India’s soft drink industry is expected to bounce back strongly next year, clocking over 10% growth despite weather-related disruptions that impacted sales in 2025, according to a report by Systematix Institutional Equities.
The carbonated soft drinks (CSD) segment, currently valued at ₹30,000 crore, is projected to post robust double-digit growth over the medium term. Historically, the CSD market has grown at a rate of 13–14% annually, and this momentum is likely to resume as climatic conditions stabilize and consumption patterns normalize.
The broader Liquid Refreshment Beverages (LRB) market in India includes categories such as carbonated soft drinks, packaged water, juices and nectars, energy drinks, and sports drinks. Soft drinks alone account for 40–45% of the LRB segment, followed by energy drinks at 8–10%, juices at 5%, and sports drinks at 1–2%. The remaining share is held by packaged water.
The report highlighted that India’s per capita beverage consumption remains significantly lower than that of neighboring countries such as Bangladesh and Pakistan, indicating considerable room for market expansion. Factors such as rising disposable incomes, rapid urbanization, and a young consumer base are driving long-term growth across beverage categories.
The Indian soft drinks market remains equally split between multinational giants and local players. Major national brands include Bisleri, Kinley, Aquafina, and Bailey, while regional drinks like Bindu Jeera in the South and Karachi Soda in the North had previously held dominant shares of up to 75–80% in their respective markets. However, the report notes a shift in market dynamics, with large players gradually gaining ground as competition from local and regional brands begins to ease, particularly after the implementation of GST.
“In Tamil Nadu, for instance, Bovonto remains the only prominent regional brand still maintaining a strong presence,” the report stated, pointing to increased consolidation in several regional markets.
Systematix also noted a growing consumer preference for healthier, low-sugar beverages and regional flavour profiles. This is prompting innovation and product diversification across both global and domestic companies, further intensifying competition in India’s ₹3 lakh crore soft drink industry.
With weather disruptions expected to be less severe next year and consumer demand continuing to rise, the industry appears poised for a strong rebound in 2026.