The rise and rise of the Indian beverages market

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drink technology India finds fertile soil
India is one of the fastest growing economies in the world. It has a prosperous middle class, numbering around 300 million, who are oriented towards western consumer habits. The beverages market is profiting from this, and for many years it has been experiencing a unique boom. Already beverages consumption in India is the third highest in the world, after the US and China – and there seems to be no end in sight to this rise. Across all categories of beverages, further increases – some in double-digit figures – are predicted for the coming years. In this land of tea and coffee drinkers, packaged cold beverages in particular have tremendous potential. Rising consumption places demands on corresponding investment on the part of the beverages and food industry. Existing plant and machinery has to be modernised, and new installations set up. It is against this fertile background that drink technology India 2010 is taking place – from 18 to 20 November 2010 at the Bombay Exhibition Centre.

The Indian market for beverages
India is one of the fastest growing economies in the world. Today India is the tenth largest economy and the third largest food processor worldwide. Due to the extraordinary developments in all important industrial sectors, the demand for machinery and equipment has grown rapidly within the last ten years – a demand that cannot be met exclusively out of India’s production.
Despite a considerable increase in the supply provided by local food processing and packaging machinery manufacturers, there is a high demand for foreign machinery featuring state-of-the-art technology. For the manufacturers of food processing and packaging machinery, India has become a very important market in Asia with strong growth potential. Within the last five years the Indian imports of food processing and packaging machinery increased by 200 percent and amounted to 550 US $ million in 2008. With a market share of 23 percent Germany is the most important supplier to the Indian food and beverage industry.
Non-alcoholic beverages
The carbonated soft drinks industry in India comprises over 100 plants across all states. It provides direct and indirect employment for over 125,000 employees. It has attracted one of the highest foreign direct investments in the country amounting to around 1049 US $ million.
Soft drinks constitute the third largest packaged food segment in India after packaged tea and packaged biscuits. But the penetration level of carbonated soft drinks in India is still low compared with other developing markets, an indication for further potential for rapid growth.
The market size for bottled water in India has been estimated at 570 US $ million in 2008. With an annual growth rate of 14.5 percent volume sales of bottled water will increase rapidly within the next five years.
Sales volume of non-alcoholic drinks in India
litres mill.
Annual growth rate 2009-2013
bottled water
14.5 %
carbonated soft drinks
6.7 %
Source: Euromonitor International 2009
Alcoholic beverages
India is one of the largest markets for alcoholic beverages in the world. The sales volume of beer amounted to 1074 million litres in 2008. 56 units are engaged in manufacturing beer under the licence of the Indian Government. Sales volume of spirits has grown very fast within the last five years from 800 million litres in 2004 to 1234 million litres in 2008.
The annual growth rate of beer volume sales will reach 12 percent, sales volume of spirits will grow 10 percent per annum.
Sales volume of alcoholic drinks in India
litres mill.
Annual growth rate 2009-2013
12 %
9.7 %
Source: Euromonitor International 2009
Unlike most other Asian countries, dairy products are a well-established part of the national diet in India. With an annual output of more than 100 million tons, India is the largest milk producer in the world. Currently, only 13 percent of the milk is processed. 85 percent is distributed by the unorganised sector, but the organised sector is growing rapidly. Within the next years the demand for packaged milk and milk products will increase because the growing middle-class, health-conscious consumer segment – especially in towns and cities – is turning towards the western way of life and thus requires more and more processed and packaged food in modern supermarkets. The availability of fresh/pasteurised and long-life/UHT milk is increasing across the country.
in 1,000 tons
Annual growth rate 2009-2013
drinking milk products
Source: Euromonitor International 2009
For further information please contact:
VDMA Food Processing and Packaging Machinery
Beatrix Fraese
Lyoner StraЯe 18
60528 Frankfurt
Tel. 049-69-6603-1418
Fax 049-69-6603-2418
drink technology India
drink technology India (dti), International Trade Fair for Beverage and Liquid Food Technology, attracts trade visitors (manufacturers of beverages of all kinds and producers of liquid food) from across India and neighbouring regions. In 2010 it takes place for the first time as a cooperation with International PackTech India, the International Exhibition and Conference for the Packaging and Processing Industry. Both fairs are accompanied by a shared Exhibitor Forum. The venue for these tandem events is the Bombay Exhibition Centre in Mumbai, and the dates are 18 to 20 November 2010. The organiser of dti is Messe Mьnchen GmbH, via its subsidiary, Messe Mьnchen International India Pvt. Ltd.; International PackTech India is the responsibility of Messe Dьsseldorf GmbH and its subsidiary Messe Dьsseldorf India Pvt. Ltd. Through this cooperation the organisers are creating a single large trading platform for customers from the packaging industry and from the beverage and liquid-food industry.
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Press contacts
Johannes Manger and Maritta Dцtter
Tel. (+49 89) 949-20630, Fax (+49 89) 949-20689
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