India Energy Drinks Market: Facts, Trends and Opportunities

Indian energy drinks market has grown at a phenomenal rate in last few years. The market in 2010 was estimated to be worth INR 120-130 crores (USD 26 mn – USD 29 mn) and has grown at excess of 40% year on year during last 4-5 years.

Trends in Indian energy drinks market:

  1. Heating up of competition: A few years ago red Bull was the only know energy drink in India but in last few years have seen multiple brand launches in the category. Cloud 9 was the first Indian energy drink, XXX was launched in 2009, Coca-cola launched Burn in 2010. In 2011, Calidris India Private Ltd (CIPL), a fully owned subsidiary Calidris, launched natural energy drink 28Black. PepsiCo also launched its energy drink brand SoBe, but it has not taken off.
  2. The target buyers for energy drinks continue to be the young and working Indian population. They are often associated with partying and essential for leading an active lifestyle in middle of tiring and stressful work life.
  3. Energy drinks are urban phenomena and supermarkets are the primary channels of their sales. Apart from retail sales, energy drinks are sold in bars and pubs along with alcohol.

Key players in Indian energy drinks market:
There a few players in the market but the number is on a rise:

  1. Red Bull – Company is market leader and is closely associated with energy drinks.
  2. Coca-cola – Burn
  3. Goldwin Healthcare Pvt – Cloud9
  4. JMJ Group – XXX

Opportunities in Indian energy drinks market:
Though dominated by Red Bull, there exists opportunities in Indian energy drinks market by using innovative business models:

  • Point of sale: Traditionally energy drinks are sold through supermarkets, but another channel can be collaborating with cafes, restaurants, fitness centers, etc. for both promotion and sales
  • Price points: All energy drinks in India are very expensive as compared to carbonated drinks and juices, thus limiting their market. Cost reduction can open up the market; one such innovation is tried by Hector Beverages (their product Frissia) where they plan to provide energy drinks at affordable prices (as less as one-fourth prices of large players).