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India Beverage Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

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    Report

  • 116 Pages
  • June 2025
  • Region: India
  • Expert Market Research
  • ID: 6112013
The India beverage market size reached around USD 75.01 Billion in 2024. The market is projected to grow at a CAGR of 6.80% between 2025 and 2034 to reach nearly USD 144.82 Billion by 2034. The market growth can be attributed to the burgeoning demand for functional beverages, including plant-based juices and health drinks. Moreover, the expansion of retail stores and the development of unique packaging solutions, coupled with the increasing trend of health-consciousness, are favouring the market growth.

India Beverage Market Growth

As per the Agricultural and Processed Food Products Export Development Authority, India is currently the world’s 40th largest exporter of alcoholic beverages. The UAE, Tanzania, Angola, Singapore, the Netherlands, Rwanda, and Kenya are its major export destinations. According to the Confederation of Indian Alcoholic Beverage Companies (CIABC), government support for alcoholic beverage producers is expected to increase the nation’s exports to USD 1 billion in the coming years. In 2023-24, exports amounted to USD 389 million, and the country is aiming for a 14%-15% growth in production annually to meet the burgeoning demand for alcoholic beverages globally. Besides, the Indian government is expected to allow alcoholic beverage producers to produce packaging in flexible sizes, charge minimum charges for labour organisations, provide attractive incentives for participation in international exhibitions and fairs, and reimburse levies imposed on other inputs. Enabling alcoholic beverage producers to obtain timely permissions for branding and bottling of alcoholic beverages is expected to favourably shape the India beverage market dynamics.

An increasing number of beverage consumers in India view coffee as a youthful and aspirational drink. It also provides a unique café-like experience at home, which is expected to further propel market growth in upcoming years.

Key Trends and Developments

Growing focus on reducing sugar consumption; the emergence of regional brands; increasing consumption of instant coffee; and the shift towards sustainable packaging are the major factors favouring the India beverage market expansion.

November 2024

Piccadily Agro announced its decision to invest INR 1000 crore towards the expansion of its distillery and malt production facilities in Haryana and establish a new plant in Mahasamund, Chhattisgarh. This is expected to raise its annual production capacity to 460 KLPD and boost the consumption of alcoholic beverages domestically.

March 2024

During the Regional Industry Conclave held in Ujjain, Hindustan Coca-Cola Beverages (HCCB) announced an investment of INR 350 Cr. in Madhya Pradesh to establish 2 new manufacturing lines at Rajgarh Beverge production facility. This is creating a favourable India beverage market outlook.

January 2024

Starbucks Corporation announced its decision to expand its existing network of retail stores, drive-thrus, and 24-hour cafes in Tier II and Tier III cities to cater to the increasing demand for coffee consumption among Indian consumers. Rapid urbanisation and rising consumer disposable incomes are expected to favour this move by Starbucks, thereby leading to the market growth.

October 2023

In collaboration with its bottling partners - SLMG Beverages Ltd and Moon Beverages, Coca Cola launched 100% recycled PET packaging bottles in sizes of 750 ml and 250 ml for its carbonated beverages. Its label features a call-to-action message of “Recycle Me Again” and is expected to drive sustainable economic development. This is one of the key India beverage market trends.

Growing focus on reducing sugar consumption

As consumers increasingly become health-conscious and aware of the health risks of excessive sugar consumption, the demand for healthier beverage solutions, especially targeted at children, is surging.

Emergence of regional brands

Regional brands cater to local tastes and have competitive pricing strategies. They have a strong distribution channel and enjoy a significant presence in semi-urban and rural areas. This is expected to enhance the India beverage market expansion. During the summer of 2023-42, Mala Fruit Products (Maharashtra), Dailee (Tamil Nadu), Davat (Gujarat), and Lahori (Punjab) emerged as some of the most popular regional beverage brands in India. This indicates their strong role in shaping the market dynamics in India.

Increasing consumption of instant coffee

The growing popularity of instant coffee, especially among younger generation and urban consumers, as a daily convenient beverage is boosting the India beverage market revenue. The introduction of flavoured varieties such as vanilla, caramel, and hazelnut and speciality blends of instant coffee has further increased its consumption among consumers seeking innovative beverages.

Shift towards sustainable packaging

With growing environmental concerns among consumers, beverage companies are increasingly adopting eco-friendly practices such as sustainable sourcing of ingredients, utilisation of energy-efficient solutions, and deployment of eco-friendly packaging solutions to improve their sustainability profiles.

India Beverage Market Trends

Shift towards sustainable packaging

Sustainable packaging is playing a significant role in the growth of the market by aligning with growing consumer demand for environmentally responsible products. As consumer awareness of various environmental issues increases, they are seeking recyclable, biodegradable, or reusable packaging solutions for beverages. This has prompted companies to switch to paper-based cartons, plant-based plastics, and glass bottles, among other eco-friendly packaging solutions, to reduce waste and attract eco-conscious buyers. This has built consumer trust in different brands and is driving younger generations towards more environmentally responsible brands, hence creating a favourable India beverage market outlook.

