Drinks Industry Valued at $182 Billion in BRIC Countries
It is mostly assumed that youngsters tend to consumer soft drinks and as they mature there is a shift towards hot drinks. Also other pattern seen is that once youngsters reach a legal age to drink they consume alcoholic drinks. The growth rate is quite sluggish in the developed whereas the growth rate has been quite fast in the developing countries and many beverage operators are making use of this opportunity. In spite of the fact that rate of growth has not been quite impressive in the developed countries the level of income allows the citizens to be able to afford more for their drinks. The level of profit margin is quite low in BRIC countries as compared to the other countries but the future looks positive.
In India the non alcoholic drinks market is expected to grow at a CAGR of 15% in the coming years with the highest growth being witnessed in the vegetable and fruit juice sector that is expected to grow by 29% followed by energy drinks at 28%
In Brazil the carbonated drinks have witnessed a bump in the sales as more and more consumers are shifting their choice towards healthy drinks. The consumption pattern of Brazil is quite similar to the non BRIC countries.
In China the fruit and vegetable juice market is expected to be worth 150 billion yuan by the year 2014. Soft drinks production is higher is the eastern region than the west of China.
The beverage market in Russia is expected to grow at a CAGR of 7% by the year 2015. The hot drinks market is expected to witness a sluggish growth as the coffee market has reached the saturation point.
The combined value of the drinks industry in the BRIC countries stood at £114 billion with China expecting to earn the highest revenue by the year 2015. In the alcoholic drinks segment India has seen a fast pace growth with a CAGR of 18% though China currently leads this sector.
On a global scale Asia remains the main driver for the soft drinks industry mainly because of China and Russia wherein during the hot weather the demand growth has been high. Coco Cola has chosen to invest USD $3.02 billion in Brazil.
Marketers need to take into consideration the changing lifestyle pattern as consumer’s age not just in regards to marketing but also packaging. Marketing strategies must be updated with the latest consumer trends.