|
|
|
You can get e-magazine links on WhatsApp. Click here
|
|
|
|
|
|
Consumer of 2030 will prioritise brands that offer quality
|
|
Thursday, 02 January, 2025, 08 : 00 AM [IST]
|
|
Rahul Sangoi
|
India’s young consumers are reshaping the beverage industry at an unprecedented pace. With every passing year, the demand for both carbonated and non-carbonated drinks surges, led by a generation that seeks new flavours, functional benefits, and sustainable options. Until recently, the industry was largely dominated by multinational cola giants, but a growing number of local brands have emerged, captivating consumers with unique offerings that resonate with India’s rich diversity.
The Rise of Local Beverages
Over the past few years, Indian beverage brands have carved a niche in the market by introducing products that reflect local tastes and preferences. Flavours like jeera masala, kokum, and aampanna have captured the minds and wallets of young consumers, offering a refreshing change from traditional offerings. The appeal of these local flavours lies not only in their unique taste profiles but also in their cultural resonance. As young Indians increasingly seek beverages that reflect their identity, these traditional flavours, once found only in homemade recipes, are becoming mainstream.
The Shift from Traditional to New-Age Beverages
The young consumers of today do not want to be seen consuming the same brands that their parents or grandparents did. This generational shift in brand preference has fueled the popularity of new-age beverages like energy drinks, kombucha, iced teas, zero-calorie drinks, and flavoured waters. With a preference for beverages that reflect their modern, health-conscious lifestyles, India’s Gen Z and millennials are turning to drinks that provide more than just refreshment—they’re seeking products that fit their wellness routines, energy needs, and social identity.
Urbanisation and Infrastructure: Catalysts for Increased Consumption
India’s rapid urbanisation and rural electrification efforts are also transforming the beverage industry. As more villages gain access to electricity, retail stores in smaller towns and rural areas are now able to install refrigerators, significantly increasing access to chilled beverages. This infrastructure shift is expected to drive beverage consumption in new, untapped markets. With more small-town stores equipped to stock a wider variety of beverages, we anticipate a surge in demand from regions that previously had limited access to chilled, ready-to-drink options.
The Demand for Functional Benefits
Today’s consumers want more from their beverages. With an increased focus on health and wellness, there is growing demand for drinks that offer added functional benefits. They are looking beyond calorie counts and sugar content to demand beverages with real functional benefits. Low-sugar, naturally sweetened drinks, plant-based ingredients, probiotics, and enhanced vitamins are among the health-focused trends expected to continue reshaping product formulations. Ingredients like ashwagandha for stress relief, protein for muscle health, vitamin C for immunity, and energy-boosting compounds are no longer niche requests—they are quickly becoming mainstream. Brands that embrace these wellness trends by offering drinks with low sugar, natural ingredients, and functional benefits are well-positioned to capture the attention of health-conscious consumers.
Embracing Indian Flavours in New Context
While flavours like jeera, kokum, aampanna, guava and litchi have long been beloved in Indian households, their inclusion in packaged beverages represents a fusion of tradition and modernity that appeals to younger consumers. This shift marks a resurgence of Indian flavours, which, when combined with contemporary packaging and innovative formulations, resonate with the desire for authentic, culturally relevant products. As more brands experiment with these flavours, we expect them to become mainstays in the Indian beverage aisle, appealing to both young consumers and older generations looking for a taste of nostalgia.
Sustainability as a Key Priority
Young Indian consumers are vocal about their desire for sustainable options, and this sentiment is reshaping the industry. From eco-friendly packaging to ingredient sourcing, today’s brands must prioritise sustainability to remain competitive. The shift toward aluminium cans, which are more sustainable and recyclable than single-use plastics, reflects this trend. As environmental consciousness grows, so will the demand for brands that adopt sustainable practices throughout their production and distribution processes.
The Rise of Quick Commerce: Levelling the Playing Field for India’s Beverage Industry
The beverage industry in India is undergoing a remarkable transformation, thanks to the advent of quick commerce (Q-commerce). Historically, large multinational corporations (MNCs) dominated the general trade (GT) channel, which has been the mainstay distribution avenue for beverage companies. These established giants leveraged decades of distribution infrastructure and extensive networks, creating a significant barrier to entry for new and emerging brands. For many local players, penetrating GT at scale was a time-intensive, resource-heavy process. However, the rise of Q-commerce is changing the game, offering brands—big and small—an unprecedented opportunity to reach consumers directly and rapidly.
The emergence of Q-commerce is disrupting this traditional model by offering a faster, more flexible way for brands to connect with consumers. Unlike general trade, which relies on brick-and-mortar presence and intermediaries, Q-commerce allows companies to list their products on digital platforms where consumers can order directly. These platforms, including SwiggyInstamart, Blinkit, Zepto, and others, promise delivery within minutes, meeting the demand for speed and convenience that defines today’s consumer behaviour. This shift benefits both consumers and brands, as it bypasses some of the logistical challenges associated with GT and creates a more accessible entry point for new players.
India’s Gen Z and millennial consumers are digital natives who value convenience, speed, and innovation. For this demographic, Q-commerce is a natural fit, as it enables them to order a drink on demand from their mobile devices without needing to visit a physical store. These platforms cater to consumers who want instant gratification, allowing them to discover and try new brands without the limitations of what’s available at their local kirana store.
This shift is particularly beneficial for new-age beverage brands that offer niche, health-focused, or novel flavours. Traditional GT stores may be hesitant to stock unknown or niche brands due to limited shelf space and uncertain demand.
Premiumisation trend gaining traction
Premiumisation is gaining significant traction in today’s beverage market. Consumers are increasingly willing to pay a premium for products that deliver distinct value, unique experiences, or added functional benefits. This shift reflects a growing preference for quality over quantity, as consumers look for beverages that align with their personal values, health goals, and lifestyle aspirations.
With this trend, we’re seeing that consumers are not only drawn to the status of a premium brand but also to the enhanced benefits that come with it—whether it’s natural ingredients, sustainable packaging, functional enhancements like vitamins or adaptogens, or unique flavours. For them, paying a bit more is justified by the superior quality, innovation, and brand experience they receive in return. As a result, premiumisation is driving the development of niche, high-quality products that prioritise craftsmanship, authenticity, and value-added features.
In this evolving landscape, brands that can differentiate through premium offerings—backed by thoughtful product design, targeted marketing, and a clear value proposition—are well-positioned to capture a loyal, value-conscious audience willing to invest in a truly elevated beverage experience.
The Path Forward
India’s beverage industry is evolving rapidly, shaped by young consumers who value diversity, functionality, and sustainability. By 2030, the brands that succeed will be those that understand and adapt to these trends—offering drinks that align with the evolving lifestyle and values of Indian youth. As demand grows for beverages that not only taste good but also provide health benefits and reflect personal values, the industry will see continued innovation in flavours, formulations, and packaging.
For brands, the journey ahead is clear: understanding these preferences and embedding them into product development, packaging, and marketing will be critical. The Indian consumer of 2030 will prioritise brands that offer quality, authenticity, and responsibility, making this an exciting time for companies willing to embrace this shift.
(The author is CEO & co-founder, RIO InnoBevPvt Ltd)
|
|
|
|
|
|
|
|
|
|