Rise of regional brands

Growing incidences of heatwaves and rising temperature levels in the country have prompted beverage companies to introduce innovative flavours. Between March and May 2024, the penetration rate of regional beverage brands across India rose to 7%, a year-on-year surge from 5% in 2023. Based on market analysis, the consumer reach of regional beverage brands in urban and rural areas increased to 10% and 5.3% respectively, thereby facilitating the India beverage market development. For instance, the demand for Dailee, a regional beverage brand of Tamil Nadu, witnessed a 2x growth among consumers in 2024.

India Beverage Industry Segmentation

The report titled “India Beverage Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Breakup by Product Type

  • Alcoholic Beverages
  • Beer
  • Wine
  • Spirits
  • Non-Alcoholic Beverages
  • Energy and Sports Drink
  • Soft Drinks
  • Bottled Water
  • Packaged Juice
  • RTD Tea and Coffee
  • Others
  • Bio-based

Breakup by Distribution Channel

  • On-Trade
  • Off-Trade

Breakup by Region

  • East India
  • West and Central India
  • North India
  • South India

India Beverage Market Share

Based on region, the market is segmented into East India, West and Central India, North India, and South India. Over the forecast period of 2025-2034, the market for beverages in West and Central India is expected to grow at a CAGR of 7.5% due to the growth of regional beverage brands. East India is expected to grow at a CAGR of 7.1% between 2025 and 2034 due to the rising consumption of ready-to-drink tea and coffee products.

Based on distribution channel, the market is categorised into on-trade and off-trade. The India beverage market analysis suggests that on-trade consumption is expected to grow at a CAGR of 7.6% between 2025 and 2034 due to the rising consumption of alcoholic beverages, while off-trade consumption is expected to grow steadily with the shift towards home-entertainment.

Leading Companies in the India Beverage Market

By focusing on sustainability, innovation, and product diversification, Indian beverage manufacturers are driving business growth. Major players are launching new low-calorie, health-focused beverages in new flavours to cater to the burgeoning demand for natural and functional products. Rising investments to boost supply chain management and the establishment of strategic partnerships are expected to further increase the India beverage market revenue in the coming years.

Prime Hydration LLC

Prime Hydration LLC was founded in 2022 and is headquartered in London, United Kingdom. It specialises in making a wide range of sports and energy drinks, apart from drink mixes.

Suntory Holdings Limited

Suntory Holdings Limited was founded in 1899 and is headquartered in Tokyo, Japan. It specialises in producing alcoholic beverages like beer and wine, and its annual revenues amount to USD 20.9 billion.

Reliance Retail Limited

Reliance Retail Limited was founded in 2006 and is headquartered in Mumbai, Maharashtra. It is ranked as one of the world's top 100 retailers, which records over 3 million transactions daily.

The Coca-Cola Company

The Coca-Cola Company initially began in May 1886 and later grew into a renowned soft drinks company with a market presence in around 200 countries. It is headquartered in Georgia, United States.

Other players included in the India beverage market report are Nestle S.A., Pepsico Inc., Heineken N.V., Red Bull GmbH, Diageo plc, and Anheuser-Busch N.V., among others.

