Driven by a trend towards healthier options and convenience, ready-to-drink punch and mocktail brands, boasting ‘natural’ ingredients ranging from fruits and roots to herbs and spices, are entering India’s beverage market.
Moving away from alcoholic indulgences and fizzy aftereffects, revelers are embracing fruity blends. A Statista report suggests that the worldwide non-alcoholic beverage market is poised for a 2.3% volume growth this year. By 2027, it’s expected to soar to 944.6 billion liters, with a compound annual growth rate (CAGR) of 4.6% from 2023 to 2027. Presently, India hosts a market with over 200 contenders in the ready-to-drink juice, mocktail, and non-alcoholic beverage segment.
Producers are capitalizing on millennials and health-conscious Gen Zs, who eagerly embrace all things natural and organic.
“Post-Covid, there has been a notable shift towards healthier living, prompting a surge in demand for non-alcoholic options. Lifestyle adjustments have heightened consumer awareness of the harmful effects of alcohol, yet there persists a desire for non-alcoholic beverages that offer similar taste experiences. This trend is particularly prominent among consumers aged 25 to 34,” noted Neha Singh, co-founder of Tracxn, a startup information and market trends provider.
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Singh highlighted that in recent years, a plethora of new brands have emerged to cater to the growing demand, with India standing out among other leading nations in terms of funding raised in this sector. The market is witnessing significant interest, with startups securing fresh funding from angel investors, while FMCG giants are eyeing stakes in these ventures.
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For instance, Bengaluru-based Swizzle secured seed funding of nearly $67,000 from angel investors Akshay Singhal and Monika Rao in February. Coolberg received $1.1 million in its latest funding round from institutional and angel investors, including Ashok Kumar Damani. Last September, institutional investors such as Emami and Venture Catalysts, along with nine unicorns, invested an undisclosed amount in AloFrut.
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According to data from Tracxn, leading players in this domain secured over $33 million in funding from institutional and angel investors between 2019 and 2024.
Harsha V Agarwal, Vice Chairman and Managing Director of Emami, resonates with similar sentiments. “We see immense growth in the segment,” she added, noting that “health and wellness” is currently the buzzword for consumers.
“Consumers are not just looking for products that are beneficial for their health, but also those that are ethically produced, with minimal environmental impact,” stated Deepender Singh, co-founder of the ready-to-drink mocktail brand Swizzle. Swizzle, which experienced a remarkable 210% growth in FY23, aims to achieve a projected revenue of INR 12 crore by the end of FY25.
Echoing the trend, Rishabh Gupta, promoter of Axiom Ayurveda, which produces canned fruit mocktails under the brand AloFrut, draws parallels between the surge in this market and the demand for energy drinks. “Energy drinks have significantly expanded their market presence in India over the past decade, and I anticipate a similar growth trajectory over the next five years. I envision the fruit or natural ingredient-based mocktail market following a comparable growth trajectory to where energy drinks currently stand within the next five to seven years,” stated Gupta. “Post-Covid, there has been a rise in house parties, and people are seeking alternatives to cola. Ready-to-drink mocktails offer them a viable option, without the need for a bartender,” he further explained.
Vaishali Mehta, co-founder of Swa, a Bangalore-based women-led initiative specializing in artisanal syrups, expresses optimism about the growing presence of natural concoctions in social gatherings. Mehta highlights that in India, many beverages rely on artificial concentrates and preservatives for their supposed exotic flavors. “Our company sources locally grown ingredients such as jamun, jackfruit, kokam, bird’s eye chili, and passion fruit for our beverages,” she emphasized.
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