The India beverage market size reached around USD 80.11 Billion in 2025. The market is projected to grow at a CAGR of 6.80% between 2026 and 2035 to reach nearly USD 154.67 Billion by 2035. The market growth can be attributed to the burgeoning demand for functional beverages, including plant-based juices and health drinks. Moreover, the expansion of retail stores and the development of unique packaging solutions, coupled with the increasing trend of health-consciousness, are favouring the market growth.
Base Year
Historical Period
Forecast Period
Coffee is becoming an increasingly important part of the daily routines of Indian customers amid rising disposable incomes, rapid urbanisation, and shifting consumer demands. This is prompting leading corporations like Starbucks Corporation to open 1000 additional retail stores across the country under their long-term growth strategy by 2028, reflecting the growing consumer interest in premium coffee experiences.
E-commerce enables beverage companies to directly sell their products to customers, enabling them to offer exclusive products, create personalised experiences, and build stronger relationships with customers. Hence, the robust growth of the e-commerce sector is driving the India beverage market development. As per the India Brand Equity Foundation, the India e-commerce sector is projected to reach USD 325 billion by 2030 by 2030.
Key players such as Hindustan Coca Cola Beverages are actively investing in the development of innovative beverages such as health-focused, functional, and plant-based drinks to cater to the evolving preferences and tastes of customers. Beverage companies are also incorporating local ingredients such as ginger, turmeric, and mint, among others, into their product offerings to resonate with regional tastes while meeting the rising preference for functional and natural ingredients.
| India Beverage Market Report Summary | Description | Value |
| Base Year | USD Billion | 2025 |
| Historical Period | USD Billion | 2019-2025 |
| Forecast Period | USD Billion | 2026-2035 |
| Market Size 2025 | USD Billion | 80.11 |
| Market Size 2035 | USD Billion | 154.67 |
| CAGR 2019-2025 | Percentage | XX% |
| CAGR 2026-2035 | Percentage | 6.80% |
| CAGR 2026-2035 - Market by Region | West and Central India | 7.5% |
| CAGR 2026-2035 - Market by Region | East India | 7.1% |
| CAGR 2026-2035 - Market by Product Type | Bio-based | 10.3% |
| CAGR 2026-2035 - Market by Distribution Channel | On-Trade | 7.6% |
| Market Share by Region 2025 | North India | 31.2% |
As per the Agricultural and Processed Food Products Export Development Authority, India is currently the world’s 40th largest exporter of alcoholic beverages. The UAE, Tanzania, Angola, Singapore, the Netherlands, Rwanda, and Kenya are its major export destinations. According to the Confederation of Indian Alcoholic Beverage Companies (CIABC), government support for alcoholic beverage producers is expected to increase the nation’s exports to USD 1 billion in the coming years. In 2023-24, exports amounted to USD 389 million, and the country is aiming for a 14%-15% growth in production annually to meet the burgeoning demand for alcoholic beverages globally. Besides, the Indian government is expected to allow alcoholic beverage producers to produce packaging in flexible sizes, charge minimum charges for labour organisations, provide attractive incentives for participation in international exhibitions and fairs, and reimburse levies imposed on other inputs. Enabling alcoholic beverage producers to obtain timely permissions for branding and bottling of alcoholic beverages is expected to favourably shape the India beverage market dynamics.
An increasing number of beverage consumers in India view coffee as a youthful and aspirational drink. It also provides a unique café-like experience at home, which is expected to further propel market growth in upcoming years.
Compound Annual Growth Rate
6.8%
Value in USD Billion
2026-2035
*this image is indicative*
Growing focus on reducing sugar consumption; the emergence of regional brands; increasing consumption of instant coffee; and the shift towards sustainable packaging are the major factors favouring the India beverage market expansion.
As consumers increasingly become health-conscious and aware of the health risks of excessive sugar consumption, the demand for healthier beverage solutions, especially targeted at children, is surging.
Regional brands cater to local tastes and have competitive pricing strategies. They have a strong distribution channel and enjoy a significant presence in semi-urban and rural areas. This is expected to enhance the India beverage market expansion. During the summer of 2023-42, Mala Fruit Products (Maharashtra), Dailee (Tamil Nadu), Davat (Gujarat), and Lahori (Punjab) emerged as some of the most popular regional beverage brands in India. This indicates their strong role in shaping the market dynamics in India.
The growing popularity of instant coffee, especially among younger generation and urban consumers, as a daily convenient beverage is boosting the India beverage market revenue. The introduction of flavoured varieties such as vanilla, caramel, and hazelnut and speciality blends of instant coffee has further increased its consumption among consumers seeking innovative beverages.
