India’s soft drink industry is expected to bounce back with a growth of over 10% in 2025, after slowing down this year due to unusual weather patterns, according to a report by Systematix Institutional Equities.
The report says the Carbonated Soft Drinks (CSD) segment, which usually grows at 13–14% every year, will see strong growth in the medium term. Currently, this segment is worth around ₹30,000 crore and is likely to benefit from better weather and reduced local competition.
India’s beverage market includes Liquid Refreshment Beverages (LRBs) such as soft drinks, bottled water, juices, energy drinks, and sports drinks. Soft drinks make up 40–45% of this market, energy drinks about 8–10%, juices around 5%, and sports drinks just 1–2%. The rest is bottled water.
Right now, local brands and big companies like Bisleri, Kinley, Aquafina, and Bailey share the market equally. But this is changing. Larger brands are gaining ground thanks to their strong distribution networks and better brand recall.
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After GST was implemented, many small local competitors started losing their dominance. Drinks like Bindu-Jeera in the South and Karachi Soda in the North used to control 75–80% of their regional markets but are now losing popularity. In Tamil Nadu, for example, only Bovonto remains as a known local brand.
The report also mentions that India’s per capita beverage consumption is still low compared to neighbouring countries like Bangladesh and Pakistan, which means there’s still a lot of room for growth.
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The industry’s growth is supported by increasing urbanisation, a young population, and rising income levels. Consumers are also becoming more health-conscious, preferring low-sugar options and regionally inspired flavours. These changing preferences will likely guide the next wave of new products.
Overall, the report concludes that India’s soft drink market has great potential and remains a key part of the growing non-alcoholic beverage industry.
