From its billion-dollar energy drink surge to a booming traditional lassi market, India’s beverage industry is a powerhouse of growth and diversity, as evidenced by its staggering $75.4 billion market size and a trajectory set to hit $115 billion in just five years.
Key Takeaways
- India's overall beverage market size reached USD 75.4 billion in FY2023, growing at a CAGR of 9.8% from FY2018 to FY2023.
- The non-alcoholic beverages segment in India was valued at USD 13.9 billion in 2022 and is projected to reach USD 19.5 billion by 2027.
- India's packaged drinking water market grew to INR 32,000 crore in 2023, with a CAGR of 15% over the past five years.
- Per capita consumption of soft drinks in India was 6.5 liters in 2023.
- 45% of urban Indians consume bottled water daily in 2023 surveys.
- Beer consumption in India reached 3.2 billion liters in FY2023.
- India's beverage production capacity for soft drinks exceeded 15 billion liters in 2023.
- 1,200 beverage manufacturing plants operational across India in FY2023.
- PET bottle production for beverages reached 50 billion units in 2023.
- Coca-Cola holds 50% market share in carbonated beverages in India 2023.
- PepsiCo commands 30% share in non-carbonated soft drinks market 2023.
- United Breweries leads beer market with 55% share in 2023.
- Low-sugar and natural ingredient beverages to grow at 15% CAGR till 2028.
- 40% rise in demand for plant-based milk alternatives by 2025 projection.
- FSSAI mandated sugar labeling on beverages from 2022, reducing sugar content by 10% avg.
India's beverage industry is booming, driven by health trends and rising urban consumption.
Consumption Statistics
- Per capita consumption of soft drinks in India was 6.5 liters in 2023.
- 45% of urban Indians consume bottled water daily in 2023 surveys.
- Beer consumption in India reached 3.2 billion liters in FY2023.
- 62% of Indian consumers prefer sugar-free beverages as per 2023 Kantar study.
- Tea consumption volume in India was 1.2 million tonnes in 2023.
- 35% of millennials in India consume energy drinks weekly in 2023.
- Coffee consumption per capita in India rose to 0.1 kg in 2023 from 0.09 kg in 2022.
- 28% of Indian households bought RTD juices in 2023, up from 22% in 2021.
- Alcoholic beverage consumption among 25-34 age group was 42% in urban India 2023.
- Packaged fruit juice consumption grew 18% to 1.5 billion liters in 2023.
- 55% of consumers in Tier-2 cities prefer flavored milk over plain in 2023.
- Carbonated drinks account for 40% of total soft drink consumption in India 2023.
- Health-conscious consumers (30% of population) shifted to low-calorie drinks in 2023.
- Beer per capita consumption in India was 2.2 liters in 2023.
- 70% of Indian women prefer herbal teas over regular tea in 2023 surveys.
- Sports drink consumption among gym-goers reached 25% penetration in metros 2023.
- Traditional beverages like buttermilk consumed by 65% rural households daily in 2023.
- Energy drink consumption volume hit 300 million cans in India 2023.
- 48% of Gen Z Indians consume kombucha or probiotic drinks monthly in 2023.
- Bottled water consumption per capita in urban India was 25 liters in 2023.
- RTD tea consumption grew 32% among office workers in 2023.
- 22% increase in premium whiskey consumption in Tier-1 cities 2023.
- Fruit-based drinks consumed by 38% of school children weekly in 2023.
- Coffee shop beverages consumption up 20% post-pandemic to 500 million cups in 2023.
- 60% of diabetics prefer zero-sugar beverages in India 2023.
- Aerated drinks consumption down 5% due to health awareness in 2023.
- Lassi and similar drinks volume 2 billion liters in rural India 2023.
- 75% of tea consumption in India is in loose form, not packaged, in 2023.
Consumption Statistics Interpretation
India is brewing a fascinating paradox: while the average person barely sips 6.5 liters of soda, they’re guzzling bottled water by the liter, flirting with sugar-free promises, fueling on energy drinks, and still holding sacred their vast, traditional oceans of loose-leaf tea and rural buttermilk.
Key Players and Market Share
- Coca-Cola holds 50% market share in carbonated beverages in India 2023.
- PepsiCo commands 30% share in non-carbonated soft drinks market 2023.
- United Breweries leads beer market with 55% share in 2023.
- Tata Consumer Products dominates RTD tea with 40% market share 2023.
- Bisleri International holds 60% share in packaged drinking water 2023.
- Red Bull owns 70% of energy drinks market in India 2023.
