India Carbonated Beverages Market 2024–2033

Reports Description

As per the current market research conducted by the CMI Team, the India Carbonated Beverages Market 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’s carbonated beverages market is a dynamic and rapidly evolving sector, characterized by significant growth driven by urbanization, increasing disposable incomes, and a young, experimental consumer base. Major players like Coca-Cola, PepsiCo, and Parle Agro dominate the market, offering a wide range of flavored sodas, sparkling water, and energy drinks.

Current trends focus on health and wellness, leading to the introduction of low-sugar and functional beverages. The market is also seeing a surge in e-commerce sales and digital marketing efforts. Sustainable packaging and corporate social responsibility initiatives are becoming increasingly important in shaping the industry’s future.

India Carbonated Beverages Market – Significant Growth Factors

The India Carbonated Beverages Market presents significant growth opportunities due to several factors:

• Increasing Urbanization and Disposable Income: Rapid urbanization and a growing middle class with higher disposable incomes have led to increased consumption of convenience foods and beverages, including carbonated drinks.

• Youth Demographic: A significant portion of India’s population is young, driving demand for trendy and innovative beverage options. Youthful consumers are more likely to experiment with new flavors and brands.

• Expansion of Retail and E-commerce: The proliferation of modern retail formats, such as supermarkets and hypermarkets, along with the rise of e-commerce platforms, has made carbonated beverages more accessible to a broader audience.

• Aggressive Marketing and Brand Loyalty: Extensive marketing campaigns, celebrity endorsements, and promotions have strengthened brand loyalty and increased consumer engagement, boosting sales.

• Health and Wellness Segment: There is a growing demand for healthier beverage options, such as low-sugar, zero-calorie, and functional drinks. Companies can capitalize on this trend by innovating and introducing products that cater to health-conscious consumers.

• Rural Market Penetration: With urban markets becoming increasingly saturated, there is significant potential for growth in rural areas. Expanding distribution networks and tailored marketing strategies can help tap into this underserved market segment.

India Carbonated Beverages Market – Mergers and Acquisitions

The India Carbonated Beverages Market has seen several mergers and acquisitions in recent years, with companies seeking to expand their market presence and leverage synergies to improve their product offerings and profitability. Some notable examples of mergers and acquisitions in the India Carbonated Beverages Market include:

• In 2023, PepsiCo Inc. introduced Starry, a Lemon-Lime flavored soda, available in both regular and zero-sugar variants. This latest offering reflects PepsiCo’s commitment to providing diverse beverage choices to cater to varying consumer preferences for taste and health consciousness.

• 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.

• In 2022, Monster Beverage Corporation finalized a $330 million cash acquisition deal with CANarchy Craft Brewery Collective LLC, a renowned craft beer and hard seltzer company. This strategic move marks Monster’s entrance into the alcoholic beverage sector, enhancing its market presence and diversification efforts.

These mergers and acquisitions have helped companies expand their product offerings, improve their market presence, and capitalize on growth opportunities in the India Carbonated Beverages Market. The trend is expected to continue as companies seek to gain a competitive edge in the market.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

India Carbonated Beverages Market – Significant Threats

The India Carbonated Beverages Market faces several significant threats that could impact its growth and profitability in the future. Some of these threats include:

• Health Concerns and Changing Consumer Preferences: Growing awareness about the health risks associated with high sugar consumption, such as obesity and diabetes, is leading consumers to shift away from traditional carbonated beverages toward healthier alternatives.

• Stringent Regulatory Environment: Government regulations and taxes on sugary drinks, such as the imposition of the Goods and Services Tax (GST) and potential health-related taxes, can increase product prices and reduce consumption.

• Environmental Concerns: The increasing focus on environmental sustainability and the negative impact of plastic waste can affect the market, as consumers and governments push for more eco-friendly packaging solutions, potentially increasing costs for manufacturers.

• Intense Competition: The market is highly competitive, with numerous domestic and international brands vying for market share. This intense competition can lead to price wars and reduced profit margins for companies.

• Economic Fluctuations: Economic downturns and fluctuations can negatively impact consumer spending power, leading to reduced discretionary spending on non-essential items like carbonated beverages, thereby affecting market growth.

Category-Wise Insights:

By Product Type

• Cola Drinks: Cola drinks are carbonated beverages flavored with a combination of spices, citrus oils, and sweeteners, primarily known for their distinct dark color and caramel flavor. In India, cola drinks remain popular due to strong brand loyalty and extensive marketing campaigns. However, health-conscious consumers are shifting preferences, prompting companies to introduce variants with reduced sugar content and natural ingredients to retain market share while addressing health concerns.

