Lassi, buttermilk reshaping ₹1.1 lakh cr soft drinks market:Dairy beverages see 40% growth this season; why are sales rising?

This year’s record-breaking summer has changed the dynamics of India’s ₹1.1 lakh crore soft drinks market. Refrigerators at grocery stores and quick-commerce platforms are increasingly making room for buttermilk, lassi and probiotic drinks alongside soft drinks. The shift is especially visible among young consumers and urban households, who are increasingly choosing health-focused and protein-based dairy beverages over carbonated drinks. Dairy beverages see strong growth According to Jayen Mehta Chari, Managing Director of Mother Dairy, dairy products such as lassi and buttermilk have recorded more than 40% growth this season. The company is also seeing double-digit growth on quick-commerce platforms. Srideep Kesavan, CEO of Heritage Foods, says dairy beverages’ contribution to the company’s revenue has doubled over the past three years. Dairy drinks market set for rapid expansion Akshali Shah, Executive Director of Parag Milk Foods, said India’s packaged food and beverage industry is currently worth ₹9.51 lakh crore and is expected to reach ₹14.27 lakh crore by 2030. The dairy drinks market is projected to grow to ₹4.23 lakh crore by 2031. As a result, the company is focusing on products centred on protein, health and wellness. Parag’s business in this segment has grown by 109% year-on-year. Responding to this consumer shift, the company has launched Avatar Protein Cold Coffee. The 15g protein pack has been designed to combine convenience with nutrition. Mother Dairy is also introducing new variants such as probiotic buttermilk and mint buttermilk at an entry price of around ₹10. New ‘growth engine’ for FMCG companies Beverages have now become the biggest growth driver for major FMCG companies such as Nestlé, HUL, Tata Consumer and Dabur, overtaking categories such as ketchup and mayonnaise. Reasons behind rising sales of lassi and buttermilk