Cold Drinks

Topics: Coca-Cola, Soft drink, Pepsi Pages: 14 (3184 words) Published: January 22, 2013

Soft drinks are non-alcoholic water-based flavoured drinks that are optionally sweetened, acidulated and carbonated. Some carbonated soft drinks also contain caffeine; mainly the brown-coloured cola drinks.


To find out consumers buying behaviour and to identify gaps in the industry if any.


To find out the factors affecting soft drinks buying pattern. To find out the consumers buying habits.
Seasonal changes in the buying habits.
To find out the consumer's future requirements and conceptualize an innovative product. To study the overall Beverages industry.


Global Scenario

The global soft drink industry is highly concentrated, being largely controlled by the two multinational companies; Coca Cola and PepsiCo. Coca Cola leads the carbonated soft drink market in most countries in the world with 60% of the global cola market with its flagship Coca-Cola brand. Other notable players include Cadbury Schweppes.

Indian Scenario

In the booming soft drinks industry, multinationals seem to be the biggest winners in terms of market share. The Coca-Cola Company led the highly consolidated market with a 42.8% volume share, followed by PepsiCo at 28.6% in 2004. Danone is a minor player in India with a 0.5% share, chiefly due to its late market entry and limited offerings.

According to government estimates soft drinks marketed in India were 6540 million bottles in March 2001. The market growth rate, which was around 2-3% in ‘80s, increased to 5-6% in the early ‘90s and is presently 7-8% per annum. Most of the sales of soft drinks take place during summers while just 5-6% of total sales take place in winters. In summers the high season lasts for 70-75 days, which contributes more than 50% of the total yearly sales. In terms of regional distribution cola drinks have main markets in metro cities and northern states of UP, Punjab, Haryana etc. Orange flavoured drinks and sodas are popular in southern states. Western markets have preference towards mango-flavoured drinks. Non-alcoholic beverage market can be divided into fruit drinks and soft drinks. Soft drinks available in glass bottles, aluminium cans, PET bottles or disposable containers can be divided into carbonated and non-carbonated drinks. Cola, lemon and oranges are carbonated drinks and non-carbonated drinks include mango drinks. Soft drinks can also be divided into cola products and non-cola products. Cola products in Indian include brands like Pepsi Cola, Diet Pepsi, Coca- Cola, Diet Coke, Thumps Up etc. Cola drinks account for nearly 61-62% of the total soft drinks market in India. Non-Cola products account for 36% the total soft drink market.

Until 1990s, domestic players like Parle Group (Thumps Up, Limca, Goldspot) dominated the softdrink market in India. However, with the advent of the MNC players like Pepsi (1991) and Coke (re-entered in 1993 after it was banned in 1977) in the early 1990s, the market control shifted towards them by the late 1990s.

The per capita consumption of soft drinks in India is among the lowest in the world – 5 bottles per annum compared to the 800 bottles per annum in the USA. Delhi reports the highest per capita consumption in the country – 50 bottles per annum. The consumption of PET bottles is more in the urban areas (75% of total PET bottle [plastic bottles] consumption) whereas the sales of 200ml bottles were higher in the rural areas. According to a survey, 91% of the soft drink consumption in India is in the lower, lower middle and upper middle class section.

After a somewhat subdued performance in 2006 due to a recurrence of the pesticides controversy, soft drinks sales bounced back strongly to record double-digit volume growth in 2007. With carbonates growth back on a positive upward curve alongside burgeoning sales of fruit/vegetable juice and bottles...
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