Soft Drinks - India

The Soft Drinks market in India has been experiencing significant growth in recent years.

Customer preferences: Indian consumers have shown a growing preference for soft drinks, driven by factors such as increasing disposable income, changing lifestyles, and a shift towards convenience. Soft drinks are seen as a refreshing and convenient option for quenching thirst, especially in the hot and humid climate of India. Additionally, the younger population in India has been a major driver of the growth in the soft drinks market, as they are more inclined towards trying new flavors and brands.

Trends in the market: One of the notable trends in the Indian soft drinks market is the increasing demand for healthier and natural options. Consumers are becoming more health-conscious and are seeking beverages that are low in sugar, free from artificial ingredients, and have added nutritional benefits. This has led to the introduction of a variety of healthier soft drink options in the market, including fruit-based drinks, herbal drinks, and beverages with natural sweeteners. Another trend in the market is the growing popularity of functional soft drinks. These are beverages that offer additional benefits beyond just refreshment, such as energy-boosting, stress-relieving, or digestive properties. Functional soft drinks often contain ingredients like vitamins, minerals, herbs, or probiotics, which are believed to have specific health benefits. This trend is driven by the increasing awareness of consumers about the impact of diet on overall well-being.

Local special circumstances: India is a country with diverse cultural and regional preferences, and this reflects in the soft drinks market as well. Different regions in India have their own traditional beverages that are popular among the local population. For example, in the northern part of India, lassi (a yogurt-based drink) and sugarcane juice are widely consumed, while in the southern part, coconut water and buttermilk are popular choices. These local preferences coexist with the global soft drink brands and contribute to the overall growth of the market.

Underlying macroeconomic factors: The growth of the soft drinks market in India is also influenced by macroeconomic factors such as rising disposable income, urbanization, and a growing middle class. As more people move to urban areas and experience higher income levels, they have more purchasing power to spend on discretionary items like soft drinks. Additionally, the increasing penetration of organized retail and the expansion of the foodservice industry have made soft drinks more accessible to a larger consumer base. In conclusion, the Soft Drinks market in India is witnessing significant growth due to changing customer preferences, including a demand for healthier and functional options. The local special circumstances, such as regional preferences for traditional beverages, further contribute to the market's development. The underlying macroeconomic factors of rising disposable income, urbanization, and a growing middle class also play a crucial role in driving the growth of the soft drinks market in India.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.