India Non-Alcoholic Beverage Market By Product Type (Carbonated Beverage, Non-Carbonated Beverage), By Packaging Type (Bottles, Cans, Others), By Package Size (Below 250ml, 250ml–1Liters, Above 1Liters), By Sales Channel (Departmental Stores, Supermarket/Hypermarket, Convenience stores, Online, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F

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 bottles segment was 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 was the dominant 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

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, TechSci 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).

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