Forecast Period
|
2026-2030
|
Market Size (2024)
|
USD 14.95 Billion
|
CAGR (2025-2030)
|
7.36%
|
Fastest Growing Segment
|
Online
|
Largest Market
|
South
|
Market Size (2030)
|
USD 22.81 Billion
|
Market Overview
India Non-Alcoholic Beverage Market was
valued at USD 14.95 billion in 2024 and is
anticipated to grow USD 22.81 billion by 2030 with
a CAGR of 7.36% during forecast period. The India non-alcoholic beverage market
has witnessed significant growth in recent years, fueled by rising health
awareness, changing consumer lifestyles, and an increasing preference for
healthier beverage options. With a large and diverse population, India’s
non-alcoholic beverage market is characterized by a wide range of products,
including carbonated soft drinks, fruit juices, bottled water, energy drinks,
ready-to-drink (RTD) tea and coffee, and functional beverages.
The growing health-conscious population coupled with the increased
benefits associated with the consumption of herbal tea has increased the
production of tea which is likely to fuel its market growth in the future. As a
part of this, as of 2024, according to IBEF, India is the world's
second-largest producer of tea, which is being driven because of its strategic
market expansion, robust geographical indicators, significant investment in tea
processing facilities, ongoing innovation, and enhanced product mix. In 2022,
6.19 lakh hectares of land were under cultivation in India to produce tea.
Eighty percent of the tea produced in India is eaten domestically, making it
one of the world's top tea-drinking nations. In 2023–2024, India produced
1,382.03 million kg of tea, up from 1,374.97 million kg in 2022–2023.
Key Market Drivers
Health
and Wellness Consciousness
In recent years, there has been a noticeable shift in
consumer preferences towards healthier, low-calorie, and natural beverage
options. This health and wellness trend is a primary driver of the
non-alcoholic beverage market in India. With growing awareness about the
adverse effects of excessive sugar and artificial additives found in
traditional carbonated soft drinks, Indian consumers are increasingly opting
for beverages that offer functional health benefits.
Consumers are gravitating towards beverages like
bottled water, herbal teas, and low-sugar fruit juices as healthier
alternatives. Additionally, the popularity of functional beverages, including
energy drinks and beverages fortified with vitamins, minerals, and probiotics,
has been on the rise. The demand for low-calorie, sugar-free, and organic
drinks is also accelerating, fueled by concerns about obesity, diabetes, and
other health-related issues.
For example, products like coconut water, aloe vera
drinks, and fruit juices with no added sugar are gaining traction. Beverage
companies are innovating to cater to this health-conscious demand by offering
fortified drinks with added health benefits, such as immunity-boosting or
digestion-aiding ingredients. The rise of clean-label products, which are free
from artificial preservatives and sweeteners, is another factor contributing to
the growth of the healthy beverage segment.
Innovations
and Product Diversification
Product innovation and diversification have played a
pivotal role in the growth of the Indian non-alcoholic beverage market. As
consumer preferences become more sophisticated and varied, beverage
manufacturers are continuously introducing new products to cater to these
diverse demands. These innovations span across various categories such as
functional drinks, ready-to-drink beverages, and healthier alternatives.
For instance, the growing popularity of functional
beverages is driving innovations in the form of drinks that offer benefits like
improved digestion, enhanced immunity, and better hydration. Additionally, RTD
beverages, such as cold coffee and iced tea, are gaining popularity as
convenient, on-the-go options for consumers.
The juice segment has also evolved, with many brands
offering fresh, natural, and preservative-free fruit juices. New flavors and
blends, such as superfruit juices and blends with added health benefits, have
emerged to appeal to health-conscious consumers. Carbonated soft drink
companies are also diversifying their portfolios by launching low-calorie or
sugar-free versions of their popular drinks to meet the demand for healthier
options.
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Key Market Challenges
Rising
Health Concerns and Changing Consumer Preferences
While health-consciousness is a driving force in the
market, it also presents a challenge for beverage companies. Indian consumers
are becoming increasingly aware of the negative health impacts associated with
high sugar intake, artificial ingredients, and preservatives commonly found in
traditional carbonated soft drinks. This shift in consumer preference is
forcing beverage manufacturers to re-evaluate their product offerings and
innovate to meet demand for healthier alternatives.
