Mumbai: The soft-drinks market in India is undergoing a transition, with a shift from zero-sugar offerings to functional beverages that cater to health-conscious consumers. As companies strive to differentiate themselves in a competitive landscape, the emphasis is now on drinks that provide additional health benefits.
Following a year dominated by zero-sugar beverages promoted heavily in advertising and retail, manufacturers are now rolling out products enhanced with vitamins, minerals, probiotics, and prebiotics. These offerings not only maintain low or zero-calorie content but also respond to the increasing consumer demand for healthier daily options.
Both emerging startups and established brands are adopting this trend. Companies like Chini Kum, Zyro by Veeba, and newer entrants such as Peping and Misfits are launching beverages that focus on gut health and low-calorie formulations. Well-known names like Atmosphere Studio, Enlite, Quenzy, and Bubz are also developing probiotic and prebiotic drinks, as reported by Mint.
Regional brands are also contributing to this trend by introducing local flavors with healthier recipes. For example, Lahori Zeera is set to launch a zero-sugar variant sweetened with stevia to target those mindful of their calorie intake.
Industry insights from Euromonitor International show that India’s no-sugar soft drinks segment has nearly tripled since 2021, with projections indicating it could reach ₹30,850 crores by 2026. Meanwhile, the broader soft drinks market is estimated to range between ₹60,000 and ₹65,000 crores.
Experts attribute this shift to changing consumer behaviors. A report by Grant Thornton Bharat highlights that beverages offering benefits like hydration, immunity, and gut health are becoming integral to daily routines—from work to leisure.
Established brands are pivoting as well. The Rasna Group has introduced fortified drink options and expanded its range of reduced-sugar items. Major global players, including Coca-Cola and PepsiCo, are also broadening their low- and no-sugar product lines globally, with plans to introduce functional variants in India soon.
Furthermore, companies are merging health trends with traditional flavors. Beverages inspired by tastes such as kokum, jaljeera, and aam panna are being revitalized in modern formats, offering both regional charm and convenience.
As temperatures rise and consumer preferences evolve, analysts anticipate continued growth in this category, emphasizing that competition will be driven not only by taste but also by health benefits.
Key Takeaways
- The Indian soft-drinks industry is increasingly focusing on functional beverages.
- New products are enriched with vitamins, minerals, probiotics, and prebiotics.
- Regional brands are introducing local flavors in healthier formulations.
- The no-sugar soft drinks segment has significantly grown in recent years.
- Consumer behavior is shifting towards drinks offering hydration and immunity benefits.
- Global brands are also expanding their low-calorie and functional drink offerings.
FAQ
What are functional beverages?
Functional beverages are drinks that contain additional ingredients designed to provide health benefits beyond basic nutrition.
Are zero-sugar drinks still popular?
While zero-sugar drinks have been popular, the trend is shifting towards beverages that offer health benefits, including vitamins and probiotics.
What role do regional flavors play in this market shift?
Regional flavors are being incorporated into functional drinks, making them appealing to local consumers while promoting health benefits.
How is the market expected to grow?
Market analysts predict continued growth in the functional beverage category, driven by rising temperatures and evolving consumer tastes.
What brands are examples of this trend?
Brands like Chini Kum, Zyro by Veeba, and startups such as Peping and Misfits are prominent examples of the shift towards functional beverages.
