Quenching Thirst: India's Soft Drink Industry set for a Refreshing Revival

The Indian soft drink sector, although facing weather-related challenges this year, is poised for a significant rebound, with growth expected to surpass 10% next year, according to a report from Systematix Institutional Equities. The Carbonated Soft Drinks (CSD) industry, a major segment of this market, has historically grown at a pace of 13-14% and is slated for strong double-digit growth in the medium term.

Experts cited in the report note that the CSD market, valued at Rs 300 billion, should maintain robust growth. These beverages, typically non-alcoholic and carbonated with various flavorings, form a substantial part of India's Liquid Refreshment Beverages (LRB) market, which also encompasses water, juices, energy, and sports drinks.

Local brands hold approximately half of the Indian market, with the remainder dominated by key players like Bisleri, Kinley, Aquafina, and Bailey. Despite the intense competition, particularly from regional favorites such as Bindu-Jeera in the South and Karachi Soda in the North, the report highlights a gradual shift in market share towards larger players. This shift is partly due to changing consumer preferences, with increased emphasis on healthier options and regional flavors driving industry innovation and adaptation.

(With inputs from agencies.)