NEW DELHI:Intense heatwaves in parts of India this summer have spiked demand for several products typically consumed outside and as snacks. This has impacted beverages consumed at home, leading to a shift from juices to carbonated drinks.
Traditionally a cold drink category led by fizzy drinks like Coca-Cola and Pepsi, consumption of these beverages surged during the heatwaves. Dabur, Tata Consumer Products Ltd, and other beverage companies reported that sales of juices were impacted by the unusually high demand for fizzy drinks.
A note from Dabur on Thursday highlighted that their Real brand, which includes juices, fruit drinks, and milkshakes, saw a decline in demand as consumers switched to carbonated beverages for a quick and refreshing option. This shift in consumer preference, driven by the heat, has had a noticeable effect on the beverage market.
In-home consumption stayed strong, but out-of-home consumption dropped by 50% to 30,000 packs. Analysts at Yes Securities noted that aggressive pricing by big players like Coca-Cola and Pepsi narrowed the price gap between juices and colas, making fizzy drinks more attractive during the heatwave.
Dabur’s quarterly earnings revealed that their drinks portfolio faced pressure due to the rising popularity of fizzy drinks and coconut water. The company’s aggressive consumer campaigns and pricing strategies led to higher sales of carbonated beverages, overshadowing their traditional juice market.
As the heatwaves continued, the demand for easy-to-consume and thirst-quenching beverages remained high, shifting consumer habits significantly in favor of fizzy drinks.
