Beverage and Dairy Companies are Expecting a 25% Increase in Growth this Summer

With the increasing temperatures, leading companies in the beverage and dairy sectors are preparing for a summer of increased sales. Brands such as Parle Agro, ITC Foods, Mother Dairy, Coca-Cola, and Rasna strategically target low-priced packs ranging from Rs. 5 to Rs. 10 to boost sales and meet consumer demand.

NielsenIQ reported a decrease in volume growth in the food sector from October to December 2023, with a dip of 5.3% compared to the 8.7% growth seen in the previous quarter of July to September.

Manish Bandlish, Managing Director of Mother Dairy (Fruit and Vegetable), emphasized the significance of smaller unit packs and predicted a 25-30% rise in demand for dairy products. He points out that these smaller packs improve market reach and appeal to consumers seeking value and quality during the summer months.

Ravin Saluja, the Director of Sterling Agro (Nova Dairy), agrees with this idea, highlighting that affordable packaging encourages casual purchases, ultimately increasing sales and consumption during busy summer.

Industry experts are predicting a significant increase in demand for fresh dairy products like dahi, lassi, and chaach, as consumer preferences shift towards refreshing dairy options.

Big players in the beverage industry such as PepsiCo India and Coca-Cola India are growing in their summer marketing campaigns and production to take advantage of the increased demand during the season.

ITC Foods is also elevating its manufacturing and distribution activities, focusing on rural areas with budget-friendly fruit juices and expanding its availability of fresh dairy products.

Beverage and Dairy

Experts predict that there will be a boost in volume growth beginning this month. This can be attributed to higher levels of consumption caused by an unusually hot summer, the ongoing election season, and the Indian Meteorological Department’s projections of regular monsoons.

Companies are adjusting their strategies in response to the changing market environment, aiming to meet the needs of sparing consumers while maintaining profitability. Parle Agro, for example, focuses on specific price ranges for its popular brands such as Frooti and Smoodh, to encourage consumption in both urban and rural regions.

By implementing strategies and prioritizing affordability and convenience, FMCG giants are ready to satisfy consumer demand and generate significant growth during the upcoming summer season.


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