Juice:

Hit before Covid

Growing health awareness
Local Flavors introduced to take advantage of local preferences
Healthy flavors: Coke: Vita Punch & Nutri Force (Minute Maid)

Rural Area focus:

Demand increase owing to Reverse Migration

Covid: Tried to cut down on expenditure- gave rise to local brands
Pepsi & Coca cola listed on grameen e-store: digital inclusion of rural india

Recovery:

Demand set to return owing to health awareness

Convenience on the go (as urban lifestyle resumes)
Partnerships on healthy immunity boosting products (ITC with Amway)
Rise of coconut water ( but Coca cola discontinued has no product)
health-conscious consumers who want juices that are not made from concentrate.

Refer numbers

Soft Drinks

- on-trade establishments: loss, majorly unsold

- Larger bottles and multipacks were in demand, however, especially in the case of juices and
bottled water (growing awareness)
- To Increase Immunity: Products fortified with minerals, low sugar and preservative content,
gained attention
- maintained purchases despite lockdown restrictions: carbonates and concentrates,
benefiting from the availability of bulk pack sizes at low prices.

Increase in Demand in Rural Areas- Reverse Migration/ Grameen E stores/ ensure last mile delivery

Coca-Cola has decided to scrap many drinks brands across soft drinks categories

Companies entered into partnerships with delivery apps- short-term strategy

The focus here was to ensure product availability despite lockdown restrictions, in order to prevent
consumers switching to competitors’ brands. However, this is not sustainable in the long term, due
to the high charges of these platforms

Growth for off trade fuelled by in-home consumption, at least in the next few years.

seek to reduce the sugar content

Millennials will drive demand for categories such as 100% juice, functional bottled water, and
kombucha, which benefit from healthier attributes compared with alternative soft drinks
Next: need to focus on offering products with healthy attributes, such as low sugar content, and
which are offered in convenient packaging formats.

Consumers look for Greater value; likely to benefit e-commerce sales of bulk pack sizes, with
consumers appreciating the convenience of having larger presentations delivered direct to their
home.

Carbonated:

Off-trade value sales concentrated between Coca-Cola India Pvt Ltd and PepsiCo India Holdings Pvt
Ltd, holding steady value shares of 48% and 29% respectively in 2020

Company value shares remained largely unchanged in the carbonates category in 2020, although
smaller players did make some gains as consumers sought cheaper products

Health factors to become increasingly important

India is a vast country, with different consumer profiles and taste preferences in every state. There is
already evidence of hyper-localisation being implemented by these larger players + price sensitive
segment

Carbonates is the largest segment of the soft drinks market in India, accounting for 44.2% of the
market's total value

However, market niches can be exploited by new entrants. Some of the larger players have already
done this by catering for local tastes. Additionally, changing consumer preferences cause a shift
towards health-oriented wellness drinks.

Disposable income

India has a large young consumer base which presents significant growth opportunities over the
coming years.