Private label juices set to soar in India: Mintel
New research from Mintel reveals the latest developments in the market – and the high level of potential for it in the future.
Packaged juice is a relatively new phenomenon, and its per capita consumption in the country is quite low. India’s retail juice market is dominated by branded products with the top three players – Coca-Cola, Pepsi and Parle Agro – accounting for 85% of the market. Within this category of juices, private labels have been quickly gaining acceptance among Indian consumers.
Ranjana Sundaresan, Food and Drink Analyst - India at Mintel, said: “Fruit juice consumption in India has seen incredible growth in the past few years, especially in urban and semi-urban areas. Until a few years ago, we had only a few branded players in the market. But now with more choice, Indian consumers have not only started to be brand conscious but also price and quality conscious. Private labels offer a combination of good quality and comparatively lower prices, which has increased consumer confidence in private labels. Given how popular private labels are in Western markets, there is clearly a lot of scope for growth in this sector in India."
Private label is still a nascent sector in India, partly because the organised retail market itself is small. Organised retail, with estimated sales of INR1,515 billion, accounted for only 7.2% of total retail sales in 2011
Now with the government’s nod to FDI in multi-brand retail, private label will likely receive a further boost when global retailers enter India. "Consumers can expect a wider choice of products, better value and lower prices due to the increase in competition." Ranjana adds.
Private label juices will also open up the category to lower income aspirational consumers who may not be able to afford branded packaged juices. And by sourcing their raw materials locally, retailers would be able to further bring down the price of private labels.
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India Infoline Research Team / 08:41, Oct 09, 2015
The Indian market too is expected to get off to a positive start. The Nifty looked geared to rally towards the 8300 mark but indices took a breather on Thursday.