India's biggest consumer goods companies are increasingly finding their growth in what consumers drink rather than what they eat, as coffee, ready-to-drink (RTD) beverages, protein-based products and low-sugar juices emerge as some of the fastest-growing categories in the country's FMCG market.
Recent quarterly earnings from Nestle India, Hindustan Unilever (HUL), Tata Consumer Products, Dabur India and Varun Beverages point to a common trend: beverages are consistently outpacing broader portfolio growth, prompting companies to expand product offerings, launch new formats and invest heavily in premium and functional drinks aimed at younger consumers.
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The shift comes as younger consumers increasingly gravitate towards products that combine convenience, health and premium positioning, pushing companies beyond traditional soft drinks and juices.
For FMCG companies grappling with uneven rural demand and slowing growth in some staple categories, beverages offer multiple avenues for expansion — from premiumisation and innovation to out-of-home consumption and convenience-led purchases.
Coffee cups & no-sugar cans
Nestle India said its powdered and liquid beverages business delivered another year of high double-digit growth, helped by rising coffee penetration, premiumisation and deeper category relevance across consumer segments. Nescafe continued to gain market share, while premium coffee brand Nespresso expanded its presence with a second boutique in Gurugram.
At HUL, coffee maintained strong double-digit growth momentum during the March quarter, while lifestyle nutrition brands Horlicks and Boost also posted double-digit growth. The company recently extended the Horlicks brand into the protein segment with the launch of Horlicks Protein Ready-to-Drink beverages, underscoring how traditional nutrition brands are adapting to changing consumer preferences.
Meanwhile, its packaged foods business, which includes ketchup and mayonnaise reported mid-single digit growth during the period.
