This report provides the results for the Hot Drinks market in India from Canadean's unique, highly detailed study of consumers' Consumer Packaged Goods (CPG) consumption habits, and forms part of an overall series covering all CPG product markets. Its coverage includes, but is not limited to, consumption behaviors, the extent to which consumer trends influence their consumption, the value of the market these trends influence, and brand and private label choices as well as organized retailer choices. Much of this information can also be analyzed by specific consumer groups, providing hard and fast data on consumers and markets at the product category level.
Introduction and Landscape
Why was the report written?
Marketers in the Hot Drinks market face a major challenge. Understanding market size and segmentation is valuable, but the key to effective targeting is knowing just how valuable specific consumer groups are, and being able to quantify the impact of consumer trends. This data report solves these problems by providing survey-based data on consumer trends and consumer groups, and market data that shows the exact size of consumer groups, how much of the Hot Drinks market they account for, and which consumer trends drive their behavior.
What is the current market landscape and what is changing?
As consumer confidence increases with economic recovery, consumer trends will be directly affected. Since the global financial crisis of 2008-2009 the organized retail market has been characterized by an increase in the amount of discounted and own-brand products. Coffee, Tea, and Other Hot Drinks are considered essential items and therefore consumption patterns have not been comparatively affected. As economic and market recovery continues over 2012, consumption patterns will record a positive trend in both the medium and heavy frequency bands and the amount of non-users should decrease.
What are the key drivers behind recent market changes?
Consumers' uptake of products and the influence of consumer trends are fundamental causes of change in markets - making knowing what these trends are and the extent of their influence crucial. The survey-based data provided in this report examines over 20 consumer trends that affect the market and examines the share of consumption across 26 consumer groups. This data provides a detailed insight into exactly who the consumer is and just how much impact the latest consumer trends are having.
What makes this report unique and essential to read?
The data provided is unique in the market as it tracks consumer behavior through to its actual value impact on a product market. This provides readers with a unique data analysis of the market, allowing marketing tactics and strategy to be updated in line with the very latest consumer behaviors.
Key Features and Benefits
- Consumer data, based upon proprietary surveys and then consumer group tracking and modeling for the following specific categories: Coffee, Tea, and Other Hot Drinks.
- Detailed consumer segmentation based on survey data covering over 26 consumer groups, 20 consumer trends and consumption frequency for each product category.
- Volume shares in 2011 for brands and private label sales tracked by the survey.
Key Market Issues
- Consumption frequency analysis reveals that the Mid-Lifersage group contains the highest share of Heavy-frequency Tea consumers and therefore marketing planners are likely to design campaigns directed at this age-group.
- Group analysis reveals that the Older Young Adults age group accounts for nearly one-fifth of the Hot Drinks market in India, closely followed by the Pre-Mid-Lifersage group. A key reason for younger age groups' domination of the market is their sheer size.
- Consumer survey results indicate that Indian consumers look to hot drinks to provide them with relaxation from mental and physical stress. Moreover, consumption frequency and choice of hot drinks varies according to age group, with India's large young population a key demographic.
- Market valuation reveals that Tea accounts for more than 85% of the Indian Hot Drinks market in value terms, and is recording a strong growth rate. This indicates that there are investment opportunities and proven profits in India's Tea market.
- Brand analysis reveals that private labels have less than 6% penetration by volume for any of the Hot Drinks categories in India. This may be due to the fragmented nature of India's organized retail industry, with private label sales traditionally stronger in mature retail environments.
- The Better Off wealth group constitutes the largest share of the Indian Hot Drinks market. The Better Off and Moderate Income wealth groups constitute over half of the overall market. It should also be noted that more than a quarter of the market is comprised of the Hard Pressed category.