DPR (Detailed Project Report) on Beverages Industry

Executive Summary:

The beverage industry is one of the fastest-growing industries globally, with a

significant share of the global economy. The industry offers a wide range of products,
including alcoholic and non-alcoholic drinks. The global beverage market size is
expected to reach USD 1.9 trillion by 2025, growing at a CAGR of 3.1%. In this DPR,
we will analyze the feasibility of starting a new beverage company and evaluate its
potential for success.

Introduction:

The beverage industry is a vast sector, comprising various types of products. The
sector can be broadly classified into non-alcoholic and alcoholic beverages. Non-
alcoholic beverages include carbonated soft drinks, juices, energy drinks, and others.
Alcoholic beverages include beer, wine, spirits, and others. The demand for non-
alcoholic beverages is expected to grow at a higher rate than the alcoholic beverage
segment.

Market Analysis:

The global beverage market is expected to grow at a CAGR of 3.1% during the
forecast period (2020-2025). The market size was USD 1.5 trillion in 2019 and is
projected to reach USD 1.9 trillion by 2025. The market growth is attributed to the
increasing health awareness among consumers, which has led to a shift towards
healthier and low-sugar beverages.

In the non-alcoholic beverage segment, carbonated soft drinks account for the
highest market share, followed by juices and energy drinks. However, the demand for
carbonated soft drinks is declining, while the demand for functional and fortified
beverages is increasing. The energy drinks segment is expected to grow at the
highest CAGR during the forecast period.

In the alcoholic beverage segment, beer is the most consumed alcoholic beverage
globally. However, the demand for wine and spirits is expected to grow at a higher
rate during the forecast period. The craft beer segment is also gaining popularity,
especially in developed countries.

Project Cost and Funding:

The project cost for setting up a new beverage company will depend on various
factors, such as the type of beverage, production capacity, and marketing strategy.
However, we can estimate the project cost for a medium-sized company producing
non-alcoholic beverages with a production capacity of 10,000 liters per day.

The estimated project cost for a medium-sized company producing non-alcoholic

beverages with a production capacity of 10,000 liters per day is USD 2 million. The
project cost includes land, building, plant and machinery, raw materials, working
capital, marketing expenses, and contingency.

The project can be funded through a combination of debt and equity. The debt-
equity ratio can be 60:40. The equity can be raised from promoters, angel investors,
and venture capitalists, while the debt can be raised from banks and financial
institutions.

Marketing and Distribution:

Marketing and distribution are critical factors for the success of a new beverage
company. The marketing strategy should focus on creating brand awareness and
differentiating the product from competitors. The company can use various channels
such as social media, television, print media, and influencer marketing for promoting
the product.

The distribution strategy should ensure that the product reaches the target market
efficiently. The company can adopt a direct distribution model or a distribution
network through wholesalers, retailers, and distributors. The company should also
consider e-commerce channels for selling the product.

Conclusion:

The beverage industry is a highly competitive sector, but it offers immense

opportunities for growth and profitability. The market growth is driven by the
increasing health awareness among consumers, which has led to a shift towards
healthier and low-sugar beverages. The project cost for setting up a new beverage
company can vary depending on various factors, but the estimated cost for a
medium-sized company producing non-alcoholic beverages with a production
capacity of 10,000 liters per day