alcoholic drinks: thirst for growth - world view and india in focus
TRANSCRIPT
ALCOHOLIC DRINKS: THIRST FOR GROWTH
WORLD VIEW AND INDIA IN FOCUS
DANIEL KEOHANE – RESEARCH DIRECTOR
INA DAWER – RESEARCH MANAGER, INDIA
27 FEBRUARY 2015
THE GLOBAL MARKET
INDIA IN FOCUS
COMPETITIVE LANDSCAPE - INDIA
WHAT LIES AHEAD
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Alcoholic drinks: view from aboveTHE GLOBAL MARKET
Australasia
North America
34
Eastern Europe
28
Asia Pacific
94
3
Latin America
38
Western Europe
43
Middle East & Africa
17
World 2015
257billion litres
OTHER
WINE
BEERSPIRITS
India
5billion litres
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Thrift
Sustainability
Technology
Authenticity
Wellbeing
Simplicity
Freedom
From millions of Boomers to booming MillennialsTHE GLOBAL MARKET
Post-recession, Thrift returned from the cold
Sustainability is increasingly permeating consumer
behaviour on all levels
Technology is enabling and
disrupting sectors
Authenticity is ever more a differentiator
as conspicuous consumption falls out
of favour
Wellbeing plays a vital role in an
“always on” world
Simplicity is an antidote to consumerism,
endless choice, and constantly updated
services
Freedom to choose, to see, to
listen, to do and to say is crucial for today’s consumer
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Speaking MillennialTHE GLOBAL MARKET
Orijin BittersDiageoNigeria
D-Vine10 VinsFrance
SeedlipSeedlipUK
SteamrailColesUS
UprootUproot WinesUS
Tennessee HoneyBrown FormanUS
THE GLOBAL MARKET
INDIA IN FOCUS
COMPETITIVE LANDSCAPE - INDIA
WHAT LIES AHEAD
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South Korea
Japan China Vietnam Thailand Hong Kong, China
Singapore
Taiwan Phil-ip-
pines
Sri Lanka
Malaysia India Bhutan0
10
20
30
40
50
60
70
80
90 Per capita volumes in select APAC countries
Per
capi
ta in
litr
es
Rank = 29
Peak Penetration?
APAC Average
India’s per capita volume consumption remains lowINDIA IN FOCUS
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-5% 0% 5% 10% 15% 20%0%
2%
4%
6%
8%
10%
12%
14%
16%
Beer
RTDs/High-Strength Premixes
Spirits
Brandy
Rum
Whiskies
White Spirits
Wine
Alcoholic Drinks Category Performance 2015-2019
% Growth (2014/15)
Fore
cast
CA
GR
(201
5/19
)Beer outgrows spirits total volume sales in 2016INDIA IN FOCUS
*Bubble size represents total volume sales, 2015
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Alcoholic Drinks
Aspirational lifestyles lead consumers to premium alcoholic drinksINDIA IN FOCUS
• New flavours and varieties attract young consumers
• Health awareness drive consumption
• Domestic wines gaining popularity in on-trade channel
RTD’sWine
• Single malt scotch becoming mainstream
• No longer gender specific
Spirits
• Increased uptake of premium beers
• Craft beer gain popularity
Beer
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Philippines India Japan Thailand China South Korea Vietnam0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
-2%
0%
2%
4%
6%
8%
10%
On-Trade vs Off-Trade Volume Sales 2015
On trade Off trade On trade 2015-2019% CAGR
Vol
ume
(mill
ion
litre
s)India to lead growth in on-trade volume salesINDIA IN FOCUS
% v
olum
e gr
owth
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40%
20%
20%
12%
8%
Going to a Pub / Bar for a Drink - Small Group of Friends
25-34 35-44 45-54 55-64 65+
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
0
50000
100000
150000
Total Population (‘000) by Age 2015/2030
2015 2030
Rise of millennials to bolster the growth of on-trade channelINDIA IN FOCUS
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Undaunted strivers to drive the consumption of premium varietiesINDIA IN FOCUS
$$$$
$Brands names are not
importantI prefer brands
names
I love to shop
I only shop when I have to
Secure Traditionalist
Prudent Pragmatist
Humble Homebody
Undaunted Striver
Restless Spender
THE GLOBAL MARKET
INDIA IN FOCUS
COMPETITIVE LANDSCAPE - INDIA
WHAT LIES AHEAD
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2009 rank:6th 2014 rank: 5th ABD Pvt
Ltd
• Wider portfolio of mass spirits and new launches in the premium end- Officer’s Choice Blue
2009 rank:9th 2014 rank:7th
Radico Khaita
n • Focus on premium spirits
steered growth- Verve
2009 rank: 11th 2014 rank:6th Carlsberg
• Launch of premium beer brands in India–Carlsberg and Tuborg
A closer look at manufacturers’ strategiesCOMPETITIVE LANDSCAPE
Ranks are on the basis on volume sales
Ranking of Companies – Total Volume Sales – India vs World 2014Company World Presence in
IndiaAnheuser-Busch InBev NV
1
SABMiller Plc 2
Heineken NV 3
Carlsberg A/S 4
China Resources Enterprise Ltd
5
Tsingtao Brewery Co Ltd
6
Molson Coors Brewing Co
7
Beijing Yanjing Brewery Co Ltd
8
Kirin Holdings Co Ltd
9
Diageo Plc 10
THE GLOBAL MARKET
INDIA IN FOCUS
COMPETITIVE LANDSCAPE - INDIA
WHAT LIES AHEAD
© Euromonitor International
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Innovation is more important than everWHAT LIES AHEAD
Flavours
Packaging
HealthSpin
Positioning
Hybrid products
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Alcoholic Drinks
Trends to watch out forWHAT LIES AHEAD
• New flavours inspired by on-trade
• Premium wines to gain traction
RTD’sWine
Spirits
• Launch of craft beer by microbreweries
Beer
• Customised marketing for women
• Evolution of products such as liqueurs
THANK YOU FOR LISTENINGDaniel Keohane – [email protected] Dawer – [email protected]
@Euromonitor
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Euromonitor International Market Research Group
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