Juicing It Up

FMCG giants are gearing up to tap the Rs 10 price segment, which hits the sweet spot of affordability among Indian consumers for beverages, makingit the preferred out-of-home consumption price point

- By Kishan Singh

SUMMER has come early and brought with it cheer for the beverage industry. The soaring temperatures predicted for April to June have come as a boon for India's non-alcoholic cold drinks industry, which is getting ready to tap the growing market for summer beverages in myriad innovative ways.

Cashing in on trends such as the growing health awareness among consumers as well as affordability, the major players in the non-carbonated drinks market are gearing up to race ahead in the battle for relevance and supremacy. While instant drink manufacturer Rasna is aiming to tap the Rs 10 segment, Dabur, which has a wide portfolio in the fruit juices segment, is looking to tap newer geographies. Whereas Hamdard, the makers of Rooh Afza, has plans in place to emerge as a leader in the segment in the summer season.

Healthy Growth

India's non-alcoholic drinks market, which consists of sub-categories such as carbonated soft drinks, fruit-based drinks, dairy-based drinks and functional beverages, is projected to see its 2025 revenues at $19.74 billion, including both at-home and out-of-home revenues, as per Statista. In terms of volume, at-home is expected to account for 34.12 billion litres by 2025, while out-of-home is likely to be 747.93 million litres.

Thanks to growing health awareness, rising urbanisation and shifting consumer preferences, such as the millennials and Gen Z favouring beverages that provide functional benefits, natural ingredients as well as convenience, the Indian non-alcoholic beverage market is seeing healthy growth. Valued at Rs 1.37 trillion in 2023, the market is projected to reach Rs 2.1 trillion by 2029, registering a CAGR of 7.06 per cent during the 2024 to 2029 period, as per market statistics.