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?

AVALON Consulting

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

AVALON Consulting

Roadmap

4


Consciousness


AVALON Consulting

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

AVALON Consulting

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

AVALON Consulting

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

AVALON Consulting

Roadmap

8

• Increasing demand

for meat

• Shift towards

branded, packaged

and value added

products


Consciousness


AVALON Consulting

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

AVALON Consulting

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

AVALON Consulting

A growing local e-retail industry is likely to open up various forms of online

retail models for branded meat products

11

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…

AVALON Consulting

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

AVALON Consulting

Roadmap

13


for meat

• Shift towards

branded, packaged

and value added

products


Consciousness


• Organised Retail

• E-commerce

• Convenience Foods

AVALON Consulting

Consumer indulgence is will lead to opportunities for “premiumisation”

through differentiated product offerings

14

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

AVALON Consulting

Roadmap

15


for meat

• Shift towards

branded, packaged

and value added

products


Consciousness



• E-commerce


• Premiumization &

demand for

differentiated

products

AVALON Consulting

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

AVALON Consulting

Summary of opportunities emerging from the consumer trends

17


for meat

• Shift towards

branded, packaged

and value added

products


Consciousness



• E-commerce


• Premiumization &

demand for

differentiated

products

• Low Cholesterol

• Organic

• Free Range

• “Made in India”

So, what does it take to capitalize

on these trends?

AVALON Consulting

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

© 2014 Avalon Consulting. All Rights Reserved

Agri

Business Auto

Chemicals

Healthcare

& Pharma

Education

Infrastructure

& Capital

Goods

Metals &

Mining

Consumer

Goods &

Services

Strategy

Corporate Strategy

Business Unit Strategy

Functional Strategy

Transformation

Strategy Articulation

Organisation Design and Alignment

Process Re-engineering

Change & Performance Management

Post Merger Integration

Transactions

Deal Origination

M&A Support

Value Enhancement

Exit Strategy

Service Capabilities Focus Sectors

AVALON Consulting

MUMBAI: +91 22 6619 1100 | DELHI: +91 11 4051 6600 | CHENNAI: +91 44 4345 5345 BANGALORE: +91 80 6771 0709 | SINGAPORE: +65 6593 0293

www.consultavalon.com

Ranked among Top 10 Strategy Firms in Asia by

Vault in 2013

An international management consulting firm

that offers a range of services across several

sectors in India, Middle East, South East Asia,

China and Europe Celebrating 25 Years

avalon€¦ · avalon consulting agenda 2 what are the opportunities in the meat industry emerging...

Documents