I came across an interesting question regarding estimating the market size of the alumnum foil industry in the US. I was completely stumped on how to approach it and was wondering if the community could offer their insight?
Market size of aluminum foil?
I agree with Vlad point on B2B, and you should definitely mention packaging as its consumption is much larger than uses for domestic purposes (not even sure if there’s any other b2b industry that consumes more!)
First of all, I would check whether it's a b2b or b2c market or both.
If b2c - agree with the previous one
If b2b, than = meals per person * % meals out of home * % meals with foil / ±3 portions prepared on a single foil * size of the one foil to cook / foils in one package
+ I would at least mention other potential b2b usages of foil, e.g. packaging
For B2B I would actually clarify with the interviewer if she is referring to food grade aluminium foil only or industrial aluminium foil in general. If the latter, then - assuming you are no expert in aluminium foil market - I would start a discussion to understand what the market segments (e.g. heat shielding, medicine packaging, etc) are and once that is cleared I would take the standard market sizing approach and size each one of these based on assumptions.
Hope it helps,
For consumer segment:
Pop us * 1/people per HH * % use aluminium foil * # foil packs per quarter * 4 quarters * usd per pack
then add another 25% extrapolating for businesses
Related BootCamp article(s)
Your client, large automotive OEM WyCar, has developed its first fully electric vehicle (EV) and introduced it as a pilot on the Austrian market last year. However, sales have been far below the expected numbers. The management has engaged you to support them in understanding the reasons and advise ... Open whole case
You have inherited the “Old Winery” from your grandfather, a winery which has been family owned for five generations and can be dated back to the 16th century. Half of the eleven hectares are used to grow white grapes, the other half to grow red grapes. They are grown in the conventional way, i.e ... Open whole case
Nutripremium is a very well-known premium nutrition food company in Europe (€1 billion revenue last year). It is based in Spain and has an excellent market share not only in its home country but also in Portugal, France, Italy and Germany. Nutripremium has two main lines of products: Vitam ... Open whole case
Beyer, one of the biggest pharmaceutical companies in the world, just invented a very reliable vaccine against Chickenpox, a disease that affects children in the age from 2 to 16 years. Beyer came to you wondering what their potential sales in Europe in the first year would be if they launched th ... Open whole case