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Indian soft drinks industry poised for recovery
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Saturday, 14 March, 2026, 13 : 00 PM [IST]
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Our Bureau, New Delhi
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The Indian soft drinks industry is expected to witness a healthy recovery in 2026, driven by evolving consumer preferences, growing demand for healthier beverages and favourable demographic trends, according to the latest annual report of Varun Beverages.
The industry, which faced disruptions in 2025 due to adverse weather conditions that impacted peak-season consumption, is now expected to rebound as demand fundamentals remain strong. The report noted that carbonated soft drinks continue to dominate the market, but there is a clear diversification in consumption patterns with increasing popularity of non-carbonated beverages.
Non-fizz drinks such as juice-based beverages, sports drinks and energy drinks are witnessing growing demand as consumers increasingly look for healthier and functional beverage options. Beverage companies are responding to this shift by expanding their portfolios with low- and no-sugar drinks, as well as products made with natural and organic ingredients.
According to the report, the rising focus on health and wellness is encouraging companies to innovate with differentiated offerings, including juice-infused beverages and functional drinks aimed at health-conscious consumers. These innovations are expected to keep the category relevant and support long-term growth.
Industry growth is also expected to be supported by India’s favourable demographics, rising disposable incomes and rapid urbanisation. Increased availability of beverages across retail channels, along with investments in manufacturing capacity, distribution networks and cold-chain infrastructure, is further strengthening the sector’s growth outlook.
The company added that India’s relatively low per-capita consumption of soft drinks compared with global markets provides significant headroom for expansion. As consumption patterns continue to evolve and market penetration deepens across urban and rural regions, the industry is expected to experience sustained growth in the coming years.
With stronger summer demand anticipated and companies focusing on product innovation and distribution expansion, the Indian soft drinks sector is poised to regain momentum and capture emerging consumption opportunities.
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