The beverage market in India is mainly bifurcated into alcoholic and non-alcoholic beverage. The further segmentation of non-alcoholic beverage in India comes out to be of carbonated and non-carbonated beverage. The main segments that are observed in the non-carbonated non-alcoholic segments comprises of juices, bottled water, energy drinks, ready to drink tea and coffee, flavoured milk, malted drinks and other drinks that are available.

At present Indian packaged juice market is valued at Rs2,500 crore and is expected to grow at 15-20 % CAGR.

The segmentation in the Indian juice market is done on the basis of fruit content like fruit juices, fruit drinks and nectar drinks. Fruit drinks dominate the market with more than half of the market share. https://marketersmedia.com/india-juice-market-industry-analysis-size-share-growth-trends-and-forecast-2017-2021/226928

Fruit drinks, which have a maximum of 30% fruit content, are the highest-selling category, with a 60% share of the market. Frooti, Jumpin, Maaza, etc. are the most popular products in this category. Fruit Juices, on the other hand, are 100% composed of fruit content, and claim a 30% market share at present. In contrast, nectar drinks have between 25-90% fruit content, but account for only about 10% of the market.

Dabur is the market leader in the Indian packaged juices market with its brands Real and Real Activ. It accounts for ~55% of the total packaged juices market, and is followed by PepsiCo with a ~30% share. Other players include Parle, Fresh Gold, and Godrej. Some of the other brands of fruit juices and drinks include Frooti, Appy, Mazza, Minute Maid, Slice, Fresh Gold, and Del Monte.

Growth drivers There are several reasons behind the growth the Indian Packaged juices category has realized; some of these are mentioned below.

· Changing consumer lifestyles: Given the change in eating habits, the wider global exposure, and the growing time-poverty, has provided a fillip to the convenience food segment. Again, consumer preferences are shifting towards healthier lifestyles. As a result, the packaged juices market has charted a high growth trajectory thanks to its easy availability, anytime-anywhere consumption, and convenience. Juices are often seen to be quick, yet nutritional, fillers.

· Increased Health Awareness: The rising awareness about heart- and weight-related health issues, especially among teenagers and young adults, has propelled the consumption of packaged fruit drinks. There is also a greater preference for these “healthier” beverages than carbonated soft drinks.

· Hygiene matters: Juices are healthy only when prepared hygienically. Packaged juices from trusted national and international brands have usually been prepared and certified to be in accordance with health and safety regulations. They thus underpin the confidence of consumers in considering them to be a healthy and convenient option, as compared to the fresh juices available at local joints and street stalls.

· Growing category of informed buyers: There is a growing category of informed buyers who are able to distinguish between fruit-based beverages and fruit juices. These consumers are health conscious,

highly aware, and have higher disposable income. They have, therefore, led the demand for 100% fruit juices in the past couple of years.

· Rising Disposable Incomes: In the past few years, there has been a sharp change in the number of nuclear families, in tandem with a surge in the number of working couples, which has led to higher disposable incomes. This has aided the affordability of packaged fruit juices, which are fast replacing fresh, homemade juices and becoming a compulsory item on breakfast tables.

· Booming modern retail: The dynamics of growth in the fruit-based beverage space are attributed to modern retail and alluring shelf displays which drive impulse purchases.

· Habitual purchase: The trend of consumers evolving from fruit drinks in bottles to sweetened juices to 100% packaged juices has been observed largely in the past couple of years. Consumers are buying in greater quantities, for household consumption, and buying fruit juices is becoming more of a habitual purchase than a need-based purchase.

· Introduction to new flavors: To kindle consumers’ interest in the category and also to cater to diverse and changing tastes, fruit juices providers are introducing new flavors and packaging options.

Opportunities At the same time, the packaged juices market throws up many opportunities. Some of them are outlined below:

· Shift towards 100% juices from sweetened juices: This offers a wide opportunity to existing and upcoming juices manufacturing companies to spruce up their existing business and plan as needed for business or capacity expansion.

· Healthy proposition: it has been observed that consumers are making healthy choices in their beverage consumption; therefore, fiber-enriched juices and no sugar juices are more in demand. Some new juice variants claim to have no added sugar; this can be positioned as a health attribute, e.g. “Dry Fruit Apple Juice” by Balan Natural Foods

· Unique offering: Consumers are seeking unique fruit flavors apart from the usual mango, orange, or lime-based fruit juices. Companies intoned to identify some of the unique fruit juices that can be offered - “Dry Fruit Apple Juice” for instance, which is much sought after due to the nutritive benefits provided by the combination of dates, figs, raisins, almonds, and apple concentrate.

· Wider Options: Companies need to offer wider varieties and options for the consumer to choose from, ranging from “mixed” fruit juices to pure, single fruit juices to dry fruit juices. Thanks to higher incomes, consumers are willing to experiment with variety and pay a premium for such value-added products.

· Product extension: There has been some recent product extension, e.g. Tropicana launched Tropicana Fruit Powder with no preservatives or artificial flavors, which will be available in single-serve sachets and can be made into a full glass of juice simply by adding water. http://www.technopak.com/Files/packaged-juice-market-in-india.pdf

Overview, the juice market in India registered a CAGR of 15-20% in the last six years. India is known to be a fruit basket of the world and has been considered as the second largest producer of fruits after China. https://www.businesswire.com/news/home/20170518005761/en/India-Juice-Market-Overview---Research-Markets