Table of Contents

1 Executive Summary
1.1 Market Size 2024-2025
1.2 Market Growth 2025(F)-2034(F)
1.3 Key Demand Drivers
1.4 Key Players and Competitive Structure
1.5 Industry Best Practices
1.6 Recent Trends and Developments
1.7 Industry Outlook
2 Market Overview and Stakeholder Insights
2.1 Market Trends
2.2 Key Verticals
2.3 Key Regions
2.4 Supplier Power
2.5 Buyer Power
2.6 Key Market Opportunities and Risks
2.7 Key Initiatives by Stakeholders
3 Economic Summary
3.1 GDP Outlook
3.2 GDP Per Capita Growth
3.3 Inflation Trends
3.4 Democracy Index
3.5 Gross Public Debt Ratios
3.6 Balance of Payment (BoP) Position
3.7 Population Outlook
3.8 Urbanisation Trends
4 Country Risk Profiles
4.1 Country Risk
4.2 Business Climate
5 Asia Pacific Beverage Market Overview
5.1 Key Industry Highlights
5.2 Asia Pacific Beverage Historical Market (2018-2024)
5.3 Asia Pacific Beverage Market Forecast (2025-2034)
6 India Beverage Market Overview
6.1 Key Industry Highlights
6.2 India Beverage Historical Market (2018-2024)
6.3 India Beverage Market Forecast (2025-2034)
7 India Beverage Market by Product Type
7.1 Alcoholic Beverages
7.1.1 Historical Trend (2018-2024)
7.1.2 Forecast Trend (2025-2034)
7.1.3 Breakup by Type
7.1.3.1 Beer
7.1.3.2 Wine
7.1.3.3 Spirits
7.2 Non-Alcoholic Beverages
7.2.1 Historical Trend (2018-2024)
7.2.2 Forecast Trend (2025-2034)
7.2.3 Breakup by Type
7.2.3.1 Energy and Sports Drink
7.2.3.2 Soft Drinks
7.2.3.3 Bottled Water
7.2.3.4 Packaged Juice
7.2.3.5 RTD Tea and Coffee
7.2.3.6 Others
7.3 Bio-based
7.3.1 Historical Trend (2018-2024)
7.3.2 Forecast Trend (2025-2034)
8 India Beverage Market by Distribution Channel
8.1 On-Trade
8.1.1 Historical Trend (2018-2024)
8.1.2 Forecast Trend (2025-2034)
8.2 Off-Trade
8.2.1 Historical Trend (2018-2024)
8.2.2 Forecast Trend (2025-2034)
9 India Beverage Market by Region
9.1 East India
9.1.1 Historical Trend (2018-2024)
9.1.2 Forecast Trend (2025-2034)
9.2 West and Central India
9.2.1 Historical Trend (2018-2024)
9.2.2 Forecast Trend (2025-2034)
9.3 North India
9.3.1 Historical Trend (2018-2024)
9.3.2 Forecast Trend (2025-2034)
9.4 South India
9.4.1 Historical Trend (2018-2024)
9.4.2 Forecast Trend (2025-2034)
10 Market Dynamics
10.1 SWOT Analysis
10.1.1 Strengths
10.1.2 Weaknesses
10.1.3 Opportunities
10.1.4 Threats
10.2 Porter’s Five Forces Analysis
10.2.1 Supplier’s Power
10.2.2 Buyer’s Power
10.2.3 Threat of New Entrants
10.2.4 Degree of Rivalry
10.2.5 Threat of Substitutes
10.3 Key Indicators of Demand
10.4 Key Indicators of Price
11 Competitive Landscape
11.1 Supplier Selection
11.2 Key Global Players
11.3 Key Regional Players
11.4 Key Player Strategies
11.5 Company Profile
11.5.1 Nestle S.A.
11.5.1.1 Company Overview
11.5.1.2 Product Portfolio
11.5.1.3 Demographic Reach and Achievements
11.5.1.4 Certifications
11.5.2 Pepsico Inc.
11.5.2.1 Company Overview
11.5.2.2 Product Portfolio
11.5.2.3 Demographic Reach and Achievements
11.5.2.4 Certifications
11.5.3 The Coca-Cola Company
11.5.3.1 Company Overview
11.5.3.2 Product Portfolio
11.5.3.3 Demographic Reach and Achievements
11.5.3.4 Certifications
11.5.4 Heineken N.V.
11.5.4.1 Company Overview
11.5.4.2 Product Portfolio
11.5.4.3 Demographic Reach and Achievements
11.5.4.4 Certifications
11.5.5 Red Bull GmbH
11.5.5.1 Company Overview
11.5.5.2 Product Portfolio
11.5.5.3 Demographic Reach and Achievements
11.5.5.4 Certifications
11.5.6 Diageo plc
11.5.6.1 Company Overview
11.5.6.2 Product Portfolio
11.5.6.3 Demographic Reach and Achievements
11.5.6.4 Certifications
11.5.7 Anheuser-Busch N.V.
11.5.7.1 Company Overview
11.5.7.2 Product Portfolio
11.5.7.3 Demographic Reach and Achievements
11.5.7.4 Certifications
11.5.8 Suntory Holdings Limited
11.5.8.1 Company Overview
11.5.8.2 Product Portfolio
11.5.8.3 Demographic Reach and Achievements
11.5.8.4 Certifications
11.5.9 Reliance Retail Limited
11.5.9.1 Company Overview
11.5.9.2 Product Portfolio
11.5.9.3 Demographic Reach and Achievements
11.5.9.4 Certifications
11.5.10 Prime Hydration LLC
11.5.10.1 Company Overview
11.5.10.2 Product Portfolio
11.5.10.3 Demographic Reach and Achievements
11.5.10.4 Certifications
11.5.11 Others

Companies Mentioned

  • Nestle S.A.
  • Pepsico Inc.
  • The Coca-Cola Company
  • Heineken N.V.
  • Red Bull GmbH
  • Diageo plc
  • Anheuser-Busch N.V.
  • Suntory Holdings Limited
  • Reliance Retail Limited
  • Prime Hydration LLC