Growing at a CAGR of about 35 percent annually, the Indian non-carbonated drinks market is likely to touch the Rs 54,000-crore mark by 2015, industry body Assocham said yesterday, according to a BL report. Currently, this market is around Rs 22,000 crore, including fruit drinks, nectars and juices.
Factors seen responsible for this growth are greater disposable incomes, particularly in urban areas, and a preference for traditional and healthier beverages even if they are relatively more expensive, says the report. 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, said an industry-specific analysis of The Associated Chambers of Commerce and Industry of India.
The findings indicated a strong shift in consumer beverage demand towards non-carbonated alternatives, creating new opportunities for drinks manufactures in the country. The Indian juice market is dominated by Dabur’s Real fruit juices, while PepsiCo’s Tropicana has a 45 per cent market share. Real is the market leader in the packaged fruit juices category with over 50 percent market share, Assocham Secretary-General, DS Rawat was quoted as saying by the report.
The non-carbonated markets are growing at a double-digit growth rate while the Indian carbonated drinks market has declined by 15-20 per cent in the last three years. There has been a strong shift in the consumer beverage demand towards non-carbonated alternatives, creating new opportunities for drinks manufacturers in the country, said the report.
The recent Assocham survey was based on responses from 2,500 representatives. An estimated 80 percent of the respondents preferred non-carbonated drinks in Delhi, Mumbai, Kolkata, Chennai, Bangalore, Ahmedabad and Hyderabad. The juice category is the fastest growing segment at present, at 30-35 perent per annum growth. The fruit drinks category has also been witnessing growth of around 10-15 percent annually. Metropolitan cities are the largest consumers of non- carbonated drinks and are going to be the biggest consumers, the survey maintained, the report added.