• Flavoured Carbonated Drinks: Flavored carbonated drinks encompass a variety of sodas infused with fruit flavors like orange, lemon, lime, and more exotic options such as mango and mixed fruit. These drinks are gaining traction in India due to their refreshing taste and variety. The introduction of local flavors and innovative combinations appeals to a broader consumer base. Seasonal and regional flavor launches, coupled with targeted marketing, drive demand in both urban and rural areas.

• Diet and Zero Calorie Beverages: Diet and zero-calorie beverages are carbonated drinks formulated to contain little to no sugar, using artificial or natural sweeteners to cater to calorie-conscious consumers. The rise in health awareness has significantly boosted the demand for these beverages in India. Brands are expanding their portfolios with new zero-calorie and low-calorie options, often highlighting natural sweeteners like stevia. Increased focus on fitness and health trends continues to drive growth in this segment.

• Others: This category includes niche and emerging carbonated beverages such as tonic water, energy drinks, and sparkling water, each serving specific consumer needs and preferences. In India, there’s growing interest in functional beverages like energy drinks and sparkling water, driven by urban lifestyles and the demand for healthier options. Tonic water is increasingly popular in the cocktail culture. Brands are innovating with unique flavors and functional ingredients to capture market share in these emerging segments.

By Packaging Type

• Cans: Aluminum cans are a popular packaging type for carbonated beverages due to their lightweight nature and recyclability. Cans are gaining popularity in India due to increasing consumer preference for single-serve options and portability. The shift towards more sustainable packaging solutions is also driving demand for aluminum cans, as they are perceived as more eco-friendly compared to plastic.

• Bottles: Glass bottles are a traditional packaging choice for carbonated beverages, known for preserving taste and carbonation. Glass bottles are favored for their premium appeal and recyclability. In India, there is a niche but growing market for glass-packaged beverages, particularly among health-conscious and environmentally aware consumers. However, the high cost and fragility limit their widespread adoption.

• PET Bottles: PET (Polyethylene Terephthalate) bottles are lightweight, durable plastic containers commonly used for carbonated drinks. PET bottles dominate the Indian carbonated beverages market due to their cost-effectiveness and convenience. However, rising environmental concerns are prompting manufacturers to explore recycled PET (rPET) and other sustainable alternatives to reduce plastic waste and enhance recycling efforts.

• Others: This category includes innovative and alternative packaging types such as Tetra Pak, bag-in-box, and pouches. Alternative packaging is emerging in response to environmental concerns and consumer demand for convenience. Tetra Pak and pouches are gaining traction for their sustainability and ease of use. Companies in India are experimenting with these options to differentiate their products and appeal to eco-conscious consumers.

By Distribution Channel

• Retail Stores: Traditional brick-and-mortar outlets catering to localized consumer needs, offering a wide array of carbonated beverages. Despite the rise of online shopping, retail stores remain popular due to personal interaction and immediate product availability.

• Supermarkets: Large-scale stores offering diverse selections of carbonated beverages alongside other products. With increasing urbanization and consumer preference for one-stop shopping, supermarkets are witnessing steady growth in India.

• Convenience Stores: Compact outlets provide quick access to carbonated beverages, especially in urban areas. Convenience stores are gaining momentum due to changing lifestyles, offering convenience and extended operating hours.

• Online Retail: E-commerce platforms facilitate easy access to a variety of carbonated beverages, appealing to tech-savvy consumers. With the proliferation of smartphones and internet penetration, online retail is experiencing rapid growth, offering convenience and doorstep delivery.

• Others: This category encompasses various distribution channels like vending machines, specialty stores, and direct sales. These channels are evolving to cater to niche consumer preferences, offering unique experiences and product ranges.

Report Scope

Competitive Landscape – India Carbonated Beverages Market

The India Carbonated Beverages Market is highly competitive, with a large number of manufacturers and retailers operating in the US. Some of the key players in the market include:

• 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

These companies operate in the market through various strategies such as product innovation, mergers and acquisitions, and partnerships.

New players like Paper Boat, Raw Pressery, and Bira 91 have adopted innovation and development to enter India’s carbonated beverages market. They focus on unique flavors, natural ingredients, and healthier alternatives, appealing to the evolving consumer preferences for authenticity and wellness.

Key players dominating the market include Coca-Cola, PepsiCo, and Parle Agro. They maintain market dominance through extensive distribution networks, strong brand recognition, and continuous product innovation. These key players leverage their economies of scale, marketing prowess, and strategic partnerships to retain market share and drive growth in the competitive landscape.

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