- ITC's fruit juices brand B Natural has 25% market share 2023.
- Radico Khaitan leads Indian Made Foreign Liquor (IMFL) with 12% share 2023.
- Parle Agro's Appy Fizz holds 35% in apple-flavored beverages 2023.
- Amul commands 45% in flavored milk beverages market 2023.
- Paper Boat leads ethnic drinks with 28% share in 2023.
- Kingfisher beer from UB Group has 25% premium beer share 2023.
- Dabur Real juice 32% market share in 100% fruit juices 2023.
- Yakult holds monopoly 90% in probiotic drinks 2023.
- Epigamia yogurt drinks 20% share in Greek yogurt beverages 2023.
- McDowell’s No.1 from United Spirits 30% IMFL market share 2023.
- Sprite from Coca-Cola leads lemon-lime segment with 45% share 2023.
- Frooti from Parle 22% mango drink market share 2023.
- Himalayan from Bisleri 15% in mineral water segment 2023.
- Monster Energy 15% share challenging Red Bull in 2023.
- Too Yumm by RP-Sanjiv Goenka 18% in health drinks 2023.
- Bagpiper whiskey 10% share in economy segment 2023.
- Limca from Coca-Cola 40% clear lime drink share 2023.
- Maaza mango drink 35% market share led by Coca-Cola 2023.
- Kinley water from Coca-Cola 20% packaged water share 2023.
- Tropicana 25% premium juice share by PepsiCo 2023.
- Bira 91 craft beer 12% premium beer market share 2023.
- HealthShots leads functional beverages with 15% share 2023.
- Organic India herbal teas 30% premium tea share 2023.
- Carlsberg India 8% overall beer market share 2023.
Key Players and Market Share Interpretation
The Indian beverage landscape is a corporate kingdom of familiar giants, where sipping on anything from cola to water likely means you're paying tribute to a reigning market monarch, yet a sip of craft beer or probiotic drink reveals the subtle rebellions brewing in the duchy.
Market Size and Growth
- India's overall beverage market size reached USD 75.4 billion in FY2023, growing at a CAGR of 9.8% from FY2018 to FY2023.
- The non-alcoholic beverages segment in India was valued at USD 13.9 billion in 2022 and is projected to reach USD 19.5 billion by 2027.
- India's packaged drinking water market grew to INR 32,000 crore in 2023, with a CAGR of 15% over the past five years.
- The carbonated soft drinks market in India stood at USD 4.2 billion in 2023, expected to grow at 7.5% CAGR till 2030.
- India's energy drinks market size was USD 500 million in 2023, forecasted to hit USD 1.2 billion by 2028 at 19% CAGR.
- The fruit beverages market in India reached USD 2.8 billion in FY2023, with 12% YoY growth driven by health trends.
- India's ready-to-drink tea market expanded to INR 1,200 crore in 2023, growing at 25% CAGR since 2019.
- The alcoholic beverages market in India was valued at USD 52 billion in 2023, with premium segment growing 15% annually.
- India's bottled water market hit 12 billion liters in consumption volume in 2023, up 14% from previous year.
- The sports drinks segment in India grew to USD 150 million in 2023, with 22% CAGR projected to 2030.
- India's beverage market is expected to reach USD 115 billion by FY2028, driven by urbanization and rising incomes.
- Non-carbonated soft drinks market in India valued at USD 3.1 billion in 2023, growing at 10.2% CAGR.
- The RTD coffee market in India reached INR 450 crore in 2023, with 30% annual growth rate.
- India's overall soft drinks market volume was 8.5 billion liters in 2023.
- Premium alcoholic beverages segment grew 18% YoY to USD 10 billion in India FY2023.
- The health drinks market in India was USD 1.8 billion in 2023, expected to double by 2027.
- India's beverage exports reached USD 1.2 billion in FY2023, up 20% from FY2022.
- Functional beverages market in India hit USD 800 million in 2023 at 16% CAGR.
- The iced tea market in India grew to INR 800 crore in 2023, 28% YoY increase.
- India's dairy-based beverages market size was USD 25 billion in 2023.
- Concentrates and syrups market in India valued at USD 1.5 billion in FY2023.
- The kombucha market in India reached INR 150 crore in 2023, growing 40% annually.
- India's beverage industry contributed 1.5% to GDP in FY2023.
- E-commerce sales of beverages in India surged to 15% of total market in 2023.
- The super-premium spirits segment grew 25% to USD 2 billion in 2023.
