1.1 lakh crore market is changing: cold drinks lag behind lassi-buttermilk, fourfold growth in sales

This year’s record breaking summer cost the country Rs 1.1 lakh crore. Has changed the mathematics of soft drinks market. Buttermilk, lassi and probiotic drinks are making their place along with cold drinks in the refrigerators of grocery stores and on quick-commerce platforms. This change is especially visible among young consumers and urban households, who are preferring health and protein-based dairy beverages over carbonated drinks. According to Jayateertha Chari, Managing Director of Mother Dairy, dairy products like lassi and buttermilk have registered a growth of more than 40% this season. We are seeing double-digit growth on the quick-commerce platform itself. Heritage Foods CEO Srideep Kesavan says that the contribution of dairy beverages to the company’s revenue has doubled in three years. At the same time, Akshali Shah, Executive Director of Parag Milk Foods, said that India’s packaged food and beverage industry is worth Rs 9.51 lakh crore, which will reach Rs 14.27 lakh crore by 2030. Will be done. Dairy drinks market to reach Rs 4.23 lakh crore by 2031. It is estimated to reach. That is why the company is focusing on products like protein, health, wellness. There was a growth of 109% in this business of Parag on annual basis. Keeping this consumer shift in mind, we launched Avatar Protein Cold Coffee. The 15 gram protein pack is designed to bring convenience and nutrition together. Mother Dairy is introducing new variants like Probiotic Buttermilk, Pudina Buttermilk at an entry price of ~10. New ‘growth engine’ for FMCG companies: Beverages have now become the biggest growth driver for big FMCG companies like Nestle, HUL, Tata Consumer and Dabur as compared to ketchup and mayonnaise. Hindustan Unilever: Coffee and Horlicks-Boost segments recorded strong double-digit growth. Tata Consumer: Ready-to-drink portfolio jumped 23%. Dabur: Coconut water business doubled and real juice grew by 26%. PepsiCo (Varun Beverages): ‘Low-sugar’ and ‘no-sugar’ products accounted for about 63% of total volume sales in the March quarter. The reason for increase in sales of lassi and buttermilk is the tax difference of 40% GST on carbonated drinks and 5% GST on dairy beverages. Due to this 35% difference, dairy companies have lost ₹10. Are able to sell products of Rs. Health and Nutrition After Covid, consumers want health along with taste. Lassi-buttermilk is a ‘healthy alternative’ due to being probiotic and low-sugar. Drinks like Kokum, Jaljeera, Aam Panna and Buttermilk have re-entered the market with modern-traditional hygienic packaging. Market Trend: Carbonated Drinks vs Desi Beverages Category – Market – Projected – Annual Growth Soft Drinks – 111.81 – 168.13 – 4.64% Lassi – 5.60 – 24.57 -16.96% Buttermilk – 19.33- 101.18- 18.16% (Source: IMARC. Market Size in thousand crore rupees)



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