beer market india sample

Beer Market - India

September 2009

2BEER MARKET – INDIA.PPT

SAMPLE

Executive Summary

Market

Drivers &

Challenges

Trends

Competition

� Indian beer market is valued at INR XX bn with volume sales of YY mn cases for FY 20-- - --

�The market is expected to grow at an annual rate of a% till 20- -

�Foreign brewers are eyeing the Indian beer market which is largely untapped and has growth

potential

�Drivers:

– Huge market potential

– Rising income levels

– Entry of international brands

�Challenges:

– Regulatory Environment

– High tax structure

�With current duopoly situation and entry of foreign players, beer industry in India will quickly

witness consolidation

�Premium beer segment is outpacing the mainstream beer market touching a growth rate of

between b-c%

�Emerging new sub-categories of beer with consumers in India open for experimenting

�Growing demand for barley and evolving contract farming

�More than d% of the market is controlled by two major players Company 1 (u%) and Company 2

(v%)

�With Company 3 acquiring Company 4, it has potential to emerge as the third major player

�The market is set to flourish with W new breweries and X international brands in next Y years


•Market Overview

•Drivers & Challenges

•Characteristics and Trends

•Competition

•Key Developments


SAMPLE

Indian consumers prefer strong lagers which has higher

alcoholic content

Malted wheat and barley are used for this German style beerWheat Beer

(Weizen)

Fruit, usually berries, is added either during primary fermentation or laterFruit Beer

Barley is kilned for a long period of time which creates richer flavoursDark Beer

Highly hopped for a more dry and aromatic beer. It is pale in colour but strongBitter

Developed as a sweeter and cheaper alternative to dark alesMild Beer

Dark and heavy, with roasted unmalted barley and, often caramel malt or sugarStout

Uses top-fermenting yeast, is a more aromatic and fruity productAle

Brewed using bottom-fermenting yeast that ferments slowly at a low temperature to create a

smoother, mellow beer Lager

Categories of beer

Indian beer market is dominated by Category X and its various shadesIndian beer market is dominated by Category X and its various shades


SAMPLE

With the global beer market being stagnant, the focus of

international firms is on the untapped potential in India

• Indian beer market has witnessed a steady growth of b% over a decade

• India is currently among top three markets in Asia in terms of expected growth rates

• There are X units manufacturing beer in India under license from the Government

• The market is set to flourish with Y new breweries and Z international brands in the next U years

• Foreign brewers are eyeing the Indian beer market which is largely untapped and has growth potential

Market Overview Market size & growth

0

10

20

30

40

50

2008

v

2009

w

2010e

x

2011e

a%

INR bn

u

Segment share (volume - wise, 20--)

m%

Segment 2

l%

Segment 1

YY mn cases

Growth in per capita beer consumption

2000

qp

2005

q

2010

0

300

600

900

Population (mn)

1.200

0,0

1,0

1,5

0,5

Consumption (litres)


Drivers & Challenges - Summary

Huge market potential

Drivers

Entry of international brands

Rising income levels

High tax structure

Challenges

Regulatory Environment


Characteristics and Trends - Summary

Premium beer market outpacing

mainstream beer market

New forms of beer being introduced in market

Increase in merger and

acquisition activity

Rise in barley prices and emergence of contract farming

Characteristics

and Trends


SAMPLE

Premium beer segment is outpacing the mainstream beer

market touching a growth rate of between b-c%

0 10 20 30 40 50

p qType 1

Type 2 s

%

rMinimum

Maximum

Type 1

Type 2

v%

u%

Overview Market share of premium beer (volume)

Growth rate of premium beer Premium brands in Indian beer market

• The Indian beer industry is moving towards

premiumization

• Lifestyle changes and increasing western culture in

India are some of the factors driving the premium

segment

• Many domestic and foreign premium brands are

finding the interests of young urban working class

• Premium beers are priced about a% higher than

regular brands

Brand 7, Brand 8, Brand 9 and

Brand 10

Other Premium

Brands

Brand 4, Brand 5 and Brand 6Company 2

Brand 1, Brand 2 and Brand 3 Company 1


SAMPLE

Indian beer market presents a huge growth potential in terms of

volume, categories and variants

• The Indian beer market is dominated by X players

controlling more than a% of the market

• Strong beer is predicted to grow faster as it is

perceived to offer value for money alternative to

spirits

• With Company 1 acquiring Company 2, it has

potential to emerge as the third major player in the

Indian beer market

• The future of beer market in India looks positive with

the entry of many international players

• Beer sales will increase along with increasing number

of brands and sub-categories in India

• Existing players like Company 3 and Company 4 are

planning to expand their range of products

• New players like Company 5 and Company 6 are

bringing their internationally renowned brands to

India

• The market is set to flourish with Y new breweries

and Z international brands in the next U years

Competition Market share (20--)

b% Company 3

c%Company 4

d%

Others

Market Share (segment wise)

e%

Company 4

f%

Company 3

g%

Others

i%

h%

j%

Strong Mild

beer market india sample

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