Here we are discussing about some of the main reasons
and key factor behind success of alcoholic beverages market in India. As per the research
report, it is estimated to cross the USD 39 billion (over Rs 1,75,950 crore)
mark by 2014.(research firm Datamonitor).
Following are some of
the driving factors,
INDIA is turning out to
be an attractive territory for global players as consumption of alcohol has
saturated in many countries and even declined in traditional markets like
Europe, while India offers immense growth opportunities.(as per data monitor and KPMG research firm)
Increasing acceptance
of alcohol consumption among the rich and aspiring middle class, coupled with
rising disposable income and a large young population, indicate high growth
potential for the sector.
The target population for
alcoholic beverages –people aged 20-59 years is very large and growing.
According to a study by
the firm, the sector grew at a compound annual growth rate of 12 per cent
between 2004 and 2009, with the industry turnover touching USD 21.7 billion (over
Rs 97,910 crore) in 2009.(As per KPMG report).
On-trade sales are
expected to grow considerably, as growing affluence among young consumer will
spread the culture of frequenting pubs and restaurants’.
Along with that new alliances(
or acquisitions), emerging strategies and business models like contact bottling
(it is one kind of contract model),import alliances and permitted distribution
partnerships fueling such kind of rapid growth in this sector.
On the other hand good numbers
of investors are available for the private equity investments. As the market evolves
from nascent stage. Strategies such as partnership and alliances are coming up
with defined look.
Last but not least Indian
market (Indian consumer’s) unanimously contributing to the BCG MATRIX star.
