Jeera spices up India’s battle of beverages-OxBig News Network

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These companies are scaling up the production of cumin-infused drinks as the market for alternatives to colas swells. Coca-Cola, DS Group, Bisleri, and Reliance Consumer Products, alongside numerous regional brands, offer such spicy drinks. PepsiCo is reportedly eyeing an entry in the category dominated by bottles priced ₹10-20 apiece.

“The unorganized segment for jeera-based beverages is estimated at ₹1,500–2,000 crore, and the per capita aerated beverage consumption in India remains 3–4 times lower than in several other Asian markets,” said Nadia Chauhan, joint managing director and chief marketing officer, Parle Agro. 

“That clearly signals untapped potential for growth. With strong consumer familiarity, functional relevance, and a flavour profile that aligns with Indian food habits, this category is poised for accelerated expansion,” she said. “We believe it can double in size over the next three years.”

India’s bottled beverage market is still dominated by fizzy colas. Think tank ICRIER estimates it to more than double from ₹67,100 crore in 2019 to ₹1.47 trillion by 2030. Still, the country is a vast market for traditional beverages like nimboo pani masala and aam panna, often made and consumed at home. Beverage makers have spotted an opportunity as jeera-based drinks become a popular alternative, particularly as a meal accompaniment due to their perceived functional benefits. 

Also read | <a class="backlink" target="_blank" href="https://www.livemint.com/industry/beverage-segment-amul-kool-parle-agro-reliance-dabur-coca-cola-campa-spinner-pepsi-summer-beverages-gujarat-cooperative-11739687483821.html" data-vars-page-type="story" data-vars-link-type="Manual" data-vars-anchor-text="Campa, Smoodh and now, Amul Tru: India's ₹10 beverage market is starting to get crowded”>Campa, Smoodh and now, Amul Tru: India’s ₹10 beverage market is starting to get crowded

Parle Agro, which launched Dhishoom for rural and small-town markets in 2012, rolled out the drink nationally last year.

Compared to the scale of flagship brands such as Frooti, Appy Fizz or Smoodh, Dhishoom is still early in its journey but will carve out a differentiated space over the next 12-24 months, Chauhan said. The company expects this business to double over the next three years.

Lahori Zeera, owned by Chandigarh-based Archian Foods Pvt. Ltd, plans to add six co-bottling units this fiscal. Earlier this year, Archian Foods secured ₹200 crore from Motilal Oswal Wealth. The company, founded by three cousins in 2017, plans to use these funds to expand manufacturing, transition to third-party bottling, and scale up distribution.

Ethnic flavours

There is a strong desire among Indian consumers for novel and ethnic flavours in non-alcoholic beverages. According to a 2023 research by market intelligence firm Mintel, 45% of Indians are interested in trying ethnic Indian flavours in packaged non-alcoholic drinks, and 41% are interested in global flavours. New flavours motivate 38% of carbonated soft drink consumers to try different beverages. 

Cumin is an emerging and popular flavour in both non-alcoholic beverages and yogurt drinks. Mintel sees a potential for further innovation.

Smaller, homegrown brands such as Jeeru and Bindu have already established a niche in the category. Lahori Zeera aimed to target this market.

“The idea was to appeal to a more local taste palette and create mass-connect,” said Nikhil Doda, co-founder & chief financial officer at Archian Foods. 

Read this | Hot summer forecast to boost consumer durables, beverage sales in India

Over 90% of Lahori Zeera’s business comes from the ₹10 price point. The brand is currently available in 17-18 states and plans to partner with at least six co-packing units or third-party bottlers this fiscal year. Demand, said Doda, has outstripped supply.

“This year, we will switch to an asset-light model; we are going into a co-bottling model similar to what other big brands do. That will help us bridge the gap between demand and supply and fast-track growth,” he said. “People from the industry, existing bottlers who vouch for the brand, are ready to invest.”

Noida-based DS Group, which sells candies and spices, launched its Catch Jira drink in mid-2016. 

“Jeera is known to enhance flavour and aroma in food preparation, but it is also perceived to be a digestive, which is driving the consumer interest in the beverage segment,” said PS Bedi, business head, drinks, DS Group.

In 2018, Coca-Cola relaunched Rimzim jeera beverage, a brand it acquired from Parle in the 1990s. However, the category hasn’t scaled beyond select markets for the beverage major.

Read this | Bisleri to double sales in two years; not selling business: Jayanti Chauhan

“It is available in the rural markets of Gujarat, Karnataka, and a few rural parts of Northern India. Based on consumer insights, jeera flavoured drinks are being consumed and are gaining popularity among older consumers,” a company spokesperson said. “Rooted in indigenous taste preferences, it offers a refreshing addition to Coca-Cola’s beverage portfolio in India.”

PepsiCo declined to comment on its future product pipeline. But those in the beverage industry said the company is planning a beverage under its Nimbooz refreshment brand. 

Bisleri also declined to comment.

Pricing challenge

While the market is growing, the ₹10 price point remains a challenge due to high taxation on sugary, aerated drinks. 

It is absolutely not sustainable as the category attracts goods and services tax of 28% and a 12% cess—a total of 40%, said Bedi from DS Group. 

Local retailers Mint spoke to said they typically sell the product in bulk or packs of 24 priced at ₹240.

Parle Agro and Lahori Zeera remain committed to this price point. 

“Frooti is nearly 40 years old and continues to be available at ₹10. We’ve also successfully built Smoodh at that same entry point in the dairy category,” said Chauhan.

Doda of Lahori Zeera said the ₹10 price point drives significant volumes. 

“Having said that, competition has become intense,” he said. “The category has attracted more big boys.”

And read | Competition a positive force, keeps us sharp: Coca-Cola president Murphy

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