With growing environmental concerns among consumers, beverage companies are increasingly adopting eco-friendly practices such as sustainable sourcing of ingredients, utilisation of energy-efficient solutions, and deployment of eco-friendly packaging solutions to improve their sustainability profiles.
Shift towards sustainable packaging
Sustainable packaging is playing a significant role in the growth of the market by aligning with growing consumer demand for environmentally responsible products. As consumer awareness of various environmental issues increases, they are seeking recyclable, biodegradable, or reusable packaging solutions for beverages. This has prompted companies to switch to paper-based cartons, plant-based plastics, and glass bottles, among other eco-friendly packaging solutions, to reduce waste and attract eco-conscious buyers. This has built consumer trust in different brands and is driving younger generations towards more environmentally responsible brands, hence creating a favourable India beverage market outlook.
Rise of regional brands
Growing incidences of heatwaves and rising temperature levels in the country have prompted beverage companies to introduce innovative flavours. Between March and May 2024, the penetration rate of regional beverage brands across India rose to 7%, a year-on-year surge from 5% in 2023. Based on market analysis, the consumer reach of regional beverage brands in urban and rural areas increased to 10% and 5.3% respectively, thereby facilitating the India beverage market development. For instance, the demand for Dailee, a regional beverage brand of Tamil Nadu, witnessed a 2x growth among consumers in 2024.
The EMR’s report titled “India Beverage Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Breakup by Product Type
Breakup by Distribution Channel
Breakup by Region
| CAGR 2026-2035 - Market by | Region |
| West and Central India | 7.5% |
| East India | 7.1% |
| North India | XX% |
| South India | XX% |
Based on region, the market is segmented into East India, West and Central India, North India, and South India. Over the forecast period of 2026-2035, the market for beverages in West and Central India is expected to grow at a CAGR of 7.5% due to the growth of regional beverage brands. East India is expected to grow at a CAGR of 7.1% between 2026 and 2035 due to the rising consumption of ready-to-drink tea and coffee products.
Based on distribution channel, the market is categorised into on-trade and off-trade. The India beverage market analysis suggests that on-trade consumption is expected to grow at a CAGR of 7.6% between 2026 and 2035 due to the rising consumption of alcoholic beverages, while off-trade consumption is expected to grow steadily with the shift towards home-entertainment.
By focusing on sustainability, innovation, and product diversification, Indian beverage manufacturers are driving business growth. Major players are launching new low-calorie, health-focused beverages in new flavours to cater to the burgeoning demand for natural and functional products. Rising investments to boost supply chain management and the establishment of strategic partnerships are expected to further increase the India beverage market revenue in the coming years.
Prime Hydration LLC was founded in 2022 and is headquartered in London, United Kingdom. It specialises in making a wide range of sports and energy drinks, apart from drink mixes.
Suntory Holdings Limited was founded in 1899 and is headquartered in Tokyo, Japan. It specialises in producing alcoholic beverages like beer and wine, and its annual revenues amount to USD 20.9 billion.
Reliance Retail Limited was founded in 2006 and is headquartered in Mumbai, Maharashtra. It is ranked as one of the world's top 100 retailers, which records over 3 million transactions daily.
The Coca-Cola Company initially began in May 1886 and later grew into a renowned soft drinks company with a market presence in around 200 countries. It is headquartered in Georgia, United States.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other players included in the India beverage market report are Nestle S.A., Pepsico Inc., Heineken N.V., Red Bull GmbH, Diageo plc, and Anheuser-Busch N.V., among others.
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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2025, the market reached an approximate value of USD 80.11 Billion.
The market is projected to grow at a CAGR of 6.80% between 2026 and 2035.
The market is estimated to witness healthy growth in the forecast period of 2026-2035 to reach a value of around USD 154.67 Billion by 2035.
The different regions considered in the market report include East India, West and Central India, North India, and South India.
The different types of products include alcoholic beverages, non-alcoholic beverages, and bio-based beverages.
The different distribution channels are on-trade and off-trade.
The major market trends include the emergence of regional brands, increasing consumption of instant coffee, and the shift towards sustainable packaging.
Key players in the market are Nestle S.A., Pepsico Inc., The Coca-Cola Company, Heineken N.V., Red Bull GmbH, Diageo plc, Anheuser-Busch N.V., Suntory Holdings Limited, Reliance Retail Limited, and Prime Hydration LLC, among others.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Product Type |
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| Breakup by Distribution Channel |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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