India’s soft drinks industry is expected to recover strongly in 2026, driven by rising demand for non-carbonated and health-focused beverages, according to the annual report of Varun Beverages Ltd, the largest bottling partner of PepsiCo.
While carbonated drinks still dominate, consumers are increasingly shifting toward juice-based drinks, sports beverages, energy drinks, and other non-fizz options due to greater health awareness and wider product availability.
Beverage companies are expanding portfolios with low- or no-sugar products, functional drinks, and beverages made with natural or organic ingredients to attract health-conscious consumers.
The sector’s growth outlook is supported by India’s young population, rising disposable incomes, urbanization, and low per-capita consumption, which leaves significant room for expansion.
According to Ravi Jaipuria, the industry has strong long-term potential, supported by expanding distribution networks and deeper penetration into semi-urban and rural markets.