Non-alcoholic drinks can be classified into fruit drinks and
soft drinks. Fruit drinks include drinks such as fruit juices
and squashes. Softdrinks can be segmented on the basis of
carbonation, flavor type or place of consumption. Based on
carbonation, soft drinks are principally classified into
carbonated and non-carbonated drinks. While the carbonated
drinks mainly include Cola, orange and lemon, the non-carbonated
drinks include mango flavors. Cola products account for over 60%
of the total soft drink market and include popular brands such
as Coca-Cola, Pepsi, Thumps Up etc. Non-cola segment constitutes
for over 35% of the market and can be divided into four sub
groups based on types of available flavours that include
*Orange: Popular brands include Fanta, Mirinda Orange etc.
*Clear lime: 7Up, Sprite
*Cloudy lime: Limca, Mirinda Lemon
*Mango: Maaza, Slice
Based on the place of consumption, the soft drink market can be
classified into two segments On premise (at the place of
purchase) consumption of soft drinks, for example railway
stations, restaurants and cinemas; and In-House consumption of
soft drinks purchased for consumption at home. In India on
premise consumption accounts for an estimated 80% of the total
soft drink market with in-house consumption accounting for the
remaining 20% of the market.
Until 1990s, domestic players like Parle Group (Thumps Up, Limca,
Goldspot) dominated the softdrink market in India. However, with
the advent of the MNC players like Pepsi (1991) and Coke
(re-entered in 1993 after it was banned in 1977) in the early
1990s, the market control shifted towards them by the late
1990s.
The per capita consumption of soft drinks in India is among the
lowest in the world 5 bottles per annum compared to the 800
bottles per annum in the USA. Delhi reports the highest per
capita consumption in the country 50 bottles per annum. The
consumption of PET bottles is more in the urban areas (75% of
total PET bottle [plastic bottles] consumption) whereas the
sales of 200ml bottles were higher in the rural areas. According
to a survey, 91% of the soft drink consumption in India is in
the lower, lower middle and upper middle class section.
In 2000, the soft drink market accounted for 6480 million
bottles. The market growth had reportedly slowed down during
2000 with a growth rate of 7-8% compared to 22% in 1999. This
decline in growth was attributed to the rise in soft drink
prices during 2000 on account of increased excise duties. Though
Pepsi led the soft drink market during the mid 1990s, Coca-Cola
through its constant acquisition of the major national and
international brands such as Gold Spot, Limca, Thumps Up, Canada
Dry and Crush during the 1990s and 2000, emerged as the new
leader in the soft drink market during 2001 with Pepsi closely
following it.
Apart from these segments, the soft drink market has a sub
segment the soft drink concentrate segment (SDC) or the
preparatory soft drink segment. This segment includes the soft
drinks that are available in concentrated forms that need to be
diluted or mixed at home for consumption. The major players in
the segment are Rasna, Kissan and Roohafza with Rasna ruling the
roost with over 82% of the total SDC market in 2001 and Kissan
and Roohafza following it with 8% and 7% of the market share
respectively. |
More Classifications...
