Carbonated drink market growing at 35%; may touch Rs 54,000 cr by 2015
Growing at a compounded annual growth rate (CAGR) of about 35%, the Indian non-carbonated drink market, which includes fruit drinks, nectars and juices, is likely to touch Rs 54,000 crore by 2015 from the current level of Rs 22,000 crore, according to ASSOCHAM.
In a press release, the Associated Chambers of Commerce and Industry of India (ASSOCHAM), stated, "Factors that have fuelled this industry's growth are greater disposable incomes, particularly in urban areas; consumers are seeking healthier beverages even if they are relatively more expensive, due to their positioning."
Also raising awareness levels with regard to obesity and other weight related health issues, especially amongst teenagers and young adults, has helped push sales of non-carbonates, says an industry-specific analysis by ASSOCHAM.
ASSOCHAM findings indicate that a strong shift in consumer beverage demand towards non-carbonated alternatives is creating new opportunities for drinks manufacture in the country. The most traditional Indian beverages comprise lassi, chach, sharbat, thandai, kanj, or milk shake, nimbu pani (lemonade), badam doodh and coconut water.
The juices market in India is dominated by Dabur's Real fruit juices and PepsiCo's Tropicana has a 45% market share. Real is the market leader in the packaged fruit juices category with over 50% market share and a turn division for fruit juices and plans to focus on this high-growth segment.
"As a refreshing drink, juices certainly win hands down. A segment that is growing at incredibly high rates, the juice market is seeing an explosion of sorts with the entry of new brands, variants and innovations," said D S Rawat, secretary-general, ASSOCHAM.
He also said that the non-carbonated markets were growing at a double-digit growth rate. Meanwhile, the Indian carbonated drinks market has declined by 15-20% in the last three years as consumers are becoming more health-conscious and are embracing non-carbonated alternatives of beverage.
There has been a strong shift in the consumer beverage demand towards non-carbonated alternatives, creating new opportunities for drinks manufacturers in the country. The key reasons for the shift and rise in demand for non-carbonated beverages is due to health issues, increased standard of living and affordability, need for a better lifestyle, organised food retail and urbanisation.
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