Cases

A Landscape and Market Study for a Global Packaging Company to Serve the Needs of the Beverage Industry in India

Challenge

The client, a leading global packaging company is looking at offering innovative and value added packaging solutions to the four product segments (Liquid milk, fruit based beverages, packaged drinking water and carbonated soft drinks (CSD)) of the beverage industry. The top management believes that entry into India will be driven either by partnering with or by acquiring a packaging material supplier/ s to the major brands. The client has been doing some ground work over the past 12 months, and has developed a hypothesis about potential opportunities in the Indian market.

The client turned to UC to have a detailed assessment across the four product segments on the following aspects:

  • Market size and structure – Key trends over the past five years and projection for the next five years
  • Value chain entities and packaging needs – Key decision makers, key criteria used when selecting a packaging product and supplier, key points in existing packaging solutions
  • Packaging supplier landscape – Industry characteristics, key players, alternative packaging formats that have been tried
  • Addressable market opportunity.

Our Approach 

To conduct a detailed assessment across the four product segments of the beverage industry, UC adopted the following approach:

  • Conducted interviews with industry participants (69 in total) and also leveraged a number of secondary sources to form our fact base and recommendations
  • Developed market models to estimate the market size of the product category and different packaging material involved in the beverage industry
  • Highlighted trends/ experimentation with new forms of primary packaging and unmet needs of the industry
  • Identified and sized the potential opportunities for the client, across packaging materials (resin and paper based, primary and secondary medium, caps and closures) and end user segments, and defined the priority based on addressability
  • Profiled the key suppliers of packaging materials, as potential targets for inorganic entry in the Indian market.

Impact

The client received a clear understanding of the future market size (by value and volume), CAGR of sub-segments and the key drivers of the beverage industry. UC also proved/ disproved the client hypothesis about potential opportunities, by providing perspectives on the practices followed by industry participants and the ground realities of the business.