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: 103 | Publication date: Apr 2009
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
Moderate single-digit growth for hot drinks
In spite of the steep price hikes, hot drinks continued on its moderate volume growth trajectory in 2008. With the shrinking price gap between unpackaged and packaged tea and coffee, volume growth was driven by consumers from the unorganised sector shifting to packaged hot drinks, particularly tea. With consumers increasingly adopting instant coffee instead of roast and ground, instant coffee witnessed double-digit volume growth. Hot drinks with a health and wellness positioning, such as malt-based beverages and fortified/functional tea, performed well during the year. Companies continued their focus on increasing their rural distribution reach to expand volume sales.
Steep price hikes boost value growth
Price hikes in coffee, tea and other hot drinks spiked the value growth rate to double digits in spite of moderate volume growth in 2008. The average off-trade unit price of tea and coffee spiked by 9% each while other hot drinks recorded a 3% rise in average off-trade unit prices. The domestic prices of tea and coffee rose because crop failures in foreign coffee and tea producing regions raised the demand for Indian tea and coffee in foreign markets. The high prices of tea and coffee at domestic auctions forced tea and coffee players to pass on their high input costs to the consumer by reducing pack sizes and increasing the price points of their products. The price hikes in other hot drinks were related to the increasingly expensive costs of their key ingredients such as skimmed milk powder. Inflation and increasing costs of other inputs including fuel also contributed to the rise in prices.
Hindustan Unilever retains its leading position
Hindustan Unilever continued to be the leading player in hot drinks in India in 2008 with GlaxoSmithKline and Tata Tea in second and third position respectively. All three companies focused on leveraging on consumers’ growing concerns for health and wellness with Hindustan Unilever launching a fortified black loose tea while Tata Tea expanded its green tea portfolio to include loose green tea in addition to previously launched tea bags. GlaxoSmithKline launched Women’s Horlicks to target health conscious urban women. Regional companies such as Wagh Bakri and niche premium companies including Organic India and Amalgamated Beans Coffee & Trading continued to expand their presence in India.
Companies explore new distribution strategies
With volume growth slowing, companies sought to expand their consumer base in rural areas and drive value growth through the sales of their premium products. With distribution being the key handicap in expanding rural sales, companies such as Duncans Industries developed innovative strategies to reach rural areas such as tie-ups with the postal service and cooking gas suppliers. Wagh Bakri and Tata Tea launched tea Lounges to promote their premium speciality teas and Amalgamated Beans Coffee & Trading developed a premium concept for its new speciality coffee outlet, which retails exotic coffee blends. Although Kirana stores continued to dominate sales, supermarkets/hypermarkets provided hot drinks players with ample shelf space to display various flavours and brand variants enabling consumers to choose based on their taste preferences.
Moderate growth forecasted
As hot drinks in India, especially tea and other hot drinks, is growing from a large base, only moderate volume growth is expected in the forecast period. However, tea and other hot drinks are expected to be quite dynamic over the forecast period. Regional tea companies are expected to provide strong competition to national players and other hot drinks is expected to see the entry of new players as well as the expansion of the consumer base to include adults and the elderly. Volume growth is expected to be driven by consumers from rural and semi-urban areas shifting to packaged tea and value growth is predicted from urban consumers adopting premium speciality and health driven products.
Table of contents
HOT DRINKS IN INDIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Moderate single-digit growth for hot drinks
Steep price hikes boost value growth
Hindustan Unilever retains its leading position
Companies explore new distribution strategies
Moderate growth forecasted
KEY TRENDS AND DEVELOPMENTS
Companies explore new distribution channels
Companies increase their efforts to promote premium coffees and teas
Market segmentation becomes key growth strategy
Rise of health and wellness products
Companies expand distribution footprint
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 Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2003-2008
Table 2 Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2003-2008
Table 3 Retail Sales of Hot Drinks by Sector: Volume 2003-2008
Table 4 Retail Sales of Hot Drinks by Sector: Value 2003-2008
Table 5 Retail Sales of Hot Drinks by Sector: % Volume Growth 2003-2008
Table 6 Retail Sales of Hot Drinks by Sector: % Value Growth 2003-2008
Table 7 Foodservice Sales of Hot Drinks by Sector: Horecavolume1000 2003-2008
Table 8 Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2003-2008
Table 9 Total Sales of Hot Drinks by Sector: Total Volume 2003-2008
Table 10 Total Sales of Hot Drinks by Sector: % Total Volume Growth 2003-2008
Table 11 Retail Sales of Hot Drinks by Region: Volume 2003-2008
Table 12 Retail Sales of Hot Drinks by Region: Value 2003-2008
Table 13 Retail Sales of Hot Drinks by Region: % Volume Growth 2003-2008
Table 14 Retail Sales of Hot Drinks by Region: % Value Growth 2003-2008
Table 15 Foodservice Sales of Hot Drinks by Region: Horecavolume1000 2003-2008
Table 16 Foodservice Sales of Hot Drinks by Region: % Volume Growth 2003-2008
Table 17 Total Sales of Hot Drinks by Region: Total Volume 2003-2008
