Tableware market analysis in India
The relevance of research
The tableware market in India, according to its participants, remains one of the most difficult in terms of transparency of the processes taking place on it. This is due to the fact that there is no strict scheme of relations between partners and competitors on the market, implicit forms of cooperation and competition prevail. This picture has been observed for a long time and is currently becoming more complicated due to the unfavorable general economic situation in the country and the world.
Purpose of the study
Analysis of the state of the tableware market, assessment of the market volume, analysis of competitors, as well as identification of factors affecting the tableware market.
Content
Chapter 1. Overview of the tableware market in India
1.1 Product description
1.2 Main characteristics of the market
1.3. Volume of production
1.4. Share of exports in production
1.5. Market share of imports
1.6. Dynamics of market volume 2015-2019 Potential market capacity
1.7. Current trends and development prospects of the studied market
1.8. Assessment of factors affecting the market
1.8.1. Social factors
1.8.2. Technological factors
1.8.3. Economic forces
1.8.4. Political factors
1.8.5. Conclusions about the influence of factors on the market
1.9. Market structure by types of utensils (cooking utensils, serving utensils, accessories, drinking utensils, food utensils, decor, storage containers, etc.) in India
1.10. Analysis of sectoral indicators of financial and economic activity
Chapter 2. Top 10 Competitor Analysis in India
2.1. The level of competition in the market
2.2. Major players in the market
2.3. Market shares of the largest competitors
2.4. Analysis of the product range
Chapter 3. Consumption Analysis
3.1. Market saturation
3.2. Key consumer trends in India
3.3. Largest consumers
Chapter 4. Analysis of the industry in a crisis
Chapter 5. Forecasts and conclusions
5.1. Barriers in the market
5.2. Market Growth Drivers
5.3. Market development forecast until 2024
5.4. Go-to-Market Recommendations
Research excerpt
Chapter 1 Market Overview of Tableware in India
1.1 Product description
Crockery is a generalized name for household items used for cooking, eating and storing food. All dishes can be divided into several categories.
According to the purpose, the dishes are divided into the following types:
- Kitchen utensils - designed for cooking. These are pots, frying pans, double boilers, kettles, baking dishes and other utensils used for cooking (stoveware). Also, kitchen utensils include items that are used outside the stove. This includes cooking appliances - ladles, slotted spoons, crushes, bowls, sieves, graters, mortars, colanders, cutting boards, ladles, rolling pins, hammers for beating meat, etc.
Additionally, dishes can be classified according to their purpose: for cooking, frying, stewing, baking, baking.
...
1.2 Main characteristics of the market
The tableware market in this study is understood as a set of enterprises that produce and sell tableware (glass, ceramic, metal, plastic, etc.), which form the market offer, the population and companies that show effective demand for these products, as well as the relationship that arises between sellers and tableware consumers within the geographic boundaries of India.
The players in the tableware market in India are:
- manufacturers of tableware in India, selling tableware both in their own retail outlets and through wholesale sales channels;
- ...
1.3. Volume of production
Let's analyze the volume of production of tableware in India in the context of the classification of goods according to the materials of manufacture (in the context of OKPD2 codes).
- Dishes made of glass, ceramics and porcelain
Throughout the study period, the production of glassware in India had a positive trend (except for the volume of production in 2017). The largest production growth was observed in 2015-2016, after which the dynamics changed to negative. In 2018-2019 production volumes increased again – at the level of …%. According to the results of January-October 2020, the production of glassware decreased by …% compared to the same period in 2019, which is most likely due to a decrease in demand and suspension of production during the COVID-19 pandemic in India.
Diagram 1. Dynamics of production of tableware and kitchenware made of glass in India, 2014-2019, January-October 2020, million pieces
The best years for ceramic tableware manufacturers in India in the study period were 2015-2016. – there was an increase in production (in 2015, the increase amounted to only …%, and in 2016 already …%). Starting from 2017, the dynamics of the production of ceramic tableware is negative - a decline in production within …% in 2017-2018, an even more significant drop in production in 2019-2020. at the level …%. An analysis of the dynamics shows that this segment of the production of tableware has experienced a significant drop in volumes over the past 4 years.
Diagram 2. Dynamics of the production of ceramic tableware and kitchenware in India, 2014-2019, January-October 2020, million pieces
A similar trend is observed in the porcelain tableware segment. This segment has experienced the most significant decline, since porcelain tableware is traditionally the most expensive compared to other materials, and the demand for it is most sensitive to a decrease in the income of the country's population. The decline in production volumes has been observed since 2016 (by ..% at the end of 2016) and continues to the present. This segment experienced the strongest drop in 2017, as well as in January-October 2020 (the decrease in production amounted to … and …%, respectively).
