1.1 lakh crore market is changing:Lassi, buttermilk overtake cold drinks; sales quadruple

This year’s record-breaking heat has changed the mathematics of the country’s ₹1.1 lakh crore soft drinks market. Alongside cold drinks in grocery store fridges and quick-commerce platforms, buttermilk, lassi, and probiotic drinks are making their place. This change is particularly visible among young consumers and urban households, who are preferring health and protein-based dairy beverages instead of carbonated drinks. According to Jayteerth Chari, Managing Director of Mother Dairy, dairy products like lassi and buttermilk have recorded growth of over 40% this season. Quick-commerce platforms alone are seeing double-digit growth. Shridip Kesavan, CEO of Heritage Foods, says that the contribution of dairy beverages to the company’s revenue has doubled in three years. Meanwhile, Akshali Shah, Executive Director of Parag Milk Foods, stated that India’s packaged food and beverage industry is worth ₹9.51 lakh crore, which will reach ₹14.27 lakh crore by 2030. The dairy drinks market is estimated to reach ₹4.23 lakh crore by 2031. That’s why the company is focusing on products like protein, health, wellness. Parag’s business has grown 109% on an annual basis. Keeping this consumer shift in mind, we launched Avatar Protein Cold Coffee. The 15-gram protein pack is designed to bring together convenience and nutrition. Mother Dairy is bringing new variants like probiotic buttermilk, mint buttermilk at an entry price of ₹10. New ‘Growth Engine’ for FMCG Companies For large FMCG companies like Nestle, HUL, Tata Consumer and Dabur, beverages have now become the biggest growth drivers compared to ketchup and mayonnaise. Hindustan Unilever: Strong double-digit growth was recorded in the coffee and Horlicks-Boost segment. Tata Consumer: Ready-to-drink portfolio saw a 23% surge. Dabur: Coconut water business doubled and Real juice saw 26% growth. PepsiCo (Varun Beverages): Approximately 63% of total volume sales in the March quarter came from ‘low-sugar’ and ‘no-sugar’ products. Reasons for Increased Sales of Lassi-Buttermilk Tax Difference Carbonated drinks have 40% GST, while dairy beverages have 5% GST. Due to this 35% difference, dairy companies are able to sell products even at ?10. Health and Nutrition After COVID, consumers want health along with taste. Lassi-buttermilk are ‘healthy alternatives’ as they are probiotic and low-sugar. Modern-Traditional Drinks like kokum, jaljeera, aam panna and buttermilk have re-entered the market with hygienic packaging. Market Trend: Carbonated Drinks versus Desi Beverages Category- Market- Projected- Annual Growth Soft Drinks – 111.81 – 168.13 – 4.64%
Lassi – 5.60 – 24.57 – 16.96%
Buttermilk – 19.33 – 101.18 – 18.16% (Source: IMARC. Market Size in Thousand Crores Rupees)