Nagpur soft drink segment value sales stood at US$2.8 million, with year-on-year growth of 34.3% in 2011-2012. The segment value sales are stipulated to reach US$7.7 million, with CAGR of 40.1% in next 2-3 years (2012-2015e). The market has witnessed exponential volume sales of 6.74 million units, with year-on-year growth of 22.1% in 2012. In 2015, Soft drink segment volume sales are stipulated to reach 13.52 million, with CAGR of 26.1% in next 2-3 years (2012-2015e).
Carbonated cola is the largest segment across Nagpur soft drink marketspace, constituting 80% of total local volume sales in 2011-2012. Non-cola (i.e. lime and orange based carbonated drinks) account for remaining 10% respectively in 2012. In 2015, carbonated cola segment is stipulated to contribute 78% of total marketspace with lime based non cola segment stealing market share to 11.6%. Orange based non cola segment will account for remaining 10.4% in next 2-3 years (2015e).
[...] Higher urbanization attributed to Nagpur as one of the fastest emerging information technology enabled services and BPO (business process outsourcing) hubs will attract younger population (aged between 15-24 years) old to the local market in next 3-5 years. In 2015, urban population is stipulated to account for 57% of total Nagpur district human capital count (employment based migration). In 2012, younger population constituted 60% of total local soft drink volume sales. Strategic investment into modern retail centric infrastructure and lifestyle: In 2012, modern retail outlets such as supermarkets accounted for 15% (2007:1%) of total local soft drink volume sales. [...]
[...] Although, it is stipulated that Nagpur will witness strong modern retail selling space expansion the impact on soft drink volume sales seems negligible. Further, manufacturers easy credit line towards non modern retail outlets will improve sustainability for Bakeries and pan shops (cigarette kiosks). Nagpur Soft Drink Market Outlook 2012 Distribution by Volume sales (2012) Kirana stores Cigarette Kiosks Supermarkets Bakeries Local departmental stores Distribution by Volume sales (2015e) Kirana stores Cigarette Kiosks Supermarkets Bakeries Local departmental stores Source: Tier2RetailResearch India estimates through trade interviews with retailers (October 2012) Nagpur Soft Drink Market Outlook 2012 Business and Growth Strategies Nagpur soft drink segment is on growth phase with PepsiCo and The Coca-Cola Company are aggressively expanding local distribution and retail network with offering ease of credit facility, discounted schemes and improved mark-ups to improve customer retention rates on long term basis. [...]
[...] PepsiCo is transferring Rs 20 (i.e cents) discount through distributors to retailers across Nagpur city on each purchased case. The Coca-Cola Company is providing Rs 10 (i.e cents) per case. PepsiCo has bottling plant for its PET rigid plastic and glass packaging products in Hingna Nagpur. The company supplies to domestic local market from its Hingna facility (except metal tin based 330 ml cans). Proximity to local market is enhancing PepsiCo in Nagpur soft drink market traditionally dominated by brand such as Thumps Up. [...]
[...] The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions, and recommendations that Tier2RetailResearchIndia Pvt Ltd delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such Tier2RetailResearchIndia Pvt Ltd can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect. i Exchange rate used is 1 US$ equals Rs 52.6 . [...]
[...] Carbonated Cola Brand Shares (2012) Thumps Up Pepsi Coke Diet Pepsi & Diet Coke Carbonated Orange Non Cola Brand Shares (2012) Mirinda Fanta Gold Spot Carbonated Lemon Non Cola Brand Shares (2012) Sprite 7UP Limca Nagpur Soft Drink Market Share by Volume (2012) The Coca-Cola Co Campa Beverages Pvt Ltd PepsiCo Source: Tier2RetailResearch India estimates (October 2012) Nagpur Soft Drink Market Outlook 2012 Market Trends & Growth Drivers Market shifting towards metal tin based packaging cans attributed to improved younger generation based consumption in past 2-3 years: In 2012, metal tin packaging accounted for (2007: of total Nagpur soft drink volume sales. This shift in market dynamics is predominantly attributed to younger generation accounting for 60% of local volume sales in 2012. Metal can is still expensive thus hampering strong volume sales in Tier II cities such as Nagpur. Improved per capita household disposable income in near future will witness the segment to account for in 2015. Traditional print still dominates Nagpur soft drink media spending: In 2012, traditional print (i.e. [...]
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