The Indian Hot Drinks Market: What Consumers Drink and Why?

Published: October 2013

Publisher: Canadean Ltd

Product ref: 185337

Pages: 48

Format: PDF

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Report description

Product Synopsis
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.

Key Highlights
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.

Table of contents

1 Introduction
1.1 What is this Report About?
1.2 Definitions
1.2.1 Consumer Trends
1.2.2 Consumer Groups
1.2.3 End Consumers
1.2.4 Volume Units and Aggregations
1.2.5 Exchange Rates
1.2.6 Population Profiles (for interpretation of tables and charts)
2 Methodology
2.1 Introduction
2.2 Initial data are based on a large scale, international program of online consumer surveys
2.3 Demographic groups tracking provides time series data
3 Consumer Segmentation, Group Value and Trend Influence
3.1 Cohort Groups and Hot Drinks Market Value
3.1.1 Age Groups
3.1.2 Gender Groups
3.1.3 Location Groups
3.1.4 Education Achieved Groups
3.1.5 Wealth Groups
3.1.6 Busy Lives Groups
3.2 Cohort Groups and Market Value by Category
3.2.1 Coffee
3.2.2 Other Hot Drinks
3.2.3 Tea
3.3 Behavioral Trends and Market Value
3.3.1 Coffee
3.3.2 Other Hot Drinks
3.3.3 Tea
4 Consumption Analysis
4.1 Consumption Frequencies by Age and Gender
4.1.1 Coffee
4.1.2 Other Hot Drinks
4.1.3 Tea
4.2 Consumer Profiles by Product Category
4.2.1 Coffee
4.2.2 Other Hot Drinks
4.2.3 Tea
5 Brand vs. Private Label Uptake
5.1 Brand vs. Private Label Consumer Penetration
5.1.1 By Category
5.2 Hot Drinks Brand Choice and Private Label Consumer Penetration
5.2.1 Coffee
5.2.2 Other Hot Drinks
5.2.3 Tea
6 The Share of Consumers Influenced by Trends
6.1 Trend Drivers of Consumers' Product Choices
6.1.1 Overall Hot Drinks
6.1.2 Coffee
6.1.3 Other Hot Drinks
6.1.4 Tea
7 Consumption Impact: Market Valuation
7.1 Hot Drinks Value Impact of Consumer Consumption Behavior
7.1.1 Market Value by Category
7.1.2 Market Volume by Category
7.2 Hot Drinks Value Analysis by Category
7.2.1 Market Value by Category
7.2.2 Expenditure per Capita by Category
7.2.3 Expenditure per Household by Category
7.3 Hot Drinks Volume Impact of Consumer Behavior Trends
7.3.1 Market Volume by Category
7.3.2 Consumption per Capita by Category
7.3.3 Consumption Per Household by Category
8 Appendix
8.1 About Canadean
8.2 Disclaimer

