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September 2009
Executive Summary
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- -
Market Foreign brewers are eyeing the Indian beer market which is largely untapped and has growth
potential
Drivers &
Drivers:
PLE
– Huge market potential
Challenges:
– Regulatory Environment
M
– Rising income levels – High tax structure
Challenges – Entry of international brands
SA
With current duopoly situation and entry of foreign players, beer industry in India will quickly
witness consolidation
Trends 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%)
Competition
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
Categories of beer
Brewed using bottom-fermenting yeast that ferments slowly at a low temperature to create a
Lager
smoother, mellow beer
Ale
LE
Uses top-fermenting yeast, is a more aromatic and fruity product
P
M
Stout Dark and heavy, with roasted unmalted barley and, often caramel malt or sugar
Mild Beer
Bitter SA
Developed as a sweeter and cheaper alternative to dark ales
Highly hopped for a more dry and aromatic beer. It is pale in colour but strong
Dark Beer Barley is kilned for a long period of time which creates richer flavours
Fruit Beer Fruit, usually berries, is added either during primary fermentation or later
Wheat Beer
Malted wheat and barley are used for this German style beer
(Weizen)
Indian
Indian beer
beer market
market isis dominated
dominated by
by Category
Category XX and
and its
its various
various shades
shades
E
w
terms of expected growth rates 40
L
v
• There are X units manufacturing beer in India under u
P
30
license from the Government
• The market is set to flourish with Y new breweries 20
SAM
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
Growth in per capita beer consumption
10
0
2008 2009
Segment share (volume - wise, 20--)
2010e 2011e
Challenges
Drivers
Regulatory Environment
Huge market potential
High tax structure
Characteristics
and Trends
segment
P E
India are some of the factors driving the premium
L
• Many domestic and foreign premium brands are
regular brands
0 10 20 30 40 50
Company 1 Brand 1, Brand 2 and Brand 3 %
Type 1 p q
Company 2 Brand 4, Brand 5 and Brand 6
spirits
P E
perceived to offer value for money alternative to
L
• With Company 1 acquiring Company 2, it has b% Company 3
SAM
potential to emerge as the third major player in the