India Carbonated Beverages Market Size Likely to Reach at a CAGR of 6.5% By 2033

As per the current market research conducted by the CMI Team, the India Carbonated Beverages Market size is expected to record a CAGR of 6.5% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 80.1 Billion. By 2033, the valuation is anticipated to reach USD 141.1 Billion.

India Carbonated Beverages Market: Growth Factors and Dynamics

• Increasing Urbanization and Disposable Income: Urbanization in India has led to lifestyle changes, with a growing middle class that has higher disposable income. This demographic shift has increased the demand for convenient and ready-to-drink beverages, including carbonated drinks. Urban consumers are more likely to adopt global consumption patterns, boosting the market.

• Youth Demographic and Changing Preferences: India has a large and youthful population that is open to experimenting with new flavors and brands. Young consumers are a major driver of the carbonated beverages market, showing a preference for trendy and innovative products. The introduction of novel flavors and limited-edition offerings appeals to this demographic, fostering the market growth.

• Expansion of Distribution Channels: The expansion of modern retail formats such as supermarkets, hypermarkets, and online grocery stores has made carbonated beverages more accessible. Improved distribution networks ensure that products reach a wider audience, including rural areas where penetration was previously low. E-commerce platforms have also become a significant sales channel.

• Marketing and Promotional Strategies: Aggressive marketing campaigns, celebrity endorsements, and sponsorships of major events have bolstered brand visibility and consumer engagement. Companies invest heavily in advertising to build brand loyalty and attract new customers. Promotional offers and festive season discounts further stimulate sales.

• Health and Wellness Trends: Growing health consciousness among Indian consumers has led to a demand for healthier beverage options. In response, many companies are introducing low-sugar, diet, and natural ingredient-based carbonated drinks. The shift towards healthier options presents both challenges and opportunities for market players to innovate and diversify their product lines.

• Regulatory Environment and Taxation: Government policies and regulations, such as the imposition of the Goods and Services Tax (GST) and health-related taxes on sugary drinks, impact the pricing and consumption patterns of carbonated beverages. Companies must navigate these regulations while maintaining competitive pricing. Additionally, efforts to improve food safety standards and quality control are crucial for market sustainability.

India Carbonated Beverages Market: Partnership and Acquisitions

• In 2023, In a leap into AI innovation, Coca-Cola unveiled Coca-Cola Y3000, crafted with artificial intelligence technology. This latest addition to the Coca-Cola Creations platform represents a limited-edition flavor, showcasing the brand’s commitment to embracing cutting-edge techniques in product development.

• In 2022, PepsiCo India injected an extra Rs 186 crore into its food manufacturing facility in Kosi Kalan, Mathura, Uttar Pradesh, for Doritos nacho chips production. This investment is part of the company’s larger Rs 1,022 crore commitment towards expanding its largest greenfield food manufacturing plant, primarily producing Lay’s potato chips.

Report Scope

India Carbonated Beverages Market: COVID-19 Analysis

The COVID-19 pandemic has significantly impacted the India Carbonated Beverages Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Decline in Sales and Distribution Disruptions: The COVID-19 pandemic led to a significant decline in sales due to lockdowns, restricted mobility, and the closure of restaurants, cafes, and other food service outlets. Disruptions in the supply chain and distribution networks further exacerbated the decline, with limited availability of raw materials and logistical challenges affecting production and delivery.

• Shift in Consumer Behavior: During the pandemic, there was a noticeable shift towards health-conscious consumption, with consumers prioritizing immunity-boosting and healthier beverage options over carbonated drinks. This shift in consumer preference impacted the demand for traditional carbonated beverages, as people became more wary of high-sugar products and sought out healthier alternatives.

• Innovation and Product Diversification: Companies are focusing on product innovation and diversification to cater to evolving consumer preferences. This includes the introduction of healthier variants, such as low-sugar, zero-calorie, and functional beverages fortified with vitamins and minerals. These innovations help in attracting health-conscious consumers back to the category.

• Expansion of E-commerce and Digital Marketing: Leveraging e-commerce platforms has become crucial for recovery, as online shopping gained prominence during the pandemic. Brands are enhancing their online presence through digital marketing campaigns, collaborations with online grocery platforms, and direct-to-consumer sales channels to reach a broader audience.

• Strengthening Supply Chains: Companies are investing in strengthening their supply chains to ensure resilience against future disruptions. This includes diversifying sourcing strategies, optimizing logistics, and enhancing inventory management to maintain a steady supply of products and minimize the impact of potential disruptions.

• Adapting to Consumer Preferences: Understanding and adapting to the new normal of consumer behavior is key. Brands are focusing on convenience, offering products in smaller, on-the-go packaging, and enhancing their value propositions through promotions and bundling offers to entice budget-conscious consumers.

• Health and Wellness Branding: Emphasizing health and wellness in branding and marketing efforts can attract consumers who have become more health-conscious due to the pandemic. Highlighting the use of natural ingredients, reduced sugar content, and functional benefits in marketing messages can help reposition carbonated beverages as a healthier choice.

In conclusion, the COVID-19 pandemic has had a mixed impact on the India Carbonated Beverages Market, with some challenges and opportunities arising from the pandemic.

List of the prominent players in the India Carbonated Beverages Market:

• Coca-Cola India Pvt. Ltd.
• PepsiCo India Holdings Pvt. Ltd.
• Parle Agro Pvt. Ltd.
• Bisleri International Pvt. Ltd.
• Hector Beverages Pvt. Ltd.
• Dabur India Ltd.
• Manpasand Beverages Ltd.
• Varun Beverages Ltd.
• Hamdard Laboratories (India)
• ITC Limited
• Tata Consumer Products Limited
• Frooti (Parle Agro)
• Paper Boat (Hector Beverages)
• Rasna Private Limited
• Xotik Frujus Pvt. Ltd.
• Others

The India Carbonated Beverages Market is segmented as follows:

By Product Type

• Cola Drinks
• Flavoured Carbonated Drinks
• Diet and Zero Calorie Beverages
• Others

By Packaging Type

• Cans
• Bottles
• PET Bottles
• Others

By Distribution Channel

• Retail Stores
• Supermarkets
• convenience stores
• Online Retail
• Others