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From roadside stalls to retail shelves: Why traditional beverages are moving to packaged formats
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Thursday, 25 June, 2026, 16 : 00 PM [IST]
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Prabhu Gandhikumar
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Something is quietly changing in India’s beverage consumption landscape. Drinks that have long been part of everyday informal consumption - nimbu paani, sherbet, jaljeera, buttermilk and other regional refreshers - are increasingly appearing in packaged retail and quick-commerce channels. What was once largely unorganised roadside consumption is gradually being formalised into branded formats. The shift is less about new beverages entering the market and more about familiar drinks finding new distribution systems.
For decades, traditional beverages were positioned as the lowest-cost refreshment option, commonly consumed from street vendors and small carts. However, this dynamic is evolving alongside gradual increases in disposable income across lower and middle-income households. Consumers at the base of the pyramid are increasingly open to packaged alternatives when pricing remains accessible. The decision-making is no longer driven only by affordability, but also by consistency, hygiene, and predictability of quality.
An important factor influencing this shift is the growing awareness of food safety and hygiene risks in unorganised retail environments. While informal beverages remain widely consumed, they often involve inconsistent water quality and preparation conditions. This has led to greater sensitivity among consumers regarding potential health risks associated with unbranded consumption. In several cases, the potential cost of illness or missed work is being factored into purchase decisions, particularly among daily-wage earners and small-income households.
At the same time, global beverage companies have traditionally focused on carbonated drinks and select juice categories, leaving limited structured offerings in traditional Indian beverage formats such as aam panna, jaljeera, masala chaas, sattu-based drinks, and regional refreshers. This gap has created space for regional and domestic players to experiment with packaged versions of culturally familiar beverages.
Rather than competing directly with carbonated soft drinks, packaged traditional beverages are increasingly serving the informal consumption market. Industry participants describe this as a gradual formalisation of existing consumption patterns, where beverages earlier consumed in unorganised formats are now being offered in sealed and standardised packaging. This transition has been supported by the expansion of modern retail, improving cold-chain infrastructure, and the rapid growth of quick-commerce platforms, which have enabled wider distribution of ready-to-drink products.
Despite early growth, scaling packaged traditional beverages continues to depend on key structural factors such as pricing, last-mile distribution, retail penetration, and repeat purchase behaviour. Success in this category is closely linked to maintaining affordability while ensuring consistency across geographies. Availability in kirana stores remains critical, alongside increasing visibility on digital grocery and quick-commerce platforms.
Market indicators suggest steady traction in ready-to-drink and traditional beverage categories. Packaged lassi and buttermilk continue to grow steadily, while newer segments such as jeera-based drinks, aam panna, kokum beverages, sattu drinks, and herbal refreshers are gradually expanding shelf presence. Quick-commerce platforms are also accelerating discovery and trial, particularly in urban and semi-urban markets, supporting the broader evolution of this category.
(The author is CEO & co-founder at TABP)
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