India's RTD Revolution: The Future of Refreshment

India's beverage sector is experiencing a dramatic shift as Ready-to-Drink (RTD) beverages become essential. Health-conscious, quick-commerce-driven, and diverse in offerings, RTDs are reshaping how brands connect with urban consumers. As health-oriented drinks accelerate growth, brands must innovate to remain competitive in this rapidly evolving market.

The beverage market in India is witnessing a groundbreaking transformation, estimated to reach USD 28 billion in 2024, driven by the surge in Ready-to-Drink (RTD) beverages. Once niche, RTDs are becoming a staple among consumers who prioritize health, convenience, and innovation, redefining brand strategies.

According to a Redseer report, the online RTD sector experienced a remarkable 52% year-on-year growth, crossing USD 121 million within April-June 2024. Quick commerce platforms are pivotal, facilitating over 57% of sales by offering swift delivery solutions. This growth is predominantly led by health-centric, non-carbonated beverages, while traditional colas struggle to maintain traction.

Brands face a crucial time, needing to reposition RTDs as lifestyle enhancers. Emphasizing health, indulgence, and convenience, while leveraging real-time insights from quick commerce, can yield significant advantages. Mrigank Gutgutia of Redseer Strategy Consultants highlights the urgency for brands to innovate quickly or risk obsolescence amid the RTD revolution.

(With inputs from agencies.)