Industry Profile: The global non-alcoholic beverage market was valued at USD 967.3 billion in 2016. The market is anticipated to grow at an estimated CAGR of 5.8% from 2017 to 2025, owing to factors such as rising disposable income, population growth, and changing lifestyles. Increasing concerns regarding obesity and health awareness are expected to trigger the development of functional beverage and bottled water product segments while simultaneously limiting the demand for carbonated drinks. Growing concern toward obesity and other health problems is reshaping the global non-alcoholic beverage industry. The need for functional beverages, such as relaxation drinks, energy drinks, and ready-to-drink coffees and teas, is gaining popularity owing to their low-calorie contents.
Growing consumption of energy drinks due to hectic schedules, urbanization, and rising health concerns are expected to drive market growth. According to the data published by the Department of Economic and Social Affairs, U.S., in 2012, approximately 1.5 million people were added to the urban population every week. As a result, roughly 60% of the global population will reside in urban areas by 2022, which is projected to drive industry growth. The growing population, disposable income, and the rising number of value-oriented savvy consumers are developing the overall industry. In addition, increasing consumption of takeaway products due to busy lifestyles and rapid urbanization is expanding the market. The Asia Pacific, followed by the Middle East & Africa, are anticipated to register significant growth over the forecast period owing to emerging economies, high disposable income, and various untapped markets.
Company profile: Tata Global Beverages Limited (formerly Tata Tea Limited) is an Indian multinational non-alcoholic beverages company. The company is a part of the Tata group. It is the world’s second-largest tea manufacturer and distributor and a major coffee producer. Tata Global Beverages markets tea under the notable brand’s Tata Tea, Tetley, Good Earth Teas, and JEMČA. Tata Tea is the biggest-selling tea brand in India, Tetley is the biggest-selling tea brand in Canada and the second-biggest-selling in the United Kingdom and the United States.
The company also ventures with Starbucks TO make ” Starbucks Coffee – A Tata Alliance” to sell coffee in India. With tea, 8oclock coffee is also one significant part of revenue. Tata Coffee is one subsidiary of the company which supplies the coffee beans. USA CANADA AND UK are essential for the company.
Shareholding Pattern: BSE Data
Financials and ratios : [table id=151 /]
Future prospectus Entry of tata group into FMCG when N Chandrashekhar is at the helm is one excellent sign. The move was expected, and even though the stock is nifty, it is worth investing in the company.