From boozy highs and soda burps, party animals are switching their loyalties to fruity concoctions. According to a Statista study, the global non-alcoholic drinks market is anticipated to experience a volume growth of 2.3% this year.By 2027, it is projected to reach 944.6 billion litres — clocking a CAGR of 4.6% between 2023-27. Currently, India’s ready-to-drink juice, mocktail and non-alcoholic beverage market comprises over 200 players.
Makers are raking in the most from millennials as well as health-conscious Gen Zs, that lap up everything that is natural and organic. “The post-Covid era has ignited a profound shift towards healthier living, and that has stimulated a demand for non-alcoholic alternatives. Lifestyle changes have increased consumer awareness of alcohol’s harmful effects, but they still desire some non-alcoholic drink options that taste similar. This pattern is especially prevalent among consumers between 25 to 34 years of age,” said Neha Singh, co-founder of startup information and market trends provider Tracxn.
Singh added that in recent years, new brands have emerged to meet the increasing demand, and India holds a strong position among other leading countries in terms of the funding raised in this area. There is high interest in the market — startups are getting fresh funding from angel investors, while FMCG majors are looking to buy stakes in the companies. Bengaluru-based Swizzle received a seed funding of nearly $67,000 from angel investors Akshay Singhal and Monika Rao this Feb.
Coolberg got $1.1 million in its latest round from institutional and angel investors including Ashok Kumar Damani. Institutional investors including Emami, Venture Catalysts as well as nine unicorns invested an undisclosed amount in AloFrut last Sept. Data provided to TOI by Tracxn shows that top players in this sector received over $33 million in funding from institutional and angel investors between 2019-24.
Harsha V Agarwal, vice chairman and managing director of Emami, echoes similar sentiments. “With health & wellness being the buzzword for consumers today, we see tremendous potential in the segment,” she said.
Deepender Singh, co-founder of ready-to-drink mocktail brand Swizzle, said, “Consumers are not only seeking products that are better for their health but also ones that are produced ethically, with minimal impact on the environment.” Swizzle, which achieved a 210% growth in FY23, aims to reach a projected revenue of Rs 12 crore by the end of FY25.
