
India's soft drink industry eyes 10%+ growth in 2025; larger firms gain from easing local competition
India's soft drink market is poised to recover to a growth rate of over 10 per cent in 2025, after witnessing a slowdown this year due to erratic weather conditions, according to a report by Systematix Institutional Equities.
As per news agency ANI, the report projects strong medium-term growth for the Carbonated Soft Drinks (CSD) segment, which has historically expanded at an annual pace of 13–14 per cent.
The CSD industry, currently valued at around ₹30,000 crore, is expected to benefit from improving weather conditions and easing regional competition. Industry experts cited in the report believe a return to double-digit growth is likely as market conditions normalise.
The Indian beverage market mainly comprises Liquid Refreshment Beverages (LRBs), which include carbonated drinks, bottled water, juices, energy drinks, and sports drinks.
Of these, soft drinks account for 40–45 per cent of the total market, energy drinks for 8–10 per cent, juices for around 5 per cent, and sports drinks make up 1–2 per cent. The remainder is contributed by bottled water.
Currently, the market is evenly split between local players and larger brands such as Bisleri, Kinley, Aquafina, and Bailey.
However, the balance is gradually tilting towards the latter as they benefit from broader distribution networks and brand recall.
Post-GST implementation, regional competition has reduced, paving the way for bigger brands to capture market share. Popular local drinks such as Bindu-Jeera in the South and Karachi Soda in the North, which previously dominated their respective categories with a 75–80 per cent share, are reportedly losing ground.
In Tamil Nadu, for instance, the report stated that apart from Bovonto, no other prominent local brand remains visible.
The report also noted that per capita beverage consumption in India remains low compared to regional peers, including Bangladesh and Pakistan, suggesting ample headroom for expansion.
India's soft drink industry is driven by growing urbanisation, a youthful demographic, and rising disposable incomes. There is also a visible shift in consumer preferences towards healthier options, low-sugar variants, and regionally inspired flavours, trends that are expected to shape the next phase of innovation and product development.
As per ANI, the report highlights that with favourable demographic and consumption patterns, India's soft drink industry remains one of the most promising segments in the non-alcoholic beverage space.
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