Diagram 3. Dynamics of the production of porcelain tableware and kitchenware in India, 2014-2019, January-October 2020, million pieces
1.4. Share of exports in production
Here is the dynamics of tableware exports from India in 2015-2020.
Throughout the analyzed period, the dynamics of exports of tableware from India is positive. The largest increase in exports was noted in 2018 - the figure amounted to … billion Rs. (growth by …% compared to the previous year). In 2019, the growth of tableware exports from India continued, but its pace slowed down – the increase in exports amounted to …%. According to the results of 9 months of 2020, despite the pandemic, there is also a positive trend in the export of tableware from India (growth by …%).
...
In 2017-2020 the share of exports in the production of tableware in India was at the level of …%. From 2017 to 2019, the share of exports in production increased annually and reached …% by the end of 2019. At the end of 9 months of 2020, this share remained unchanged, slightly increasing to …%.
Chart 9. Dynamics of the share of exports of tableware in production (India - all countries of the world), 2017-2019, January - September 2020,%
1.5. Market share of imports
Let's analyze the dynamics of tableware imports in India in 2015-2020.
From 2015 to 2018, there was a positive trend in tableware imports to India. The largest increase in imports in value terms occurred in 2017 – by …% compared to the previous year. In 2018, the trend continued – the increase in imports amounted to …% compared to 2017. However, already in 2019, the growth in the indicator of imports of tableware in India stopped – at the end of the year, there was a decrease in the indicator by …%.
Chart 11. Dynamics of tableware imports in India, 2015-2019, January-September 2020, billion Rs.
The share of imports in the tableware market in India currently exceeds …%. An analysis of the indicator in dynamics indicates an increase in the share of imports in the market (in monetary terms) – annually in the period from 2018 to 2020, the share of imports increased by …%. However, the most significant increase was observed in 2017 – the share of imports increased from …% to …%. This was driven by an increase in imports in 2017, which was accompanied by a depreciation of the dollar against the rupee and an increase in the attractiveness of imported tableware in the market.
...
Traditionally, the largest share of imports is present in the volume of supply of porcelain tableware in the Indian market (up to …% of the volume in this segment). Also significant are the shares of imports of ceramic (about …%) and glassware (about …%). The smallest share of imports is noted in the segment of plastic tableware (…%), which is associated with the developed and relatively cheap production of such dishes within the country.
1.6. Dynamics of market volume 2015-2019 Potential market capacity
Consider the dynamics of the volume of the tableware market in India in 2017-2019. According to GidMarket's calculations based on … data, the market volume in 2015 amounted to … billion Rs. In 2016, the market volume increased by …% and amounted to … billion Rs. Then in 2017-2018. there has been a significant increase in the size of the tableware market in India. The increase in volume in 2017 amounted to …% to the level of … billion Rs., which was mainly due to the growth of import supplies of tableware in India at the end of the year. In 2018, the market continued to grow – the increase amounted to …% to the level of … billion Rs. This was caused by an increase in domestic production of tableware by …%, on the one hand, and an increase in imports by …% in monetary terms, on the other.
Diagram 13. Dynamics of the market volume of tableware in India in 2017-2019, January-September 2020, billion Rs.
Throughout the analyzed period, there has been uneven dynamics in the market with a decrease in volumes by 2019. The driver of the increase in market volume in 2017-2018. was, on the one hand, an increase in demand for dishes, caused by a barely noticeable increase in the income of Indians, on the other hand, there was a significant increase in imports of dishes in these years, due to the establishment of more attractive prices for imported products, caused by the depreciation of the dollar against the rupee. In addition, in 2017-2018 there was also an increase in the production of tableware in India. Thus, for participants in the tableware market in India in 2017-2018. were the most dynamic in terms of distribution development, market growth and sales growth.
...
Taking into account the given data, the potential capacity of the market of tableware in the country is about ... per year.
1.7. Current trends and development prospects of the studied market
Key trends in the tableware market in India include:
- To date, the Indian tableware market in India has been formed. Market experts believe that noticeable changes in the tableware market in the near future will mainly be associated with the rotation of the assortment and the redistribution of the forces of large players in it. In general, the situation on the market at the moment can be characterized by the following phenomena: stagnation of consumer spending, dominance of price competition, totality of shares, migration of buyers from real stores to virtual ones, displacement of traditional brands by private brands, growth in the production of tableware in India in certain segments.
- ...
The prospects for the tableware market in India are:
- Due to a decrease in the income of the population in 2020, sales figures in this market will be lower than a year earlier. In this case, there will be some redistribution of demand between market segments. This is due, on the one hand, to the narrowing of the purchasing power of the population, and on the other hand, to a change in the population's approach to consumption and cooking as a result of quarantine restrictions in the country.
