Indian Beverage Industry: Trends forecast 2019

The changing consumption pattern of Indians has a dominant effect on the increase in the growth of Indian Beverage sector

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By Siddharth Jain


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In recent years, the economic growth and the social change on the Indian subcontinent have contributed significantly to the growth of Indian beverage industry. If we look at the trend the rising segment of consumers who are often on-the-go, yet want to spend more time at home lead the way to the acceptance for healthy, "speed scratch' solutions and quick premium convenience products.

This acceptance led to the influx of many ready-to-consume products that became more fitting into more areas of people's lives than we could have ever imaged. And, this led to the remarkable success of Indian Beverage segment over the years.

In the wake of the Indian beverage market's incredible expansion, producers, suppliers and service providers from all segments of the industry are unceasingly seizing the opportunity to further establish themselves. However, today's modern Indian consumer is well travelled as well as well educated about various products in the market. They are sensible, smart and know what they want. So, gone are the days when you could be a brand and serve anything. Today, it's all about innovation, versatility, value and breaking away from traditional styles.

Here are Some of the Trends That are Expected to Play a Significant Role in the Indian Beverage Industry Landscape in 2019:

a). At the pace we are seeing technology transform consumer behaviour and expectations, we will see the rise of holistic health wherein modern urban consumers will have a more purposeful approach to healthy eating and a conscious assessment of the impact on their body of what you are eating. These trends mean consumers want "on-the-go' natural, functional and convenient products that offer more than high fat, high sugar and "empty calories'. This will offer great opportunities for companies who can harness food science and technology developments to deliver revolutionary products, which meet consumer needs.

b). As well known, there is no beverage on Earth that has the historical or cultural significance as tea, the most consumed beverage in the world after water. As per a recent Forbes report, the tea market is expected to grow annually by 20-23per cent and by 2020 is estimated to be three times the size in 2017. However, the Indian tea culture is going through a "cold wave" and is becoming more inclusive of speciality teas. What is working in favour of the iced tea is the health platform. The fact that iced tea is healthier than carbonated soft drinks, is higher on the cool quotient and provides a range of flavour options will see it gain a high preference over other cold beverages. Indulgent flavoured teas have the potential to fill a gap for those consumers who are looking to move away from sugary beverages or even alcohol.

c). For packaged food and beverages segment, rural India provides growth opportunities. Almost 70 per cent of the Indian population lives in rural regions. The rural population benefits from investments made in infrastructure and increasing wage rates. Since food processing companies are realizing the potential of rural India they will expand their presence in these areas by launching smaller pack sizes and at low price points to attract consumers.

The changing consumption pattern of Indians has a dominant effect on the increase in the growth of Indian Beverage sector. Convenience, sophistication and health are few factors, which are directly linked with the increased sales and thereby profits for the beverage industry in India.

Siddharth Jain
He was formerly an M&A banker with BNP Paribas in Singapore for over six years before coming back to India to launch his beverage venture. Siddharth has been an avid tea lover. Realising the need for healthier and natural beverage products, his passion for tea led him to develop and bring to market India's first real-brewed bottled ice tea brand Brewhouse. He is an alumnus of IIM Calcutta and Delhi University.

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