With a population skewed towards India's youth, particularly those aged between 18 and 40, the the non-alcoholic beverage sector in India presents a significant opportunity for manufacturers to introduce a diverse range of products. But Indian producers face major barriers to providing enough product. Is this door opening for Australia?
The non-alcoholic beverage sector in India is experiencing robust growth, driven by a youthful and increasingly affluent demographic, along with the availability of abundant raw materials. By 2028, the domestic market is expected to swell to US$21.5 billion, with a projected Compound Annual Growth Rate (CAGR) of 6.72 percent over the next four years. The surge in health consciousness and rising disposable incomes are directing consumer preferences towards a diverse array of healthier alternatives.
Despite this domestic growth, India lags significantly in global trade, holding a meagre 57th position. The market is dominated by Austria, Germany, and the US. Challenges such as high taxes, infrastructure limitations, and a tax regime misaligned with global demand trends hinder India's participation in the global market.
Internationally, the non-alcoholic beverage market is witnessing rapid expansion, with emerging players and innovative products entering the fray. From carbonated soft drinks to juice-based beverages, sports drinks, and organic options, companies are diversifying their offerings. The global market is forecasted to sustain steady growth, reaching US$2.2 trillion by 2026, offering India a significant opportunity to tap into the rising global demand by leveraging its ample raw material resources.
In 2022, global imports of non-alcoholic beverages amounted to US$48.5 billion, with the US, Germany, UK, Netherlands, and France leading the pack. India's population, skewed towards younger consumers aged 18 to 40, presents ample prospects for introducing a variety of products. Moreover, India's per capita consumption of non-alcoholic beverages remains considerably lower than that of other developing nations, indicating room for growth.
These beverages play multifaceted roles, from meeting hydration needs to aiding in post-exertion recovery and maintaining bodily functions in various conditions. The trend towards healthier options aligns with the growing demand for mindful choices, promising continued expansion in the industry.
Despite being a leading producer of key raw materials like banana, mango, and sugar, India's global exports in non-alcoholic beverages do not reflect its potential. The trade deficit highlights the need for strategic initiatives to enhance India's presence in global markets. With concerted efforts and alignment with global trends, India can carve a more significant niche in the international non-alcoholic beverage trade landscape.
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