India Non-Alcoholic Beverages Market Outlook, 2027-28

In India, the non-alcoholic beverage market is mainly driven by increasing demand for non-fizzy drinks, rising GDP and per capita income, the surge in sales through e-commerce, etc. Moreover, substantial marketing activities by various brands and significant endorsements by film stars are some of the key reasons behind the growth. Furthermore, changing consumer tastes and preferences in food and beverages have led to an increase in the consumption of non-alcoholic beverages. India has the potential to become a non-alcoholic beverage hub, given its endowments of raw materials, labour and policy support for encouraging food processing in the country. In India, domestic consumption and exports are low, compared to ASEAN (Association of Southeast Asian Nations) countries and there is enough space to grow for the non-alcoholic beverage industry. There is scope for increasing both domestic sales volume and diversifying products and export markets. For example, India can develop and export organic fruit-based drinks.

According to the research report India Packaged Non-Alcoholic Beverages Market Outlook, 2027-28 the market holds huge potential because of its low per capita consumption compared with that of global peers. The packaged 100% fruit juice market’s CAGR is estimated at around 20% by the forecast period. The carbonated soft drinks market has around a 50% margin, which is very high compared to the packaged water segment's 10% margin. However, the market for packaged water is five to six times bigger. The packaged bottle water market is unorganised with around 80% market share and is leading the market. A number of companies selling fake branded water bottles have appeared on the market. These players do not maintain quality and hygiene standards, which in turn leads to health issues among consumers. As a result, consumers lose faith in bottled water, thus affecting the overall sales.

In India, packaged beverages (drinks) are classified majorly into two categories: packaged non-alcohol beverages and packaged alcoholic beverages. The non-alcoholic beverages (no alcohol content) are further branched into carbonated beverages and non-carbonated beverages. Packaged carbonated beverages contain dissolved carbon dioxide (CO2). As the Prime Minister, Narendra Modi suggested mixing at least 2% fruit juice in aerated drinks in order to help distressed farmers find a new market for their produce. The carbonated beverages include carbonated soft drinks, energy drinks and sparkling water, while non-carbonated beverages include juice drinks, sports drinks, syrup/squash, milk-based drinks, bottled water, etc. Carbonated soft drinks are generally sweet in taste and are in high demand worldwide. The energy drinks contain caffeine in a measurable amount of around 145-150mg/lit, while sports drinks possess a large amount of electrolytes, vitamins, minerals (sodium, calcium, potassium, etc.) and protein too, with the carbohydrate in the form of sugar.

Juice drinks are made from the extraction or pressing of fruit and vegetables, with or without adding some additives and preservatives. The organised juice market is divided into three segments by the amount of fruit or vegetable content, i.e., fruit drinks, nectar juices, and 100%fruit juices. The fruit drinks contain 2-19% fruit content, while fruit juices have almost 100% fruit content. The nectars are the mediators, having a 21-90% content of fruit. To disinfect the water, packaged bottled water is produced through the processes of filtration, reverse osmosis (RO), UV, or ozone treatment. Packaged water is available in a variety of sizes on the market, including 250ml, 500ml, 1 lit, 2-5 lit packaging, and barrels (jars).The syrups/squashes are traditionally made of herbal extracts, fruit-flavoured or from fruit juice with preservatives, while modern syrups may also contain food colouring. The milk-based beverages category is popular, with two product types: flavoured milk beverages and fermented milk beverages (lassi, chaas/buttermilk).

India is an important market for numerous players looking to establish a strong beverage brand. Increased foreign investment and collaboration in India's food and beverages industry suggests a tremendous growth in items offered by both multinational and domestic enterprises. Many brands are offering non-alcoholic clones of popular alcoholic cocktails.

Bisleri is the market leader, followed by brands such as Kinley, Bailey, and Oxyrich, among others. The rise in the popularity of gyms, athletics, and sports has charmed the energy and sports drink markets among the youth. Red Bull and PepsiCo’s Gatorade are the market leaders in India with their respective markets. The flavoured milk market is gaining a remarkable market share because of its delicious taste and varied flavours. In India, lassi in Punjab and buttermilk in Gujarat are consumed on a daily basis, though fermented milk beverages haven’t penetrated noticeably in contrast to other countries. In India's juice market, the fruit drink segment is the dominating category with the highest consuming mango flavour. However, the 100% fruit juice market has tremendous growth potential in the future due to multiple health benefits. On the other hand, ready-to-mix (RTM) beverages are also consumed by the Indian population, mostly as welcome & functional drinks as syrups or squashes in various flavours.

Radiohead Brands, makers of Jimmy’s, a leading non-alcoholic mixers company recently forayed into a new category of mixers with the launch of Sparkling Beverages in three variants - Tonic Water, Ginger Ale, and Classic Lemonade. The new sparkling range will be introduced in 250 ml cans. With the launch of these new ready-to-drink and mix beverages, Jimmy’s is the only brand in India with a complete range of both carbonated and non-carbonated mixers. Dabur India, Coca-Cola India, Hector Beverages, Parle Agro, among others are the major market players in the non-alcoholic beverages industry in India.

The COVID-19 pandemic has impacted the non-alcoholic market as institutional buyers like HORECA (Hotels, Restaurants, and Cafes) were totally closed in the lockdown period. Due to this, the overall market is disturbed. However, the higher in-home consumption of carbonated soft drinks, driven by increasing access to refrigeration, has impacted less compared to the juice and packaged water segments. Companies and market advisers are attempting to achieve pre-Covid y-o-y growth through various market strategies.

Major Companies present in the market:

Pepsico India Holdings Private Limited, Varun Beverages Limited, Hindustan Coca-Cola Beverages Private Limited, ITC Limited, Parle Agro Private Limited, Rakyan Beverages Private Limited, Hector Beverages Private Limited, Red Bull India Private Limited, Dabur India Limited, Mapro Foods Private Limited, Mother Dairy Fruit and Vegetable Private Limited, Hershey India Private Limited, Rasna Private Limited, Monin India Private Limited, (AMUL) the Gujarat Co-operative Milk Marketing Federation, Nestlé India Limited, Muddy Puddle Foods Private Limited, MALA'S Fruit Products Private Limited, Haldiram Foods International Private Limited, Hamdard Laboratories, CavinKare Private Limited, RMD Food & Beverages Private Limited, Bisleri International Private Limited.

Considered in this report

• Geography: India
• Historical year: FY 2016-17
• Base year: FY 2021-22
• Estimated year: FY 2022-23
• Forecast year: FY 2027-28

Aspects covered in this report

• India Packaged Non-Alcoholic Beverages market with its value and forecast along with its segments
• Packaged Water market with its value and forecast along with its segments
• Energy drinks market with its value and forecast along with its segments
• Sport drinks market with its value and forecast along with its segments
• Juice drinks market with its value and forecast along with its segments
• Carbonated drinks market with its value and forecast along with its segments
• Syrups/squashes market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Regions covered in the report

• North India
• South India
• West India
• East India

By End User:

• Institutional (HORECA)
• Retail

By Sales Channel:

• Supermarkets/Hypermarkets
• Convenience Stores
• Online
• Others (Airports, Gas station, Cafes, Health shops)

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to India packaged non-Alcoholic beverages industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.