The growing concern over rising rates of obesity,
diabetes, and other lifestyle diseases has led consumers to seek out healthier,
more natural options. The demand for low-calorie, sugar-free, organic, and
functional beverages has risen significantly. However, producing such beverages
involves overcoming technical challenges, including the need to formulate
products without compromising on taste or shelf-life.
Furthermore, the demand for clean-label products—those
with minimal ingredients and no artificial additives—adds complexity to
production processes. Companies must invest in sourcing high-quality
ingredients and developing new formulations to cater to the demand for
healthier products while maintaining their profit margins.
Supply
Chain and Distribution Challenges
Logistics and distribution remain significant
challenges for the non-alcoholic beverage market in India. The country’s vast
geography, combined with varying infrastructure levels in rural and urban
regions, makes efficient distribution of beverages difficult. Ensuring timely
and cost-effective delivery of beverages, especially those with a short shelf
life like fruit juices and dairy-based drinks, can be a logistical nightmare.
The variability in infrastructure between different
states and regions adds another layer of complexity. While major cities like
Mumbai, Delhi, and Bengaluru have robust infrastructure and established
distribution channels, rural and remote areas still face challenges in terms of
road connectivity, cold storage facilities, and transportation systems. This
lack of infrastructure in rural regions limits the availability of products in
these areas and prevents beverage companies from tapping into the full potential
of the market.
Additionally, managing a cold supply chain—necessary
for products like bottled water, chilled beverages, and certain functional
drinks—can be expensive. For companies that operate across diverse geographic
locations, ensuring that their beverages are stored and transported under the
right conditions requires significant investment in refrigerated storage and
specialized transportation.
Key Market Trends
Rising
Consumer Demand for Convenience and Accessibility
The demand for convenience is another important driver
of the non-alcoholic beverage market in India. As the urban population becomes
busier with work and daily activities, ready-to-drink beverages offer the
perfect solution to meet consumers' need for convenience. Packaged drinks,
which require little to no preparation and can be consumed on the go, have
gained immense popularity in urban and semi-urban areas.
Retail channels such as supermarkets, hypermarkets,
and convenience stores are increasingly offering a wide range of non-alcoholic
beverages to cater to this demand for convenience. E-commerce platforms have
also played a significant role in making non-alcoholic beverages more
accessible to a broader audience. With the growth of online grocery shopping
and food delivery services, consumers can now easily purchase their favorite
beverages from the comfort of their homes, further boosting market demand.
The rise of convenience is also linked to the
increasing popularity of single-serve and portable beverage formats. Bottled
water, energy drinks, soft drinks, and fruit juices in smaller, portable
packaging are especially favored by consumers who need quick, ready-to-consume
options during their daily routines. Additionally, the trend of offering
beverages in environmentally friendly packaging, such as recyclable bottles or
biodegradable cartons, is resonating with increasingly eco-conscious consumers.
Premiumization
of Beverages
As India's middle class grows and disposable incomes
rise, consumers are increasingly willing to pay a premium for high-quality,
gourmet, and unique beverages. This trend of “premiumization” is gaining
momentum, particularly in urban centers, where consumers are seeking
differentiated products that cater to their evolving tastes.
The premium segment of the non-alcoholic beverage
market includes high-end juices, specialty coffees, organic teas, and craft
sodas. For example, cold-pressed juices, often marketed for their nutritional
value and fresh taste, are popular among urban consumers. Similarly, premium
bottled water, including mineral water and artisanal water sourced from remote
regions, is gaining traction as consumers shift from generic packaged water to
more exclusive options.
In addition to beverages that emphasize quality
ingredients, premiumization is also driving demand for aesthetically pleasing
packaging. Many high-end beverage brands are opting for glass bottles, unique
labeling, and premium packaging to create a luxury experience for consumers.
This trend is reflective of broader global patterns in consumer behavior, where
the experience of consuming the product is as important as the product itself.
