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How small brands are storming the beverage scene
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Monday, 03 March, 2025, 12 : 00 PM [IST]
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Abhishek Dhaliwal
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The soft drink sector was almost exclusively dominated by Coca-Cola and Pepsi, with both selling millions of litres of carbonated sodas and sugar drinks in India for years. But now, an increasing number of home-grown beverage manufacturers are emerging which offer healthier probiotic rich kombucha, zeera drinks, mango drink, and kanji and modern takes on Indian classics, posing a challenge to these giants.
Indian entrepreneurs are now transforming the beverage business with everything from masala infused sparkling drinks to turmeric lattes. And the response from consumers? Surprising and positive.
Wealthier Indians are now ready to ditch sugary sodas and start consuming functional drinks, which is inciting concern regarding diabetes, obesity and gut health. Thus, the Indian beverage market is shifting from hype to health.
Innovative Solutions for Nostalgic Flavours
Affordable Indian startups are now replacing Aam Panna, Kokum, Jaljeera and Nimbu Pani with more natural ingredients and less sugar to make them healthier and functional. Many young consumers are now excited about the ready to drink options infused with electrolytes and probiotics, leading them to replace sodas.
Fermented Drinks are the Next Big Thing
Due to increased digestive issues as a result of modern diets, fermented beverages such as Kombucha are on the rise. These fermented beverages are high in probiotics, which not only taste delicious, but are also good for gut health — an essential component of overall health.
The Digital & D2C Disruption While Coke and Pepsi pass through extensive credit and distribution networks, small Indian brands are using Instagram, WhatsApp Commerce, and D2C to get from their factory to their audience.
Small Indian beverage companies are using innovative approaches alongside traditional methods and health-focused trends to compete against international corporations like Coca-Cola and Pepsi. Here’s how they’re making their mark:
Emphasising Health & Wellness
Today's consumers demand beverage options that provide additional health or functional advantages instead of just refreshing qualities. Health-conscious consumers prefer kombucha as a probiotic beverage along with drinks that feature traditional Indian ingredients such as turmeric, ashwagandha, tulsi, and jaggery.
Unique & Localised Flavours
Indian beverage brands differentiate themselves from Coca-Cola and Pepsi by tailoring their products to regional taste preferences. Local flavour profiles such as aam panna (raw mango), kokum, jeera masala, and rose sherbet connect with regional tastes and memories while providing an advantage against widespread soda brands.
Sustainability & Clean Labelling
Eco-friendly consumers show preference towards brands that implement sustainable packaging solutions while also utilising natural sweeteners and minimal processing methods. Indian startups across various sectors such as kombucha manufacturing showcase clean labels by avoiding artificial preservatives or colours and choose glass or biodegradable packaging materials to attract eco-conscious customers.
Direct-to-Consumer & Community Marketing
These brands bypass traditional distribution networks by selling directly to consumers through their websites and online marketplaces like Amazon, Flipkart, and BigBasket as well as social media. Brands build customer loyalty through interactive storytelling while partnering with influencers who educate consumers about gut health benefits in traditional wellness drinks.
Café & Restaurant Collaborations
Kombucha brands partner with cafes and health-focused eateries as well as fitness studios to target consumers who appreciate high-quality drinks that promote wellness. A number of kombucha producers provide franchise opportunities to cafes which specialise in serving fresh kombucha directly from the tap.
Craft & Premium Positioning
Small beverage brands set themselves apart from Coca-Cola and Pepsi through a craft and premium product positioning strategy aimed at urban consumers who value quality and authenticity enough to pay higher prices.
Regional & Niche Distribution
Big brands use mass distribution while smaller brands expand first through targeted urban health stores and organic markets before growing larger. This strategy enables them to perfect their products before entering larger competitive markets.
Challenges & The Road Ahead
These expanding brands continue to struggle with restricted marketing budgets and obstacles in production scaling and distribution systems. The increasing demand for natural and functional beverages along with growing consumer awareness helps these brands secure a distinct position in India's rapidly growing beverage market.
(The author is founder, Ekkomoh. He can be reached at er.abhi.dhaliwal@gmail.com)
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