MBA Aspirants are expected to know markets of established Brands. This helps them to understand industry for which they are dreaming to join in future. Today, you will read on Mineral Water market in India
The mineral water industry is one of the most thriving sectors in India because the water that comes out of the taps is undrinkable. Hence, people rely on either purified water, through reverse osmosis, or bottled water, also known as mineral water.
The mineral water market is growing at the rate of 40 percent annually and is estimated at Rs 8,000 crores. Experts claim that the mineral water market can touch Rs 15,000 crores by the end of 2015.
According to the Bureau of Indian Standards (BIS), there are approximately 1,200 bottling plants and 200 brands of packaged drinking water across the country. Out of these 200 brands, 80% of them are local.
A number of popular brands in India are Bisleri, Kingfisher, McDowell’s No. 1, Aquafina, Bailley and Kinley. Among these brands, Bisleri has captured the majority of the market share, and it stands at 36%. Coca Cola’s Kinley is next in line with a 35% market share.
This is followed by Aquafina, at 15%. Other smaller brands that do not have a major market share in the mineral water sector are Parle Agro’s Bailley, Kingfisher and McDowell’s No. 1.
The domestic market is split between three groups of players. The first group comprises national brands with presence all over India and this group is worth Rs 4,000 crores. The next group comprises local brands manufactured by registered plants but restricted to certain regions in the country.
This group has a turnover of Rs 2,400 crores. Lastly, the unorganised local brands have a net worth of about Rs 1,600 crores.
Today, consumers purchase mineral water in 500-ml bottles, one-litre bottles, and bulk packs, with over five-litre capacity. Many people purchase 20-litre bottles for both commercial and home usage.
The market for mineral water is sure to grow because we all need water to survive. A human being consumes an average of 2-3 litres of water daily, and with the Indian population growing at 2-3% annually, we can expect the demand for mineral water to grow as well.
Today, we witness mineral water being sold in movie theatres, shopping malls, fitness centres and restaurants. There is an increase in the number of people having disposable income. So, we witness a number of people purchasing mineral water in commercial complexes instead of carrying bottled or filtered water from home.
Gone are the days when people, especially those from the middle class, would carry bottles of mineral water for long journeys. We have become westernised in some aspects and slowly, the culture of ‘use and throw’ has seeped into the Indian society. So, Indians who travel quite a bit simply purchase bottled water and discard the empty containers.
The only problem that arises from bottled or mineral water is the indiscriminate disposal of the bottles. Many people do not realise the environmental hazards attached to this act. So, to reduce the negative effects on the environment through indiscriminate disposal of bottles, the government can educate the public and encourage recycling. Apart from this drawback, the mineral water industry is all set to reign over India.