Getting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAI
Market mapping of packaged water & juice in india
1. By- Rajeev Sharma
MBA (2011-2013)
DoMS, IIT Roorkee
Mapping the market for Packaged
water and Packaged fruit juice in India
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. 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
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. 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. 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
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. 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. 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. 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. 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. 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. 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. 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
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. 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. 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. 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. Availability vs. fruit content
More Availability
Less availability
HighFruit
content
Lowfruit
content
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. 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. 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. 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.