Indian beverage market - statistics & facts
Indian cuisines, although popular around the world, would be incomplete without a soothing beverage to accompany them. Much like the pairing of a cup of tea with samosa, the Indian food and beverage markets go hand-in-hand. Several factors contribute to the growth of the beverage market such as shifting consumer preferences, increasing urbanization, an increase in disposable income, tourism, and the impact of global trends.
Likewise, to meet the consumer's evolving taste preferences and demand, the market players are expanding their portfolios and innovating new products. The beverage market has been growing simultaneously with the food market, with two major segments contributing to its growth, namely non-alcoholic beverages and alcoholic beverages.
The two primary sub-segments of the sector are carbonated and non-carbonated beverages. Carbonated drinks have been a part of Indian beverage culture since the introduction of international brands like Coca-Cola and PepsiCo which were considered emblems of westernization in the country. However, the preference for aerated drinks is progressively decreasing as consumers are shifting towards a healthy lifestyle. Most consumers are opting for functional and organic drinks, with low or zero sugar.
The locally produced regional alcohol offers insights into the country’s diverse culture. Some of the famous regional liquor products include the spiritous liquor feni from Goa, Kerala's famous palm toddy, mahua from central India, and rice beer or wine from the northeastern region. On the other hand, whiskey is the preferred spirit liquor among urban Indians. Premium and super-premium whiskey brands have also witnessed growth, catering to affluent consumers seeking high-quality spirits.
Likewise, to meet the consumer's evolving taste preferences and demand, the market players are expanding their portfolios and innovating new products. The beverage market has been growing simultaneously with the food market, with two major segments contributing to its growth, namely non-alcoholic beverages and alcoholic beverages.
Non-alcoholic beverages: poised for strong growth
Non-alcoholic beverages are the go-to drinks for any season or occasion in the country. Two of India’s most iconic drinks, masala chai and mango lassi, were ranked among the top five best non-alcoholic beverages around the world. In addition, India could be the next non-alcoholic beverage hub due to the abundance of labor, raw materials, and government policies for the promotion of food processing in the country. The revenue generated from this sector is likely to increase to over 20 billion U.S. dollars by 2027.The two primary sub-segments of the sector are carbonated and non-carbonated beverages. Carbonated drinks have been a part of Indian beverage culture since the introduction of international brands like Coca-Cola and PepsiCo which were considered emblems of westernization in the country. However, the preference for aerated drinks is progressively decreasing as consumers are shifting towards a healthy lifestyle. Most consumers are opting for functional and organic drinks, with low or zero sugar.
Diversity of alcoholic beverages
The alcoholic beverage market is a significant contributor to the country's economy with immense growth potential. The alcoholic beverage market is set to reach a market size of more than 72 billion U.S. dollars by 2027. The market is broadly categorized into Indian-made foreign liquor (IMFL), foreign liquor, and Indian-made Indian liquor (IMIL) colloquially known as desi daru. Premium and imported alcohol brands find a more affluent consumer base, while lower-income consumers prefer cheaper, locally produced options.The locally produced regional alcohol offers insights into the country’s diverse culture. Some of the famous regional liquor products include the spiritous liquor feni from Goa, Kerala's famous palm toddy, mahua from central India, and rice beer or wine from the northeastern region. On the other hand, whiskey is the preferred spirit liquor among urban Indians. Premium and super-premium whiskey brands have also witnessed growth, catering to affluent consumers seeking high-quality spirits.
