Drink for Thought: Analyzing the Beverages Segment

Drink for Thought: Analyzing the Beverages Segment

Drink for Thought: Analyzing the Beverages Segment

  • Posted by kalyani
  • On July 27, 2023


Vaibhav Manek
Partner - Business Advisory

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While carbonated soft drinks (CSDs), ready[1]to-drink teas (RTDs), energy drinks, and sports drinks account for more than 60% of the global market, carbonated beverages are the most popular choice in India, followed by bottled water, fruit beverages, and juices. The beverages space has seen seismic changes in the past few decades driven by the entry of major international beverage players in the Indian market, acceptance of newer product variants by the Indian consumer, and the evolution of the market to keep up with the consumer’s demands.

However, per a recent report, a general shift in consumption patterns has been observed, indicating that CSDs are growing at a lower rate, while consumption of packaged water, sports drinks, and tea and coffee-based drinks is rising. While the market share of CSDs remains the highest, the highest socio[1]economic strata are moving away from the consumption of traditional CSDs. According to a research firm, Mintel, while India is a smaller market for most packaged beverages, it is also overgrowing.

Beverage products are gaining traction among Indian consumers mainly because of the convenience and hygiene offered to them. As one would have expected, consumption is higher among the younger consumers and gradually declined as the age increased. Therefore busy, on-the-move lifestyles will also positively impact on these categories as consumers look for easy solutions to satisfy their thirst and hunger.

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