India Functional Beverages Market

India Functional Beverages Market Overview:

The India functional beverages market size reached USD 6.20 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 16.25 Billion by 2033, exhibiting a growth rate (CAGR) of 11.30% during 2025-2033. The market is witnessing strong growth with rising demand for health-related products from consumers. With natural ingredients, gut health, and energy-boosting properties, the market is varied with choices in herbal infusions, probiotic beverages, and cognitive-stimulating drinks.

India Functional Beverages Market Trends:

Ayurvedic and Herbal Infusions

Indian functional beverage industry is adopting Ayurvedic and herbal infusions as consumers continue to look for natural wellness solutions. Conventional ingredients, such as turmeric, tulsi, ashwagandha, and giloy are gaining acceptance due to their adaptogenic, anti-inflammatory, and immunity-strengthening abilities. This trend is supported by a rising interest in holistic health, where drinks provide functional benefits beyond hydration. For example, in September 2024, Stonefield introduced 15 new-age international flavors, launched its Indian Ethnic Portfolio, and released the Ethnic Drinks of Asia Report, showcasing traditional drinks such as Jigarthanda and Teh Tarik for the F&B sector. Additionally, herbal teas, wellness shots, and infused waters are at the forefront, fusing old wisdom with new convenience. Brands, focusing on clean labels and open communication, are developing products that support a preventive care strategy. The beverages have a wide appeal to health-aware millennials, as well as the older demographic seeking natural solutions. With increasing consumers embracing proactive health habits, Ayurvedic and herbal drinks are turning out to be the go-to for people looking for nourishment, balance, and general well-being in a refreshing and convenient form.

Gut Health and Probiotic Beverages

The market for gut health and probiotic drinks is boosting in India as more consumers become aware of the need for a healthy gut to ensure overall well-being. Drinks such as kombucha, kefir, and fermented juices are becoming popular due to their capability to aid digestion, boost immunity, and ensure a healthy gut microbiome. Prebiotic drinks fortified with fiber are also increasingly popular as they feed the good gut bacteria. The trend is an overall concept for health, wherein functional drinks provide physical and mental well-being benefits. Convenient ready-to-drink (RTD) packaging and natural, fermented ingredients make these products attractive to health-aware consumers, particularly urban workers and millennials. For instance, in October 2023, Beyond Water introduced its first ready-to-drink (RTD) iced tea in India targeting health-conscious consumers. The low-sugar drink comes in peach and lemon flavors, available through top delivery apps. Moreover, with continued research emphasizing the connection between the health of the gut and the mind, demand for probiotic and prebiotic beverages will increase, providing consumers with an efficient and pleasurable means to maintain digestive wellness.

Energy and Cognitive Boosters

Energy and mental-stimulating functional drinks are gaining popularity in India as consumers look for a healthier version of energy drinks. Products typically have natural ingredients such as matcha, ginseng, green coffee, and B vitamins, giving consumers sustained energy and clarity of mind without the energy crash typical of sugary drinks. Formulations frequently contain adaptogens and nootropics that improve concentration, alleviate stress, and boost physical performance. It is fueled by active urban professionals, athletes, and students who require potent, clean energy to enhance their active lifestyle. Options abound in the market, ranging from sports beverages and refreshing shots to herbal drinks, combining energizing features with hydration and healthfulness benefits. As Indian consumers continue to value equated energy and cognitive well-being, functional drinks that deliver these gains are poised to remain a dominant trend in the Indian market.

India Functional Beverages Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region level for 2025-2033. Our report has categorized the market based on type, distribution channel, and end user.

Type Insights:

• Energy Drinks
• Sports Drinks
• Dairy-based Beverages
• Juices
• Others

The report has provided a detailed breakup and analysis of the market based on the type. This includes energy drinks, sports drinks, dairy-based beverages, juices, and others.

Distribution Channel Insights:

• Supermarket and Hypermarket
• Specialty Stores
• E-commerce
• Others

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes supermarket and hypermarket, specialty stores, e-commerce, and others.

End User Insights:

• Athletes
• Fitness Lifestyle Users
• Others

The report has provided a detailed breakup and analysis of the market based on the end user. This includes athletes, fitness lifestyle users, and others.

Regional Insights:

• North India
• South India
• East India
• West India

The report has also provided a comprehensive analysis of all the major regional markets, which include North, South, East, and West India.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

India Functional Beverages Market News:

• In March 2025, Reliance Industries introduced 'Raskik' broadening its beverage portfolio after the successful re-launch of Campa Cola. The new product is designed to further Reliance's presence in the rapidly expanding Indian beverage market, given its large retail network. The introduction is in line with the company's decision to diversify its FMCG offerings as well as boost consumer reach.
• In June 2023, Tata Consumer's NourishCo diversified its functional beverages business with the launch of Tata Coffee Cold Brew. The ready-to-drink product, with low sugar levels. The initiative follows NourishCo's vision to capitalize on the increasing popularity of healthier, convenient beverage consumption in India.

India Functional Beverages Market Report Coverage:

Key Questions Answered in This Report:

• How has the India functional beverages market performed so far and how will it perform in the coming years?
• What is the breakup of the India functional beverages market on the basis of type?
• What is the breakup of the India functional beverages market on the basis of distribution channel?
• What is the breakup of the India functional beverages market on the basis of end user?
• What is the breakup of the India functional beverages market on the basis of region?
• What are the various stages in the value chain of the India functional beverages market? 
• What are the key driving factors and challenges in the India functional beverages?
• What is the structure of the India functional beverages market and who are the key players?
• What is the degree of competition in the India functional beverages market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India functional beverages market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the India functional beverages market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India functional beverages industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.