Strict government regulations related to production, marketing and sales of cider products are limiting the expansion of the global cider market. Many countries have stringent norms regarding the amount of alcohol content allowed in cider beverages. For example, in India the alcohol content in cider cannot exceed 7.5% by volume. This low cap makes it difficult for cider makers to experiment with different fruit ingredients and flavors which impacts product innovation. Similarly, countries like China and Mexico have alcohol limits in the range of 5-6% that disincentivises new product development.
Market Opportunities: Untapped rural markets
Untapped rural markets in developing nations present a great opportunity for growth in the global cider market. With large agricultural populations and a growing middle class with rising disposable incomes, rural consumers in these regions are increasingly experimenting with new beverages. However, most commercial cider brands have traditionally focused their marketing and distribution efforts only within urban areas. There is now a unique chance for cider companies to enter new rural geographies and capture an emerging customer base. These consumers have traditionally consumed locally brewed alcoholic drinks. However, health awareness is increasing in villages and people are looking for commercially packaged beverage options with clearer quality standards and assurance. Cider's light taste makes it appeal to those shifting from heavy drinks. Its packaging in bottles or cartons also gives it an advantage over products sold in loose formats.
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