The Rise and Rise of the Indian Beverages Market

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.