According to a survey, the consumption of cold beverages, including soft drinks, squashes, powdered mixes, and packaged juices, has seen a remarkable growth of 47% in May, compared to 38% in 2019. This in-home penetration, indicating the number of households consuming these products, is significantly higher than in any pre-pandemic period. Average household consumption of soft drinks has also increased from 6.5 litres in 2019 to just over 7 litres annually.
Kantar, a marketing data and analytics company, revealed that the cold beverage sector has made important strides in terms of purchase frequency and quantity, signifying a deepening habit among consumers. Bottled soft drinks are the most popular, reaching almost all cold beverage households with a penetration rate of 45%. In comparison, juices and squashes have lower penetration rates of 5% and 6%, respectively.
Despite being a seasonally influenced sector, the cold beverage industry has seen a penetration rate of 37% in March–May this year, which is close to the annual in-home figure in 2019. The pandemic has had a notable impact on consumer behaviour, leading to an increased demand for larger stock-keeping units (SKUs) and shared packs for in-home consumption and gatherings.
Frooti, a popular beverage brand, has experienced a surge in sales of bigger packs due to consumers seeking value for money and optimal spending in their purchasing decisions. However, the milder summer and unseasonal rains in the north have caused a slight slowdown in the average purchase quantity of cold beverages during the March–May 2023 period.
Southern states have continued to be strong markets for the cold beverage category, while northern markets, especially Delhi and Punjab, have shown a decline in purchases. The March-May quarter is crucial for beverage companies, contributing close to 40% of their annual sales.