List of Tables
Table 1: Volume Units for the Hot Drinks Market
Table 2: Foreign Exchange Rate - INR vs. USD
Table 3: India Survey Respondent profile (weighted), 2012
Table 4: India Hot Drinks Value Share (%), by Age Groups, 2012
Table 5: India Hot Drinks Value Share (%), by Gender, 2012
Table 6: India Hot Drinks Value Share (%), by Urban and Rural Dwellers, 2012
Table 7: India Hot Drinks Value Share (%) by Education Level Achieved Groups, 2012
Table 8: India Hot Drinks Value Share (%) by Wealth Groups, 2012
Table 9: India Hot Drinks Value Share (%) by Busy Lives Groups, 2012
Table 10: India Coffee Consumer Group Share (% market value), 2012
Table 11: India Other Hot Drinks Consumer Group Share (% market value), 2012
Table 12: India Tea Consumer Group Share (% market value), 2012
Table 13: India Total Coffee Value (Indian Rupee millions) and Value Share Influenced by Behavioral Trends, 2012
Table 14: India Total Other Hot Drinks Value (Indian Rupee millions) and Value Share Influenced by Behavioral Trends, 2012
Table 15: India Total Tea Value (Indian Rupee millions) and Value Share Influenced by Behavioral Trends, 2012
Table 16: India Coffee Consumption Frequency Analysis (% by Age Group, by Consumption Group), 2012
Table 17: India Coffee Consumption Frequency Analysis (% by Gender by Consumption Group), 2012
Table 18: India Other Hot Drinks Consumption Frequency Analysis (% by Age Group, by Consumption Group), 2012
Table 19: India Other Hot Drinks Consumption Frequency Analysis (% by Gender by Consumption Group), 2012
Table 20: India Tea Consumption Frequency Analysis (% by Age Group, by Consumption Group), 2012
Table 21: India Tea Consumption Frequency Analysis (% by Gender by Consumption Group), 2012
Table 22: India Coffee Consumer Profiles (% consumers by sub-group), 2012
Table 23: India Other Hot Drinks Consumer Profiles (% consumers by sub-group), 2012
Table 24: India Tea Consumer Profiles (% consumers by sub-group), 2012
Table 25: India Hot Drinks Private Label Consumer Penetration (% Consumers Using), by Category, 2012
Table 26: India Coffee Consumer Penetration of Survey-tracked Brands and Private Label (% Consumers Using), 2012
Table 27: India Other Hot Drinks Consumer Penetration of Survey-tracked Brands and Private Label (% Consumers Using), 2012
Table 28: India Tea Consumer Penetration of Survey-tracked Brands and Private Label (% Consumers Using), 2012
Table 29: India Hot Drinks: Percentage of Consumers Stating that Specific Trends Influence Their Consumption, 2012
Table 30: India Coffee: Percentage of Consumers Stating that Specific Trends Influence Their Consumption, 2012
Table 31: India Other Hot Drinks: Percentage of Consumers Stating that Specific Trends Influence Their Consumption, 2012
Table 32: India Tea: Percentage of Consumers Stating that Specific Trends Influence Their Consumption, 2012
Table 33: India Hot Drinks Market Value (Indian Rupee million), by Category, 2012
Table 34: India Hot Drinks Market Value (US$ million), by Category, 2012
Table 35: India Hot Drinks Market Volume by Category, 2012
Table 36: India Hot Drinks Market Value (US$ million), by Category, 2012
Table 37: India Hot Drinks Expenditure Per Capita (Indian Rupee), by Category, 2012
Table 38: India Hot Drinks Expenditure Per Capita (US$), by Category, 2012
Table 39: India Hot Drinks Expenditure Per Household (Indian Rupee), by Category
Table 40: India Hot Drinks Expenditure Per Household (US$), by Category
Table 41: India Hot Drinks Market Volume (Ltr m ) by Category, 2012
Table 42: India Hot Drinks Consumption Per Capita (Ltr ) by Category, 2012
Table 43: India Hot Drinks Consumption Per Household (Ltr ) by Category, 2012

List of Figures
Figure 1: Consumer Trends Report Methodology
Figure 2: India Hot Drinks Value Share (%), by Age Groups, 2012
Figure 3: India Hot Drinks Value Share (%), by Gender, 2012
Figure 4: India Hot Drinks Value Share (%), by Urban and Rural Dwellers, 2012
Figure 5: India Hot Drinks Value Share (%) by Education Level Achieved Groups, 2012
Figure 6: India Hot Drinks Value Share (%) by Wealth Groups, 2012
Figure 7: India Hot Drinks Value Share (%) by Busy Lives Groups, 2012
Figure 8: India Coffee Consumption Frequency Analysis (% by Age Group by Consumption Group), 2012
Figure 9: India Coffee Consumption Frequency Analysis (% by Gender by Consumption Group), 2012
Figure 10: India Other Hot Drinks Consumption Frequency Analysis (% by Age Group by Consumption Group), 2012
Figure 11: India Other Hot Drinks Consumption Frequency Analysis (% by Gender by Consumption Group), 2012
Figure 12: India Tea Consumption Frequency Analysis (% by Age Group by Consumption Group), 2012
Figure 13: India Tea Consumption Frequency Analysis (% by Gender by Consumption Group), 2012
Figure 14: India Hot Drinks Market Value (US$ million), by Category, 2012
Figure 15: India Hot Drinks Expenditure Per Capita (US$), by Category, 2012
Figure 16: India Hot Drinks Expenditure Per Household (US$), by Category

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Related research categories

By sector: Hot drinks, General drinks

By market: India (in Asia), India (in BRICM)