- India's nimbu pani and lassi traditional beverages market estimated at INR 5,000 crore.
- Herbal drinks market in India valued at USD 600 million in 2023, 12% CAGR.
- The aerated drinks market revenue was INR 35,000 crore in FY2023.
- India's beverage market per capita spend reached USD 50 in 2023.
- Traditional Indian beverages like jaljeera market size INR 2,000 crore in 2023.
Market Size and Growth Interpretation
India's beverage market is a frothy blend of ancient traditions and modern cravings, where the relentless thirst for everything from sacred groundwater to caffeinated potions is turning the nation into a trillion-dollar wellspring, one sip at a time.
Production and Manufacturing
- India's beverage production capacity for soft drinks exceeded 15 billion liters in 2023.
- 1,200 beverage manufacturing plants operational across India in FY2023.
- PET bottle production for beverages reached 50 billion units in 2023.
- India produced 1.3 million tonnes of tea in 2023, 80% for domestic market.
- Beer production volume in India was 3.5 billion liters in FY2023.
- 60% of fruit juice production sourced from contract farming in 2023.
- Water purification capacity in packaged water industry hit 15 billion liters annually 2023.
- Energy drinks production grew 25% to 400 million units in 2023.
- 70% of carbonated beverages produced in South and West India in 2023.
- India’s dairy beverage production reached 200 million liters daily in 2023.
- 500 new bottling plants added for RTD beverages since 2020 by 2023.
- Sugar syrup production for beverages was 2 million tonnes in FY2023.
- 40% of alcoholic beverages produced by public sector units in 2023.
- Fruit concentrate production capacity 1 million tonnes per annum in 2023.
- 85% localization in beverage packaging materials achieved in 2023.
- Coffee roasting capacity expanded to 50,000 tonnes in India 2023.
- Reverse osmosis plants for water beverages numbered 5,000 in 2023.
- Malt production for beer reached 1.5 million tonnes in FY2023.
- Herbal extract production for beverages up 15% to 100,000 tonnes 2023.
- Canned beverage production lines increased to 300 across India in 2023.
- 2 billion glass bottles recycled for beverages in 2023.
- Probiotic drink production capacity 500 million liters per year 2023.
- 75% of production costs in beverages attributed to raw materials in 2023.
- Aerated water production 10 billion liters from 1,500 plants in 2023.
- Tetra pack production for juices 3 billion units in India 2023.
- Beverage concentrate exports from production hubs USD 500 million 2023.
Production and Manufacturing Interpretation
While India's beverage industry is brewing, bottling, and fermenting on a truly epic scale, it’s sobering to remember that the entire enterprise is fundamentally a race to quench a billion thirsts, one carefully packaged liter at a time.
Trends and Regulatory
- Low-sugar and natural ingredient beverages to grow at 15% CAGR till 2028.
- 40% rise in demand for plant-based milk alternatives by 2025 projection.
- FSSAI mandated sugar labeling on beverages from 2022, reducing sugar content by 10% avg.
- Sustainability packaging: 50% brands shifting to recyclable by 2025.
- Premiumization trend: Premium beverages share to rise from 20% to 35% by 2027.
- E-commerce beverage sales projected to hit 25% of total by 2025.
- Alcohol delivery apps grew 300% post-2021 regulations in 10 states.
- Functional beverages with vitamins to capture 20% market by 2026.
- Plastic ban led to 30% shift to aluminum cans in carbonated drinks 2023.
- Non-alcoholic craft beers surged 50% in sales 2023.
- AI in supply chain adopted by 60% major players for demand forecasting 2023.
- GST on aerated drinks remains 28% highest slab in 2023.
- Organic beverage certification grew 25% with APEDA support 2023.
- Vending machines for healthy drinks installed 50,000 units in offices 2023.
- Ready-to-drink cocktails market to grow 40% CAGR to 2028.
- 70% consumers demand transparent nutrition info per ASCI guidelines 2023.
- Hydration drinks with electrolytes up 35% post-COVID 2023.
- Direct-to-consumer brands captured 15% market via D2C in 2023.
- Excise duty on spirits increased 10% avg across states in FY2023.
- Keto and low-carb beverages launched by 20 major brands 2023.
Trends and Regulatory Interpretation
India’s beverage industry is soberly ditching sugar and secrecy for sustainability and sophistication, as health-conscious sippers, regulatory pushes, and tech-savvy logistics ferment a future where what you drink—and how it’s packaged, delivered, and even boozelessly brewed—is being radically redefined.
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