Gen Z is changing what India drinks, according to Varun Beverages, as younger consumers seek new flavours, formats and categories beyond traditional soft drinks. The shift is pushing faster product launches and changing how beverage companies build their portfolios.
“The new Gen-Z keeps on asking for something new all the time,” Chairman Ravi Jaipuria said in the company’s earnings call. He said the company is positioned to respond because the same production lines can support new flavours and packaging changes.
The comment offers a view into how consumer demand is evolving in India’s drinks market. Growth is no longer only about selling more cola. It is also being driven by energy drinks, dairy, hydration products and new pack formats aimed at changing tastes.
New Tastes
Varun Beverages said energy is becoming a bigger part of its portfolio, while dairy and hydration are also gaining share. Management said the mix will keep changing each year as consumer preferences shift.
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The company said Ad Rush, its mid-priced energy drink, has done “phenomenally well”. It also said the newly launched Sting Classic received a “fabulous” early response.
Dairy is growing 60% to 70%, while Nimbooz is growing 50% to 60%, Jaipuria said. Tropicana PET is growing more than 100%, he added.
Market Shift
The update matters because younger consumers can reshape demand faster than older categories. Companies may need quicker launches, wider portfolios and flexible production to keep pace with changing preferences.
Varun Beverages said its plants can adapt without major changes because production uses the same machines, with shifts mainly in flavours or packaging.
The company said it remains positive on long-term demand and expects double-digit growth in the Indian market over the next five to 10 years, subject to seasonal factors such as weather. Expanding distribution and new products are likely to remain central to that plan.
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