Beverage Industry in India

Beverage Industry in India

Indian beverages are as diverse as its people, influenced by the country’s vast terrain and climate. Summer calls for thirst-quenching, refreshing drinks, while winter calls for scalding hot chai and coffee. Every region has its unique assortment of drinks that are appropriate for each season. These are most likely made up of a variety of spices and herbs, with blends created with the health advantages of using locally sourced components in mind.

Indians now have the option of catering to their shifting purchasing patterns as a result of economic growth, urbanization, and the ease with which they may travel throughout the world. As a result, carbonated, non-alcoholic beverages have gained a sizable market share across the country. Surprisingly, metropolitan areas have a higher share of the population than rural India. In the coming years, this market was predicted to expand tremendously and diversify to encompass a fusion of drinks. Furthermore, big firms like Pepsi, Coca-Cola, Parle Agro, and Dabur benefit from the convenience of being ready-to-drink and readily available.

Consumer preferences are shifting in the beverage business, with demand for healthier, higher-quality, and more economical drink options increasing in all three segments.

Tea Sector

The Indian tea market is estimated to be worth Rs. 26,000 crores, with unbranded tea accounting for 30-35 percent of sales (by value). Tea is the most popular beverage in India, and we continue to witness growth at all levels, from loose tea to economy branded tea and up the chain to premium and super-premium teas.

The most popular sub-category is black tea, with boiled milk tea being a popular choice among customers.

Green tea accounts for 3% of the branded category and is increasing at a rate of 12.5 percent. Consumers are also looking for functional benefits from their cup of chai, as health and wellness continue to be a big trend (such as Ayurveda Tea and Tulsi Tea).

Tea cafés have resurfaced in metropolitan areas in recent years, helping to revitalize tea culture, provide a more comfortable environment than tea stalls, and act as a viable alternative to coffee chains. Tea cafés such as Chaayos, Chai point, and our very own Tata Cha are growing increasingly popular.

There is a growing potential base of customers who consider tea to be stylish and are learning about different types of tea.

Coffee Industry in India

In India, the branded retail coffee market is expected to reach Rs. 2,750 crores in 2019. Instant coffee is the most popular sub-segment, accounting for 80-85% of the market and expanding as customers seek convenience. Artisanal and gourmet premium coffees have also emerged in the industry, accounting for around 5% of the organized market.

Consumer behavior differs in the South and Rest of India sectors when it comes to at-home consumption. In the rest of India, coffee is a luxury item, and instant coffee is preferred, especially during the winter months. In the South, on the other hand, both instant and Roasted & Ground coffee is commonly consumed (filter coffee).

Water Industry in India

In India, behind tea, water is the second most popular beverage sub-category (globally it is the largest sub-category in the Beverages market). The bottled water market in India is currently valued at Rs. 17,000 crores, with a CAGR of 12%. Fruit-based beverages are an Rs. 8,250 crore market that is increasing at a 10% CAGR.

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