AVALON€¦ · AVALON Consulting Agenda 2 What are the opportunities in the meat industry emerging...
Transcript of AVALON€¦ · AVALON Consulting Agenda 2 What are the opportunities in the meat industry emerging...
AVALON Consulting
Trends and Opportunities in
Branding and Retailing of
Meat & Poultry Products
27 June 2014
2012 © Avalon Consulting. All Rights Reserved
AVALON Consulting
Agenda
2
What are the opportunities in
the meat industry emerging out
of consumer trends?
What would it take to
capitalize on these
opportunities?
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There are 4 key consumer trends driving the changes in the meat industry in India
3
3. Indulgence 4. Health
Consciousness
1. Affluence 2. Convenience
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Roadmap
4
3. Indulgence 4. Health
Consciousness
1. Affluence 2. Convenience
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The rise in India’s per capita income and the growth in the Indian middle- and upper-
class population are well known facts
5
Source: IMF World Economic Outlook, April 2012, HUL Investor Report, Avalon Consulting Research and Analysis
Per capita Income– India, Rs ‘000
131 96
46 124 3
11
2003 2013
Affluent
Aspirers
Strivers
Changing pattern in Households
based on income , Mn units
181 231
38.0 40.7 44.3 46.5 47.3 48.5
2008 2009 2010 2011 2012 2013E
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With increase in income, India’s demand for meat is also likely to grow; the
long-term growth prospect is very attractive
6
0
20
40
60
80
100
120
- 10,000 20,000 30,000 40,000 50,000 60,000
Per
Cap
ita
Mea
t C
on
sum
ption
(K
g. pe
r A
nn
um
, 20
13
)
Per Capita Income (USD, PPP Basis at Current Income, 2013)
Per Capita meatconsumption
Linear (Per Capita meatconsumption )
United States
Canada
New Zealand
Israel
Australia
Paraguay
China Vietnam
Malaysia
Uruguay
Philippines
Thailand
Iran
Peru
Pakistan Indonesia
India
Bangladesh
Colombia
Haiti
Brazil
Sudan
Source: FAO, World Bank, Avalon Consulting Analysis
Per Capita Income vs. Per Capita Meat Consumption Across Key Countries
High potential for
growth of meat
consumption in
India as income
increases
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Apart from consumption growth, growing affluence will also lead to greater
demand for branded, packaged and value added meat
7
Unbranded Branded
Live Refrigerated
Primary Processed
Value Added
Impact of Increase in Income Levels on Meat Industry
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Roadmap
8
• Increasing demand
for meat
• Shift towards
branded, packaged
and value added
products
3. Indulgence 4. Health
Consciousness
1. Affluence 2. Convenience
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The consumer today seeks convenience in transactions and product usage owing to
demographic and lifestyle changes
9
Nuclear Families Working couples
Change in Lifestyle Longer Commute
Convenience in Transactions
• Growth in Organized Retail
• Growth in E-commerce
Convenience in Product Usage
• Growth in convenience foods
What are they seeking?
Why are Consumers Seeking Convenience and in What Way
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Penetration of organised retailing in India is opening up new opportunities for
the meat industry
FY 01
FY 12
FY 21(F)
120
USD Bn
490
USD Bn
810
USD Bn
4% 7%
20% Share of
organised
retail
Estimated
retail market
opportunity
Historical and Forecasted Penetration Of Organized Retail
Source: Euromonitor, Avalon Consulting, Research and Analysis
Shop-in-shop
Exclusive Meat & Meat
Products Retail Stores
White Label Production
Branded and Packaged
Meat Products
Opportunities for Meat
Industry Participants
Category Management
Service
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A growing local e-retail industry is likely to open up various forms of online
retail models for branded meat products
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2.1 3.2 4.9 7.6
12.0
19.2
2013 2014 2015 2016 2017 2018
Online Retail Market in India, USD Bn
Source: TechNavio Analysis, Cisco, IAMAI, Avalon Consulting Research and Analysis
Online grocery stores can be new channels for
sale of meat products…
1.5 2.0 2.8 4.4
7.5
12.6
18.0
24.0
30.0
2002 2004 2006 2008 2010 2012 2014 2016 2018
No. of Internet users in India per 100 citizens
Dedicated online meat stores is also an option to
explore…
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Non-veg convenience foods are highly under-penetrated in India today, and
offer a high potential for growth
12
Source: Edelweiss Securities Avalon Consulting Research and Analysis
13%
18%
20%
13%
17%
20%
25%
28%
28%
Biscuit
Salty Snacks
Chips
Pickles
Noodles
Ready to Eat
BreakfastCereals
Pasta
Ready to Cook
Meal Substitutes / Accompaniments
2012-22 Projected Growth Rates of Key Convenience
Food Segments
Snacks
Non-vegetarian convenience foods has
high potential for growth as the current
penetration levels is very low
Pickles Snacks
RTCs/RTEs
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Roadmap
13
• Increasing demand
for meat
• Shift towards
branded, packaged
and value added
products
3. Indulgence 4. Health
Consciousness
1. Affluence 2. Convenience
• Organised Retail
• E-commerce
• Convenience Foods
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Consumer indulgence is will lead to opportunities for “premiumisation”
through differentiated product offerings
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Source: OC&C Strategy
Value products –
no flavour or
type choice
Premium, ‘Taste
the Difference’ –
significant
flavour range
Standard range,
limited choice of
type or flavour
A fully stocked pork shelf in London
Pri
ce
Demand for value added
products will rise as a
result of customer
indulgence. The Indian
FMCG industry is already
witnessing this trend
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Roadmap
15
• Increasing demand
for meat
• Shift towards
branded, packaged
and value added
products
3. Indulgence 4. Health
Consciousness
1. Affluence 2. Convenience
• Organised Retail
• E-commerce
• Convenience Foods
• Premiumization &
demand for
differentiated
products
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Various product offerings are possible to meet the needs of the health
consciousness
16
Quail
Low Cholesterol Egg and Meat have been introduced in India
Organic products have also been introduced and are likely to grow
Free Range as a positioning is
yet to catch on in India
“Locally produced” as a health
platform is yet to be tapped
Impact of Increase in Income Levels on Meat Industry
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Summary of opportunities emerging from the consumer trends
17
• Increasing demand
for meat
• Shift towards
branded, packaged
and value added
products
3. Indulgence 4. Health
Consciousness
1. Affluence 2. Convenience
• Organised Retail
• E-commerce
• Convenience Foods
• Premiumization &
demand for
differentiated
products
• Low Cholesterol
• Organic
• Free Range
• “Made in India”
So, what does it take to capitalize
on these trends?
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Proactive innovation driven by understanding the underlying customer needs,
and delivered through a well-laid infrastructure set-up would be critical for
success in the branded meat segment
19
Insights
Inno-vation
Infra-structure
Important to be able
articulate customer
need in the form of a
product offering
To ensure consistent
delivery of the customer
value proposition
In product
and delivery
The 3 I’s of Success in Meat Products
Contact Us:
Naimish Dave, Executive Director | [email protected]
+91 99877 60350
Santosh Sreedhar, Vice President | [email protected]
+91 99625 77299
© Avalon Consulting. All Rights Reserved
© 2014 Avalon Consulting. All Rights Reserved
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