- ...
1.8. Assessment of factors affecting the market
1.8.1. Social factors
- Population of India
The increase in the population of the country forms the current and potential level of demand for goods and services.
In the period from 2009-2018. the population growth rate in India is quite uniform, but extremely insignificant – …% per year (with the exception of a significant increase in 2014, the year Crimea was annexed to India). Since 2017, the growth rate of the total population of India has been declining, which is a negative factor for the development of markets with a large target audience (such as the tableware market). As of January 01.01.2020, 2019, the total population of India amounted to … million people, which is …% lower than the value of the indicator in .
...
- Unemployment rate in India
One of the most important social factors influencing the level of effective demand in the country is the level of unemployment among the able-bodied population.
A significant increase in unemployment in 2009 (by …%), caused by the financial and economic crisis of 2008-2009, in subsequent years was replaced by a gradual decrease in the indicator from …% to …% in 2012.
...
1.8.2. Technological factors
- Manufacture of dishes from new materials
The world is actively developing the production of tableware from new materials that meet modern requirements, primarily environmental ones. India is still among the lagging countries in this direction of development, but at the same time, new production of dishes from more modern materials is being organized in our country.
...
1.8.3. Economic forces
- GDP level in India
The dynamics of India's GDP determines the vector of development of the country's economy as a whole and to a large extent affects the development trends of industries and markets in the country. The GDP growth rate has an impact on the level of effective demand of the population.
...
1.8.4. Political factors
- Ban on plastic utensils
Refusal to use the production of disposable plastic packaging and utensils has been discussed in the country and the world for several years. 2020 was supposed to be the year that new restrictions on the use of plastic in the production of tableware came into force around the world. India was also on the verge of introducing restrictions on the use of single-use plastic - this measure was actively discussed in the State Duma, the Ministry of Natural Resources and the Ministry of Industry and Trade.
...
1.8.5. Conclusions about the influence of factors on the market
Let's conduct a STEP analysis of the factors influencing the tableware market in India.
Table 1. STEP analysis of factors influencing the tableware market in India
1.9. Market structure by types of utensils (cooking utensils, serving utensils, accessories, drinking utensils, food utensils, decor, storage containers, etc.) in India
Let us characterize the structure of the tableware market in India according to the purpose of use and the material of manufacture.
In the structure of the cookware market, depending on the purpose of use, the share of cookware (cooking utensils: pots, pans, etc.) accounts for …% of sales. The second place in terms of market share is occupied by drinking utensils (glasses, glasses, goblets, etc.), which account for about …%. Serving ware made of porcelain, ceramics and glass occupies …% in the market structure. The share of plastic and disposable utensils (including storage utensils) accounts for about …%. Cutlery and accessories account for the smallest share of the tableware market – …% and …% of the market, respectively.
...
1.10 Analysis of sectoral indicators of financial and economic activity
Let's analyze the main financial ratios that characterize the efficiency of economic activity of companies manufacturing tableware in India (the analysis presents the average values of indicators for the studied field of activity).
...
Chapter 2. Top 10 Competitor Analysis in India
2.1. The level of competition in the market
The tableware market in India is characterized by a low level of concentration (a large number of companies with insignificant market shares, the Herfindahl-Hirschman index is HHI = 141, 0 < HHI < 1000 - a low-concentration market).
...
The largest players in the tableware market in India are such world-famous companies as: ARC France (France), Pasabahce (Turkey), IKEA OF SWEDEN (Sweden). The first two companies have their own factories for the production of tableware in India, which, in terms of production, are significantly superior to other Indian manufacturers. IKEA OF SWEDEN is the largest supplier of imported tableware in India - in 2019, the volume of the company's products imported to India exceeded … billion Rs.
The total market share of the ten largest companies in 2019, according to GidMarket, was about …%. The rest of the market belongs to many medium and small companies - Indian manufacturers, as well as suppliers of imported products (mainly from China).
Let's analyze in more detail the TOP-10 players in the tableware market in India.
...
2.2. Major players in the market
ARC was founded in 1825 in northern France. By 2000, ARC has grown into a global corporation with manufacturing facilities on 5 continents, an extensive portfolio of prestigious brands and respected worldwide.
ARC has over 10 employees worldwide, including 5 in France.
...
The Pasabahce trademark (Pashabahche) has existed since 1935 and is one of the activities of the Turkish concern Sisecam, which is currently the world leader in the production of glass products. Pasabahce was the first Turkish tableware manufactory to introduce machine production in 1955.
...
2.3. Market shares of the largest competitors
The shares of other major tableware market players in India, which are in the TOP-10 market companies, are presented in Chart 30.
