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Market Research Report

Soft Drinks in India

Published by	Euromonitor International
Published	April, 2010	Product code	120773
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Price	US $ 1900 PDF by E-mail ( Single User License)

Introduction
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Soft Drinks in India published by Euromonitor International in April, 2010. This report price starts from US $ 1900.

Introduction

Abstract

EXECUTIVE SUMMARY

Soft Drinks Witnesses Healthy Growth in India

Soft drinks recorded robust double digit off-trade value growth in 2009, which was higher than that witnessed in 2008. Bottled water and fruit/vegetable juice continued to grow strongly as more consumers turned to these products in the search of healthier options. Carbonates also witnessed good sales growth as the long summer helped to fuel sales. Energy drinks has witnessed a slowdown in sales growth as its is a premium priced product type and therefore not considered a necessity. Importantly, more consumers refrained from spending on non-essential items in the wake of the economic downturn.

Manufacturers Diversify on A Health and Wellness Platform

Manufacturers continued to focus on health and wellness products in 2009, introducing green tea versions of powder concentrates and RTD tea. There were also a number of launches in terms of new products and flavours in fruit/vegetable juice. The only new product launch in carbonates was Grappo Fizz by Parle Agro Pvt Ltd. Non-cola carbonates performed very well as these products are perceived by consumers to be less of a health threat than cola carbonates. Even in niche categories like energy drinks, sugar-free versions were introduced as manufacturers try to attract health conscious and diabetic consumers.

Coca-Cola India Continues To Lead Soft Drinks

Coca-Cola India Pvt Ltd continued to lead soft drinks in 2009, followed by PepsiCo India Holdings Pvt Ltd in off-trade value terms. The launch of Nimbooz by 7-Up (PepsiCo India) helped the company retain its leading position in the terms of off-trade value sales. Coca-Cola India and PepsiCo India continued to invest in soft drinks in India. However, domestic players such as Parle Agro, Parle Bisleri Ltd and Dabur India Ltd continued to provide tough competition to the leading multinationals. One competitive edge that domestic players hold is that unlike Coca-Cola India and PepsiCo India the bulk of their business does not come from carbonates, but instead from fruit/vegetable juice and bottled water, which are recording much more dynamic volume and value growth. Thus, while the leading multinationals retained their leading positions in off-trade value terms, they continued to record slight off-trade value share reductions in 2009, while these leading domestic players grew their shares.

Marginal Slowdown in Supermarkets/hypermarkets

The growth in supermarkets/hypermarkets boosted the soft drinks industry over much of the review period. However, due to the economic downturn, the off-trade volume share of supermarkets/hypermarkets decreased in 2009. This in turn affected some of the more niche and premium product types like energy drinks and reconstituted 100% juice which enjoyed high visibility through this distribution channels. However, this trend is not expected to continue as the economy recovers since consumers will revert to their previous shopping patterns.

Soft Drinks Is Expected To Record Healthy Sales Growth in the Forecast Period

Soft drinks is expected to witness a healthy double-digit total volume CAGR growth over the forecast period. As consumer awareness and understanding of the variety of soft drinks increases and as manufacturers continue to be innovative, soft drinks is expected to perform well. Products on the health and wellness platform and niche categories can expect to see good sales growth in the forecast period.