The Secret Behind Growing Non-alcoholic Beverages Market In India

The market is driven by rising GDP, per capita income and the surge in sales through e-commerce

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The Indian non-alcoholic beverages market is expected to reach $13.7 billion by 2027, growing at a CAGR of 8.10 per cent. The market is driven by rising GDP, per capita income and the surge in sales through e-commerce.

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"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," said a report.

This year, summer marched in early and after two consecutive washed out seasons, FMCG companies saw a hike in demand for non-alcoholic drinks. Summer drinks such as lassi, sharbats, juices, fruit and dairy-based drinks, among others saw a surge in demand. Parle Agro, one of India's leading beverage making companies, witnessed a volume growth during this time. "The company is looking at over 30-35 per cent volume growth for its beverage portfolio in calendar year 2022 over last year. We recently launched a campaign for Frooti after two years. The large-scale, creative branding for Frooti has generated considerable buzz and excitement among consumers across the country. For Appy Fizz and B Fizz, we have taken an aggressive distribution focussed approach leading to higher reach and growth," Nadia Chauhan, joint managing director and CMO, Parle agro told Entrepreneur India in a previous interview.

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. "Before we released our products, the only non-alcoholic beverage options were normal Coke and Pepsi, packaged juices and iced teas, but nothing as complicated as a nice cocktail. Taste is important, regardless of whether the drink is alcoholic or non-alcoholic," quoted Aneesh Bhasin, co-founder of Svami Drinks in the report. United Breweries, the manufacturer of Kingfisher beer, has also joined the league by launching non-alcoholic beverages.

Dabur India, Coca-Cola India, Hector Beverages, Parle Agro, among others are the major market players in the non-alcoholic beverages industry.