Revenue in the soft drinks segment is expected to amount to $8.85 billion by the end of 2023, as per market research firm Statista.
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Typically the onset of summer season is packed with a bevy of beverage ads featuring a strong line-up of celebrities. This year has been no different. From Shah Rukh Khan promoting Thums Up, Kiara Advani replacing Katrina Kaif as the brand ambassador for Slice, this summer the list seems to be if anything but expanding. “The soft drinks category has stagnated for a period of time. It has suffered from the negative backlash due to sugar and empty calories. In fact, the rest of the beverage category consisting of healthy juices have been growing. There are currently two categories one healthy and another empty category and soft drinks fall under the latter,”Harish Bijoor, brand expert and CEO, Harish Bijoor Consults, a brand consulting firm.
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Industry experts opine that in order to remain relevant, the soft drink category has to promote itself on the basis of lifestyle. Interestingly, with companies heavily investing in promotion of this category of drinks, it will definitely result in volume of sales. “With positive momentum in Coca-Cola’s India growth strategy, we are consistently amplifying the portfolio to include more packaging size options, and a broader brand portfolio,” a Coca-Cola company spokesperson told Brandwagon Online.
To be sure, the size of bottles have definitely been a result behind the uptake, the affordable price too have played a role. For instance, typically a 250 ml bottle (PET) costs Rs 20 and it goes upwards from there. Availability too has played a crucial role. Earlier if these drinks were available at mom-pop shops and kirana outlets, besides modern retail shops today this category is served by a clutch of e-commerce platforms including the likes of Zepto, Blinkit, among others.
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Add to that entry of new players such as Campa by Reliance Retail. “By presenting Campa in its new avatar, we hope to inspire consumers across generations to embrace this truly iconic brand and trigger a new excitement in the beverage segment. While older family members will have fond memories of the original Campa and cherish the nostalgia associated with the brand, younger consumers will love the crisp refreshing taste,” a RCPL spokesperson said at the time of the launch.
Revenue in the soft drinks segment is expected to amount to $8.85 billion by the end of 2023, as per market research firm Statista. The market is expected to grow annually by 5.40% (CAGR 2023-2027). By 2027, 22% of spending and four percent of volume consumption in the soft drinks segment will be attributable to out-of-home consumption – for instance – bars and restaurants.
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The average volume per person in the soft drinks segment is expected to amount to 4.89 litre in 2023, as per the report in Statista. And it is precisely due to this reason that companies have been pumping money to promote these brands through the aid of various celebrities. For example, PepsiCo India rolled out a campaign for Nimbooz called, ‘Chatak Nimbooz, Gatak Nimbooz’ featuring actress Mithila Palkar. “Our line-up of ambassadors enjoys a strong national and regional influence on the youth that cuts across geographies and aims to connect with consumers across the nation, be it Ranveer Singh and Yash for Pepsi, Kiara Advani for Slice, Rashmika Mandanna for 7UP to Akshay Kumar for Sting, among others”, PepsiCo India spokesperson, said in an email response.
One thing is for sure that for a category which is there and yet-not-there, soft drinks are not going to run out of fashion. As they say, ‘may the best man – in this case the brand win’.
