Fruit Drinks Shine In Beverages Market

Still drinks, nectars and packaged water sales are maturing quickly to grab a major share of the Indian beverages market, according to "The 2007 India Soft Drinks Report" by Canadean, the global beverages research company.

Still drinks include ready-to-drink fruit or non-fruit based drinks with a juice content lower than 25 per cent, like mango Frooti and Appy. The category also includes sweetened flavoured waters.

The success of such brands in India (for that matter even outside India) has largely been the result of a slowing demand for carbonated drinks, which declined in 2006 for a second consecutive year.

If the huge loose sales segment (sales from juice vendors and hotels) is taken into account, still drinks replace carbonated beverages as the leading category in 2006.

The shift has been partially because of fears of pesticide contamination in carbonated drinks, the report says. "This pressure on carbonates has given still drinks an opportunity, and with competitive pricing, still drinks have taken full advantage (of the situation)," the report says.

"Demand has been further buoyed by the introduction of new larger 1.2 litre PET family pack formats that provide another option to carbonates.