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Indian non-carbonated beverage market to boom, says report

By Ankush Chibber , 06-Aug-2012

Lifestyle-related issues is pushing Indians to drink more non-carbonated beverages –a market set to grow by 35% annually according to a new report.

According to a report by the Associated Chambers of Commerce and Industry of India (ASSOCHAM), the market would peak at US$7.9bn by 2015, up from US$2.7bn.

The market, which includes fruit drinks, nectars and juices among other beverages, is being fuelled by greater disposable incomes, particularly inIndia’s urban areas.

“Consumers are seeking healthier beverages even if they are relatively more expensive, due to their positioning,” the report said, adding that rising awareness levels with regard to obesity and related health issues, especially amongst teenagers and young adults, has helped push sales of non-carbonates.

The report revealed that there has been a strong recent shift in consumer beverage demand towards non-carbonated alternatives, creating new opportunities for drinks manufacturers in the country.

Young Indians rejecting soda

D S Rawat, secretary general at ASSOCHAM, pointed out that the Indian carbonated drinks market has declined by 15-20% in the last three years as consumers are becoming more health conscious – and wealthier.

In a recent survey conducted by the organisation on a sample size of 2,500 representatives from metropolitan cities likeDelhi, Mumbai, andBangalore, 79% respondents said they preferred non-carbonated drinks.

According to the survey, metropolitan inhabitants are the largest consumers of non-carbonated drinks and are going to be the biggest consumers going forward.

Juices in the lead

The report pointed out that the juice category is the fastest growing segment at 30-35% annually, while the fruit drinks category has also been witnessing growth of around 10-15% annually.

Dabur's Real fruit juices dominate the juices market inIndiaand PepsiCo’s Tropicana also has a 45% market share. Real is the market leader in the packaged fruit juices category with over 50% market share and plans to focus on this high-growth segment.

“As a refreshing drink, juices certainly win hands down. A segment that is growing at incredibly high rates, the juice market is seeing an explosion of sorts with the entry of new brands, variants and innovations,”  said Rawat.

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