Ice Cream Market - India - Sample

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Ice Cream Market - India December 2008

description

The ice cream market in India has seen steady growth in the past several years. The overview gives data on size and growth as well as key market characteristics such as geographic distribution, approximate profit margins, and the highest selling products. Due to low consumption levels in India, the industry offers strong growth prospects by increasing either per capita consumption or penetration. An increasing focus on institutional sales is also growing the market. The industry faces challenges from the unorganized sector while issues with cold chain infrastructure are being addressed through different measures. The report identifies key trends in television and print media advertising, new product categories, partnerships, and raw material costs. The competitive landscape identifies the major players in the market, their share of the organized market, and the size of the unorganized sector.

Transcript of Ice Cream Market - India - Sample

Page 1: Ice Cream Market - India - Sample

Ice Cream Market - India

December 2008

Page 2: Ice Cream Market - India - Sample

2ICE CREAM MARKET – INDIA.PPT

SAMPLE

Executive Summary

�Drivers: Opportunity to capitalize on low consumption levels; growing institutional sales

�Challenges: Competition with the unorganised sector on price and quality, and lack of well-

developed cold chain facilities

Market

Drivers &

Challenges

Trends

Competition

� Large investments in advertising

�Diversification of product portfolio targeting specific consumer segments

�Partnerships and franchises pursued to boost distribution

�Falling costs of raw materials offsetting rising milk and sugar prices

�A brand is the market leader

�B and C brand are other strong players

�The premium segment is dominated by U

�Estimated worth USD XX mn in 2008, expected to grow to USD YY mn in 2009

�North and west account for a% of total sales

�High profit margins ranging between b-c%

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•Market Overview

•Drivers & Challenges

•Trends

•Competition

•Key Developments

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The industry is growing steadily with the northern and western

regions accounting for the largest consumption

•Size and Growth

�Worth USD XX mn in 2008

�Growing at a% p.a. in 2005-2008

�Forecast to increase by b% to reach USD YY

mn in 2009

•Characteristics

�Northern and western regions together

account for c% of total market consumption

�Profit margins range from u% to v%

depending on the product segment

�w% of ice cream sales occur during the

summer months of April-June

� x% of sales is through street vendors

�Vanilla is the highest selling flavour and

together with strawberry and chocolate it

accounts for y% of the market

Overview Size and Growth

0

50

100

150

200

250

X

2005

Y

2006

Z

2007

U

2008 e

V

2009 f

a%

USD mn

c%

South

d%West

a%

North

b%East

Source:

Geographic Distribution

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Drivers & Challenges

Developing institutional channel

Low consumption levels

Drivers

Lack of cold chain facilities

Low quality products and

competitive pricing from unorganized

sector

Challenges

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Key Trends

Franchises and strategic

partnerships to enhance

distribution

Benefits derived from falling

costs

Product diversification to target

specific segmentsLarge scale advertising

Trends

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X is the market leader with strong competition from U,V and W

•Fiercely competitive due to attractive

economics with profit margins ranging

between a-b%

•Organized sector comprises X, Y, Z and a

number of regional brands

•Amul is the market leader and is at the

forefront of targeting the rural market

•For most national players viz. U, V and W,

revenue from ice cream accounts for a

small portion of their total revenues

•Premium segment:

�X is the single largest premium ice cream

brand

�New entrants include X,Y and Z

Major Players Market share

Source:

A well established unorganized sector creates a fiercely competitive environment for

the larger players

A well established unorganized sector creates a fiercely competitive environment for

the larger players

f%Company Z a%

Company U

b% Company V

c%

Company Wd%

Company X

e%

Company Y

v%Organized

u%Unorganized

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8ICE CREAM MARKET – INDIA.PPT

Thank you for the attention

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The Ice Cream Market report is a part of Research on India’s Food & Beverage Industry Series.

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Gaurav Kumar

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Gagan Uppal

Phone: +91 22 4098 7530

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