Table 18 Total Sales of Hot Drinks by Region: % Total Volume Growth 2003-2008
Table 19 Sales of Hot Drinks by Rural-Urban % Analysis 2008
Table 20 Hot Drinks Company Shares by Value 2004-2008
Table 21 Hot Drinks Brand Shares by Value 2005-2008
Table 22 Penetration of Private Label by Sector 2004-2008
Table 23 Sales of Hot Drinks by Distribution Format: % Analysis 2003-2008
Table 24 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2008
Table 25 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2008-2013
Table 26 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2008-2013
Table 27 Forecast Retail Sales of Hot Drinks by Sector: Volume 2008-2013
Table 28 Forecast Retail Sales of Hot Drinks by Sector: Value 2008-2013
Table 29 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2008-2013
Table 30 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2008-2013
Table 31 Forecast Foodservice Sales of Hot Drinks by Sector: Horecavolume1000 2008-2013
Table 32 Forecast Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2008-2013
Table 33 Forecast Total Sales of Hot Drinks by Sector: Total Volume 2008-2013
Table 34 Forecast Total Sales of Hot Drinks by Sector: % Total Volume Growth 2008-2013
Table 35 Forecast Retail Sales of Hot Drinks by Region: Volume 2008-2013
Table 36 Forecast Retail Sales of Hot Drinks by Region: Value 2008-2013
Table 37 Forecast Retail Sales of Hot Drinks by Region: % Volume Growth 2008-2013
Table 38 Forecast Retail Sales of Hot Drinks by Region: % Value Growth 2008-2013
Table 39 Forecast Foodservice Sales of Hot Drinks by Region: Horecavolume1000 2008-2013
Table 40 Forecast Foodservice Sales of Hot Drinks by Region: % Volume Growth 2008-2013
Table 41 Forecast Total Sales of Hot Drinks by Region: Total Volume 2008-2013
Table 42 Forecast Total Sales of Hot Drinks by Region: % Total Volume Growth 2008-2013
APPENDIX
Published Data Comparisons
Production/Import/Export Data
Table 43 Production/Imports/Exports/Apparent Consumption of Hot Drinks by Sector 2001-2008
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - INDIA
CADBURY INDIA LTD - HOT DRINKS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Cadbury India Ltd: Key Facts
Summary 3 Cadbury India Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 Cadbury India Ltd: Competitive Position 2008
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 2008
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 2007
COMPETITIVE POSITIONING
Summary 11 GlaxoSmithKline Consumer Healthcare Ltd: Competitive Position 2008
HINDUSTAN UNILEVER LTD - HOT DRINKS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Hindustan Unilever Ltd: Key Facts
Summary 13 Hindustan Unilever Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 14 Hindustan Unilever Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 15 Hindustan Unilever Ltd: Competitive Position 2008
NESTLé INDIA LTD - HOT DRINKS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 16 Nestlé India Ltd: Key Facts
Summary 17 Nestlé India Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 18 Nestlé India Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 19 Nestlé India Ltd: Competitive Position 2008
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
Summary 22 Tata Tea Ltd: Production Statistics 2008
COMPETITIVE POSITIONING
Summary 23 Tata Tea Ltd: Competitive Position 2008
TWININGS PVT LTD - HOT DRINKS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 24 Twinings Pvt Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 25 Twinings Pvt Ltd: Competitive Position 2008
WAGH BAKRI LTD - HOT DRINKS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 26 Wagh Bakri Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 27 Wagh Bakri Ltd: Competitive Position 2008
COFFEE IN INDIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 44 Coffee Machine Sales: 2002-2007
Table 45 Instant Coffee by Speciality Type 2004-2008
Table 46 Retail Sales of Coffee by Type: Volume 2003-2008
Table 47 Retail Sales of Coffee by Type: Value 2003-2008
Table 48 Retail Sales of Coffee by Type: % Volume Growth 2003-2008
Table 49 Retail Sales of Coffee by Type: % Value Growth 2003-2008
Table 50 Standard Vs Coffee Pods 2004-2008
Table 51 Coffee Company Shares 2004-2008
Table 52 Coffee Brand Shares 2005-2008
Table 53 Forecast Retail Sales of Coffee by Type: Volume 2008-2013
Table 54 Forecast Retail Sales of Coffee by Type: Value 2008-2013
Table 55 Forecast Retail Sales of Coffee by Type: % Volume Growth 2008-2013
Table 56 Forecast Retail Sales of Coffee by Type: % Value Growth 2008-2013
TEA IN INDIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 57 Retail Sales of Tea by Subsector: Volume 2003-2008
Table 58 Retail Sales of Tea by Subsector: Value 2003-2008
Table 59 Retail Sales of Tea by Subsector: % Volume Growth 2003-2008
Table 60 Retail Sales of Tea by Subsector: % Value Growth 2003-2008
Table 61 Tea Company Shares 2004-2008
Table 62 Tea Brand Shares 2005-2008
Table 63 Forecast Retail Sales of Tea by Subsector: Volume 2008-2013
Table 64 Forecast Retail Sales of Tea by Subsector: Value 2008-2013
Table 65 Forecast Retail Sales of Tea by Subsector: % Volume Growth 2008-2013
Table 66 Forecast Retail Sales of Tea by Subsector: % Value Growth 2008-2013
OTHER HOT DRINKS IN INDIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 67 Retail Sales of Other Hot Drinks by Subsector: Volume 2003-2008
Table 68 Retail Sales of Other Hot Drinks by Subsector: Value 2003-2008
Table 69 Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2003-2008
Table 70 Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2003-2008
Table 71 Other Hot Drinks Company Shares 2004-2008
Table 72 Other Hot Drinks Brand Shares 2005-2008
Table 73 Forecast Retail Sales of Other Hot Drinks by Subsector: Volume 2008-2013
Table 74 Forecast Retail Sales of Other Hot Drinks by Subsector: Value 2008-2013
Table 75 Forecast Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2008-2013
Table 76 Forecast Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2008-2013