Non-alcoholic Beverages Market in India 2022-2027

Non-alcoholic Beverages Market in India 2022-2027

Market insights:

Due to the high levels of sugar and artificial sweeteners in traditional carbonated soft drinks, a lack of competent labor, and high capital expenditures, the market for traditional non-alcoholic beverages has faced several difficulties. The use of non-alcoholic beverages has increased nationwide due to consumer preferences shifting and advances in product packaging and to increase affordability. The non-alcoholic beverage industry in India is anticipated to expand at a compound annual growth rate (CAGR) of 8.85% during the forecast period to reach INR 601.80 Bn by the end of FY 2027.

Segment insights:

The non-alcoholic beverages market is segmented into carbonated and non-carbonated beverages. The market for carbonated beverages is projected to surge at a CAGR of 5.57% during FY 2022 to FY 2027 to reach INR 185.96 billion at the end of the forecast period.

The category of carbonated beverages is anticipated to lose market share during the projected period because of the non-carbonated beverages segment's quick expansion. Aerated beverages that aren't cola, in particular fruit drinks, have grown in popularity recently. Leading companies are changing their business strategies in response to consumer worries about their health. The market for non-carbonated beverages has expanded rapidly because of growing consumer health consciousness and easier accessibility.

Impact of COVID-19:

When the second wave of the pandemic started in April 2021, the non-alcoholic beverage industry faced immediate challenges because every outlet had to close, which impacted their supply chain. Major industry players introduced new beverages to increase door-to-door deliveries and increase sales. In response to the disruptions in the global supply chains, the government implemented significant policies by enforcing the strict FSSAI guidelines for quality assurance and management of food products. Between April and June 2021, carbonated beverage manufacturers in India experienced their worst quarter. However, non-carbonated beverage sales during the second wave of COVID-19 sharply increased, especially in markets like packaged drinking water, mainly because of increased public awareness of their advantages. Due to their limited supply channels and use of direct-to-trade incentives marketing, regional players were able to increase their market shares as a result of the nationwide lockdown's disruption of the supply chains of well-known brands.

Competitive insights:

Major market players like Dabur Limited have introduced their lineup of immunity-boosting vegan-friendly drinks like Dabur Giloy Neem Juice, Dabur Amla Juice, and Dabur's ImuDab Syrup in response to the rising demand for healthy functional drinks following the onset of COVID-19.