2001-2006
Table 41 Tea Company Shares 2002-2006
Table 42 Tea Brand Shares 2003-2006
Table 43 Forecast Sales of Tea by Subsector: Volume 2006-2011
Table 44 Forecast Sales of Tea by Subsector: Value 2006-2011
Table 45 Forecast Sales of Tea by Subsector: % Volume Growth 2006-2011
Table 46 Forecast Sales of Tea by Subsector: % Value Growth 2006-2011
OTHER HOT DRINKS IN INDIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 47 Sales of Other Hot Drinks by Subsector: Volume 2001-2006
Table 48 Sales of Other Hot Drinks by Subsector: Value 2001-2006
Table 49 Sales of Other Hot Drinks by Subsector: % Volume Growth 2001-2006
Table 50 Sales of Other Hot Drinks by Subsector: % Value Growth 2001-2006
Table 51 Other Hot Drinks Company Shares 2002-2006
Table 52 Other Hot Drinks Brand Shares 2003-2006
Table 53 Forecast Sales of Other Hot Drinks by Subsector: Volume 2006-2011
Table 54 Forecast Sales of Other Hot Drinks by Subsector: Value 2006-2011
Table 55 Forecast Sales of Other Hot Drinks by Subsector: % Volume Growth 2006-2011
Table 56 Forecast Sales of Other Hot Drinks by Subsector: % Value Growth 2006-2011