Home / Food Beverages / Non-alcoholic Beverages Market in India 2021

Non-alcoholic Beverages Market in India 2021

  • Id : RNR-885835
  • Category : Food Beverages
  • Publish Date : 21-Nov
  • Pages : 78
  • Publisher : Netscribes
License Type

Description
Market insights:
The traditional non-alcoholic beverages market has been facing a lot of challenges due to a decline in the demand for traditional carbonated soft drinks due to loaded sugar and artificial sweeteners, lack of skilled workforce, and huge capital costs. Consumers? changing preferences, coupled with innovations in product packaging and sizing to improve affordability, has led to a rise in the consumption of non-alcoholic beverages in the country. In terms of revenue, the non-alcoholic beverages market in India was valued at INR 336.50 Bn in FY 2020. It is expected to reach INR 1,131.52 Bn by FY 2027, expanding at a compound annual growth rate (CAGR) of ~18.69% during the forecast period.

Segment insights:
The non-alcoholic beverages market is categorized into two segments ? carbonated and non-carbonated beverages. The carbonated beverages market segment was valued at INR 134.60 Bn in FY 2020 and is expected to reach a value of INR 349.64 Bn by FY 2027, expanding at a CAGR of ~15.12% during the FY 2022 ? FY 2027 period. The non-carbonated beverages segment in India was valued at INR 153.33 Bn in FY 2020. It is expected to reach INR 781.88 Bn by FY 2027, expanding at a CAGR of ~20.52% during the FY 2022 ? FY 2027 period. 
The carbonated beverages segment is anticipated to lose its market share during the forecast period because of the massive expansion of the non-carbonated beverages segment. Over the past few years, non-cola aerated drinks have gained popularity, especially fruit drinks. Leading manufacturers are reshaping their corporate strategies to suit consumers' concerns regarding health. The non-carbonated beverages segment has grown exponentially due to improved health consciousness among consumers and increased affordability.
 
Impact of COVID-19:
With the onset of the second wave of the pandemic in April 2021, the non-alcoholic beverages industry faced the immediate challenges due to the closing of all outlets that hampered their supply chain. Key industry players introduced new drinks and increased door-to-door deliveries to drive sales. Due to the disruptions in global supply chains, the government introduced significant policies by imposing the strict FSSAI guidelines for quality assurance and management of food products. Indian manufacturers of carbonated beverages witnessed their worst quarter between April and June 2021. However, during the second wave of COVID-19, there was a steep rise in the sale of non-carbonated beverages, especially in segments such as packaged drinking water, primarily because of improved health awareness. The disrupted supply chains of prominent brands during the nationwide lockdown paved the way for regional players to increase their shares in local markets though having small supply channels, and direct-to-trade incentives marketing.
Competitive insights:
With the increasing demand for healthy functional drinks after the onset of COVID-19, major market players such as Dabur Limited have introduced their offering of immunity-boosting vegan-friendly drinks such as Dabur Giloy Neem Juice, Dabur Amla Juice, and Dabur?s ImuDab Syrup.
Categories