Put another way, the per person consumption of bottled water in India is quite low at around 3-4 litres a year in comparison to the global average of around 25 litres, according to industry estimates.
So, this summer, it’s no surprise that companies want to plug this gap as fast as possible. Most of the action seems to be taking place in the packaging department. For instance, PepsiCo India’s Aquafina, which has about 16-18% share in the Indian bottled water market, is test-marketing a 30cl pack.
“It’s a penetration driving pack and it’s priced at five rupees,” said PepsiCo India executive director marketing, Punita Lal. In other words, this pack would be pitched against the 25cl local pouches of packaged drinking water that are usually priced at one or two rupees. “It’s a big opportunity,” he said.
Another company that sees a big opportunity in packaging is Coca-Cola India. Kinley, the cola giant’s packaged water brand, has introduced a new ‘easy to hold’ bottle.
“The new packaging innovation is designed based on consumer needs to offer a more convenient grip,” said a Coca-Cola India spokesperson. But Ramesh Chauhan, the chairman of Bisleri International, which is the largest player in this category, feels that the fight is elsewhere. “Bulk packs or the 20-litre packs are the new darlings in this segment,” he said.
“This category is growing very fast, at around 35% year on year, in comparison to 20% growth for the overall bottled water industry,” he added. “The demand is not seasonal for bulk packs and loyalty of the consumer is also very high.”
And according to Chauhan, in markets such as Delhi and Mumbai, bulk packs now contribute around 60% and 50% respectively to Bisleri’s overall sales. However, industry estimates suggest that around 70-80% of the market is unorganised, and there are more than 1,500 manufacturers vying for a share of the pie.
Between 1999 and 2004, the Indian bottled water market grew at a compound annual growth rate of around 24%, according to industry estimates. And today, the growth rate swings between 20% and 25%.
Other reports suggest that in 2004, Indians drank almost three times as much bottled water as they did in 1999. Data from Indiastat.com suggests that, in 2004, the total domestic consumption was about five billion litres compared with the global consumption of 200 litres. Also, India is arguably among the top 10 consumers of bottled water in the world.
Source: The Economic Times
© FoodBev Media Ltd 2024