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Indian beverage industry enters new growth phase
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Wednesday, 19 August, 2026, 08 : 00 AM [IST]
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Anurag More, Mumbai
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Indian beverage industry is entering a new phase driven by growing consumer interest in health, functionality, clean ingredients and lower-sugar alternatives, according to Harshvardhan Chauhan, Founder & CEO, Mountain Tribe. He believes the next stage of growth will be shaped by the convergence of taste, function and transparency, with categories such as fermented beverages, functional drinks and natural-ingredient beverages gaining wider acceptance.
Chauhan said consumers are becoming more conscious of sugar and ingredients without being willing to compromise on taste. He expects gut health to move beyond a niche wellness conversation and become part of everyday food and beverage choices. At the same time, he noted that consumers are likely to scrutinise functional claims more closely, increasing the need for credible science and transparent communication.
On the regulatory environment, Chauhan said India’s food and beverage framework is becoming more structured, which is positive for the emerging category. However, he called for greater clarity and standardisation around fermented and functional beverages, including definitions, permissible claims, probiotic communication, labelling and consumer education.
According to Chauhan, a clear, science-led regulatory framework would enable responsible brands to innovate while helping consumers distinguish genuine functional propositions from exaggerated claims.
New facility to support national expansion
Mountain Tribe’s new manufacturing facility near Saputara, Gujarat, has a production capacity of up to 10 lakh cans per month. Chauhan said the facility will provide the infrastructure needed for the company to transition from a growing kombucha brand into a national functional beverage business.
The company is already present across more than 2,000 retail touchpoints. The increased manufacturing capacity is expected to support expansion across existing and new markets through modern trade, general trade, quick commerce, cafés, restaurants, hospitality and direct-to-consumer channels.
“Our objective is not simply to put more cans into the market, but to make kombucha significantly more accessible to Indian consumers,” Chauhan said.
He added that establishing a dedicated kombucha manufacturing facility presented technical and operational challenges because fermentation is a biological process that requires close control of temperature, acidity, flavour development and natural carbonation.
The key challenge, he said, was to translate a process traditionally associated with craft and small-batch production into a scalable and controlled manufacturing environment without compromising the character of kombucha. The company consequently focused on fermentation systems, hygiene, process control, consistency and scale.
Focus on quality and food safety
Chauhan said consistency across batches begins with control over the entire production process, from raw material and fermentation culture quality to brewing, fermentation, flavouring, natural carbonation, filling and finished-product checks.
Standardised processes, controlled fermentation and batch-level quality checks are used to maintain consistency in taste and functional characteristics. He added that food safety remains a non-negotiable priority, with the company seeking to combine the authenticity of fermentation with the process discipline of a modern beverage manufacturing operation.
Zero-waste approach at Saputara plant
Sustainability has also been incorporated into the new facility’s operating model. According to Chauhan, the plant follows a zero-waste approach, with residuals from kombucha production being put to productive use.
The facility is surrounded by a 20-acre mango plantation, while tea and SCOBY residuals generated during production are processed into organic fertiliser for the surrounding mango groves. The approach creates a circular system in which production residuals are converted into agricultural inputs.
The company also plans to install a comprehensive solar power system at the facility, with the aim of reducing dependence on conventional energy sources as production scales.
Positioning kombucha as an everyday beverage
With competition increasing in the functional beverage segment, Chauhan said Tribe’s differentiation lies in the combination of authentic fermentation, Indian relevance and a contemporary brand experience.
Rather than positioning kombucha solely as a wellness drink, the company aims to make it relevant across everyday consumption occasions, including meals, post-workout refreshment, social occasions and as an alternative to conventional soft drinks.
The brand’s flavours, communication and consumer experience have been developed with Indian consumers in mind, while its product philosophy remains centred on authentic fermentation and clean ingredients.
Cafés, restaurants and fitness spaces key to category growth
Chauhan said partnerships with cafés, restaurants, fitness chains and hospitality businesses are important for expanding kombucha consumption because the category still needs to be experienced by many consumers.
Such partnerships allow consumers to discover kombucha in familiar settings and can help move the beverage beyond its perception as a niche health product. Tribe aims to build consumption occasions ranging from post-workout refreshment and café visits to restaurant dining and at-home consumption.
The company is also using digital marketing, creator collaborations, education, humour and community-led initiatives to connect with younger consumers. Chauhan said the strategy is focused on making kombucha and fermentation culturally relevant rather than communicating only functional benefits.
National expansion remains immediate priority
While international markets are being evaluated, Chauhan said Tribe’s immediate priority is to build a strong national presence in India. The company intends to approach exports strategically, taking into account market-specific regulations, cold-chain requirements, consumer preferences and product suitability.
Over the next three to five years, the company plans to scale manufacturing, deepen its presence in existing markets and expand into new cities and channels, including retail, modern trade, quick commerce, foodservice, hospitality and D2C.
Chauhan said the larger ambition is not only to grow Tribe but also to help build India’s fermented and functional beverage category. The company ultimately aims to make kombucha an everyday beverage choice for a broader section of Indian consumers, combining taste with what consumers perceive as better-for-you attributes.
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