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Market facts

Annual turnover, €1212 Mn (INR 68,000 Mn)
Industry currently growing at 10 –12%
Consumer industry includes Liquor, Aerated drinks, processed foods, etc.
Liqour - Estimated market: €445 Mn (INR 25,000 Mn). Growing at 9-10%
Aerated Drinks - Around110 soft drink producing units (60% being owned by Indian bottlers). Market growing at 6%-7% annually
Dairy Products - Dairy industry growing at 6 -8% per annum
Processed Food -Estimated market: €142 Mn (INR 8,000 Mn). Growing at 12 -15% per annum
Cosmetics - Overall market estimated: €625 Mn (INR 35,000 Mn)

The industry has changed from being a seller’s market to a buyer’s market.
The information boom and easy access to a wide variety of brands have all had a significant impact on the buying behavior of consumers.
Changes in duty structure, rules and regulations.
Industry does not have entry barriers and with the opening up of the economy, there are multiple ways of market entry; it could be bottled in India (BII) or bottled in origin (BIO) or bulk imported and locally bottled.
Changing life styles of end users
Soft drinks industry has asked for abolition of the 8% Special Excise Duty (SED) on aerated soft drinks in the budget
Changes in technology of processing
Increase in production of dependent products
Agribusiness -priority sector
Increase in exports market
Tax exemption on most food products
Increase in consumption of ready-to-eat packs
Greater product choice and availability
Increasing importance on appearance has increased demand for cosmetics
Increased disposable income has led to growth in demand for premium products
The urban population in particular, with its rising purchasing power, is the main force that is driving the demand for cosmetic products in India