Other market operators account for …% of the tableware market in India. Other major market operators include such major tableware exporters in India as: Bormioli Rocco, VILLEROY&BOCH, as well as a number of Indian, Chinese and European manufacturers.
Chart 30. Shares of the largest players in the tableware market in India, 2019
According to GidMarket, in 2019, the total revenue of the largest competitors in the Indian tableware market amounted to about … billion Rs.
2.4. Analysis of the product range
Let's analyze the main assortment of the TOP-10 tableware manufacturers on the market in India.
List of diagrams
Diagram 1. Dynamics of production of tableware and kitchenware made of glass in India, 2014-2019, January-October 2020, million pieces
Diagram 2. Dynamics of the production of ceramic tableware and kitchenware in India, 2014-2019, January-October 2020, million pieces
Diagram 3. Dynamics of the production of porcelain tableware and kitchenware in India, 2014-2019, January-October 2020, million pieces
Chart 4. Dynamics of production of tableware and kitchen utensils from ferrous metals, copper and aluminum in India, 2014-2019, January-October 2020, million pieces
Chart 5. Dynamics of production of cutlery (including knives) and other similar items in India, 2014-2019, January-October 2020, million pieces
Chart 6. Dynamics of the production of tableware and kitchen utensils and other household items made of plastic in India, 2014-2019, January-October 2020, billion pieces
Diagram 7. Dynamics of tableware production in India, 2015-2019, January-September 2020, billion Rs.
Chart 8. Dynamics of export of tableware from India, 2015-2019, January-September 2020, billion Rs.
Chart 9. Dynamics of the share of exports of tableware in production (India - all countries of the world), 2017-2019, January - September 2020,%
Diagram 10. The structure of consumption of tableware produced in India, January-September 2020,%
Chart 11. Dynamics of tableware imports in India, 2015-2019, January-September 2020, billion Rs.
Diagram 12. Dynamics of the share of imports in the tableware market in India, 2015-2019, January-September 2020,%
Diagram 13. Dynamics of the market volume of tableware in India in 2017-2019, January-September 2020, billion Rs.
Diagram 14. Dynamics of the population of India in 2008-2020, million people
Chart 15. Dynamics of the unemployment rate in India, 2008-2019, January-October 2020,%
Chart 16. Dynamics of real money income of the population of India in 2008-2019, January-September 2020, % to the previous year
Chart 17. Dynamics of the Indian GDP index, 2007-2019, January-September 2020, in % to the previous period
Chart 18. Dynamics of the average official exchange rate of the US dollar against the rupee, 2007-2019, January-November 2020, Rs/USD
Diagram 19. Dynamics of shipment of tableware by Indian manufacturers, 2015-2019, January-September 2020
Chart 20. Dynamics of retail trade turnover in India, 2007-2019, January-November 2020
Diagram 21. Dynamics of the consumer price index for glass products, tableware and household utensils, in % of the previous period
Diagram 22. Tableware market structure by type, 2020, %
Diagram 23. Dynamics of the average profit (loss) from the sale of tableware in India, 2015-2019, million Rs.
Chart 24. Gross margin of tableware companies in India, 2015-2019, %
Diagram 25. Profitability before tax (profit of the reporting period) of companies for the production of tableware in India, 2015-2019, %
Chart 26. Current liquidity (total coverage) of tableware companies in India, 2015-2019, times
Chart 27. Absolute liquidity of tableware companies in India, 2015-2019, times
Chart 28. Business activity - average period of turnover of accounts receivable, tableware companies in India, 2015-2019, days
Chart 29. Financial strength (capacity of own working capital) of tableware companies in India, 2015-2019, %
Chart 30. Shares of the largest players in the tableware market in India, 2019
Chart 31. Market volume of tableware in India in 2018-2019, 2020-2024 forecast, billion Rs. (at current prices)
List of tables
Table 1. STEP analysis of factors influencing the tableware market in India
Table 2. Average profit (loss) from the sale of tableware in India, 2015-2019, million Rs.
Table 3. Major companies in the tableware market in India, 2019
Table 4. Basic information about the No. 1 participant in the tableware market in India
Table 5. Basic information about the No. 2 participant in the tableware market in India
Table 6. Basic information about the No. 3 participant in the tableware market in India
Table 7. Basic information about the No. 4 participant in the tableware market in India
Table 8. Basic information about the No. 5 participant in the tableware market in India
Table 9. Basic information about the No. 6 participant in the tableware market in India
Table 10. Basic information about the No. 7 participant in the tableware market in India
Table 11. Basic information about the No. 8 participant in the tableware market in India
Table 12. Basic information about the No. 9 participant in the tableware market in India
Table 13. Basic information about the No. 10 participant in the tableware market in India
Table 14. Product portfolio of the largest tableware market players in India, 2020
All reports