As the battle for cola supremacy continues, with Reliance’s Campa Cola emerging as a formidable competitor, another trend is gaining momentum: the surge in demand for healthier beverages. Consumers are increasingly prioritizing wellness, prompting beverage companies to innovate with options that boast low or no sugar content.

The Rise of Health-Conscious Beverages

The shift towards health-focused drinks is evident across various brands, with an array of options now available. From flavored tonic waters to sugar-free sodas and juices, the market is responding to changing consumer preferences.

• Polka Pop, a sparkling water brand launched in 2021 by Gaurav Khemka, is optimistic about the upcoming summer season. Khemka notes that as more individuals reduce their sugar intake, demand for their products is expected to rise significantly. “We’ve experienced a fourfold increase in sales since our debut and forecast a fivefold growth by 2025,” he shared. The brand produces 150,000 bottles each month, available on various quick commerce platforms.

• Mumbai’s Habhit Wellness offers a diverse range of drinks, including coconut water and basil seed beverages, marketed under names like Alpha 8 and Coco Nirvana. Their innovative approach caters to the growing health trend.

Innovative Offerings in the Beverage Market

Paper Boat, known for its zero-sugar sparkling waters in apple and cranberry flavors, is another player in this expanding market. Meanwhile, Dadu Fresh, a Gujarat-based company, specializes in unique fruit juices, including flavors like mangosteen and lychee, and has successfully established a global presence across 90 countries.

Bharat Bhalla, co-founder of Yu Foods, emphasized the potential of coconut water in India’s hot climate. “In the next five years, we expect coconut water to become a national favorite,” he stated. Their 100% fruit juices, free from additives, have quickly gained traction, achieving double-digit market shares in just three months.

• Their future plans include ramping up production to one million units per month, targeting a 40% market share in the coconut water segment via quick commerce.

Growth Projections in the Beverage Sector

Dadu Fresh aims for a 20% growth rate this year, with plans to expand its distribution across major cities in Gujarat. As director of R&D Sachin Bhuva noted, the brand is innovating by adding new flavors like jackfruit and tamarind to its lineup.

In a notable industry move, PepsiCo is set to acquire prebiotic soda brand Poppi for $1.95 billion, further solidifying its foothold in the health-conscious beverage market. At the same time, Coca-Cola is expanding its Simply brand to include prebiotic soda options.

The global market for better-for-you beverages is projected to grow by $484 million by 2034, with the no-added-sugar juice segment experiencing remarkable growth of 110% since last year. In 2024, sales of low-sugar and no-sugar beverages in India are expected to double to Rs 700-750 crore, reflecting a significant shift in consumer habits driven by health concerns.

Expert Insights on Health Drinks

Dr. Anshu Alok, an endocrinology and diabetes specialist, cautions about some health drinks that may contain questionable additives. “While they can serve as a healthier alternative to sugary sodas when consumed occasionally, the long-term safety of added ingredients remains uncertain,” he advised.

As smaller brands emerge to cater to niche markets focusing on organic and natural beverages, traditional FMCG players are innovating to keep pace with these changes.

The Expanding Non-Alcoholic Beverage Market

The Indian non-alcoholic beverage industry, including giants like PepsiCo, Coca-Cola, and Campa, is valued at over Rs 60,000 crore. Notably, Varun Beverages, PepsiCo’s bottling partner, reported that low-sugar and no-sugar products made up 53% of its sales volumes in 2024, up from 42% in 2023.

Coca-Cola’s Coke Zero Sugar saw a 13% increase in case volumes globally in the last quarter of 2024. Their low- and no-calorie offerings, including Sprite Zero, are tapping into the growing interest in hydration and wellness.

Dabur India’s Réal brand recently launched a campaign promoting its no-added-sugar fruit juices, with marketing head Monisha Prasher emphasizing the importance of innovation to meet evolving consumer preferences.

Future of Healthy Beverage Consumption

Even coffee chains are joining the movement; Barista is working on sugar-free variants of its frappes, anticipating a 20-25% growth in overall business as demand for health-conscious options rises.

As more consumers become health-conscious, the beverage industry is poised for significant transformation, reflecting a broader cultural shift towards wellness and mindful consumption.