The premiumization trend is also evident in the
growing popularity of ready-to-drink (RTD) beverages. With a rising demand for
gourmet iced coffees, premium teas, and cold brews, the RTD segment is
increasingly catering to urban professionals who seek convenient, yet
high-quality, beverage options.
Segmental Insights
Packaging
Type Insights
The bottled segment is the dominant
category in the India non-alcoholic beverage market, driven by its convenience,
portability, and widespread availability. Packaged beverages such as bottled
water, carbonated drinks, fruit juices, and ready-to-drink (RTD) teas and
coffees are highly popular among Indian consumers. Bottled water, in
particular, has seen significant growth due to rising concerns about water
quality and the need for on-the-go hydration. Additionally, the increasing
demand for healthier beverages has led to a rise in bottled fruit juices and
functional drinks. The robust distribution networks, including supermarkets,
convenience stores, and e-commerce platforms, further boost the accessibility
and consumption of bottled beverages, solidifying this segment as the leading
category in the market.
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Regional Insights
The South region of India is the
dominant player in the non-alcoholic beverage market, driven by a combination
of factors such as higher disposable incomes, urbanization, and a strong demand
for diverse beverage options. States like Tamil Nadu, Karnataka, Andhra
Pradesh, and Kerala contribute significantly to the consumption of both
traditional and modern beverages, including packaged water, fruit juices, and
health-focused drinks. The region has a large urban population with a
preference for premium and health-conscious beverages, such as coconut water
and herbal teas. Additionally, southern India’s well-established retail and
distribution networks further enhance the accessibility of non-alcoholic
beverages, making it a key growth hub for beverage companies targeting both
urban and semi-urban markets.
Recent Developments
- In May 2024, PepsiCo India is broadening
its beverage range in Jammu & Kashmir with the introduction of its renowned
hydration brand, Gatorade. Gatorade will be offered in the region in all three
of its popular flavors includes Blue Bolt, Orange, and Lemon.
- In June 2024, Coca-Cola India has
launched an affordable small sparkling package (ASSP) featuring 100% recycled
PET (rPET) bottles. This initiative aims to promote sustainability while
offering consumers an eco-friendly and cost-effective option for enjoying
sparkling beverages.
- In July 2024, Sbooch Kombucha has
launched in India, offering a range of health-focused, organic, and
probiotic-rich beverages. The launch marks the brand's entry into the growing
market for functional drinks, catering to India's rising demand for wellness
products.
Key Market Players
- Dabur
India Limited
- ITC
Limited
- Varun
Beverages Limited
- Nestle
India Limited
- Bisleri
International Private Limited
- Coca-Cola
India Private Limited
- Hector
Beverages Private Limited
- Parle
Agro Pvt. Ltd
- PepsiCo
India Holdings Pvt Ltd
- Red
Bull India Private Limited
By Product Type
|
By Packaging Type
|
By Package Size
|
By Sales Channel
|
By Region
|
- Carbonated Beverage
- Non-Carbonated Beverage
|
|
- Below 250ml
- 250ml–1Liters
- Above 1Liters
|
- Departmental Stores
- Supermarket/Hypermarket
- Convenience stores
- Online
- Others
|
|
Report Scope:
In this report, the India Non-Alcoholic Beverage
Market has been segmented into the following categories, in addition to the
industry trends which have also been detailed below:
- India Non-Alcoholic Beverage
Market, By Product Type:
o Carbonated Beverage
o Non-Carbonated Beverage
- India Non-Alcoholic Beverage
Market, By Packaging Type:
o Bottles
o Cans
o Others
- India Non-Alcoholic Beverage
Market, By Package Size:
o Below 250ml
o 250ml–1Liters
o Above 1Liters
- India Non-Alcoholic Beverage
Market, By Sales Channel:
o Departmental Stores
o Supermarket/Hypermarket
o Convenience stores
o Online
o Others
- India Non-Alcoholic Beverage
Market, By Region:
o North
o South
o East
o West
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents
in the India Non-Alcoholic Beverage Market.
Available Customizations:
India Non-Alcoholic Beverage Market report with the
given market data, Tech Sci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
India Non-Alcoholic Beverage Market is an upcoming
report to be released soon. If you wish an early delivery of this report or
want to confirm the date of release, please contact us at [email protected]