What Makes Coke Enter Packaged Coconut Water Market in India?

While domestic FMCG players like Dabur and Jain Agro have already made a foray into packaged coconut water market in India, global bellwether Coca Cola is now all set to launch it in India. Coke is test marketing the product in the country in the recent past.

In 2013, Coke had acquired the US coconut water brand Zico, announcing its expansion into this market. Packaged coconut water is one of the fastest growing beverage categories in the world. With the acquisition of Zico, Coke had secured a top position in this segment.

As per TechSci Research report, “India Packaged Coconut Water Market By Type (Natural Vs. Blended), By Sales Type (Retail Vs. Direct), By Packaging Type (Plastic Bottle & Others), By Distribution Channel (Grocery Store & Others), Competition Forecast & Opportunities, 2012 – 2022”, the India packaged coconut water market stood at $ 15.38 million in 2016.

The market research report states that this industry is projected to grow at a CAGR of over 17%, in value terms, during 2017-2022 to reach $ 40.73 million by 2022.

With the ever increasing number of diabetic patients in India, the sugary drinks market has taken a beating. On the other hand, the rise of lifestyle related diseases has paved way for health, energy and fitness drinks in the second largest market in the world i.e. India.

Not just diabetes, but people suffering from other lifestyle diseases and problems including hypertension, hyper and hypothyroidism, obesity, etc. are avoiding sugary cola drinks these days. Coconut water, on the other hand, has emerged out as one of the most preferred options across the country. Currently, people buy it from the roadside vendors or take it from the super store chains.

However, it is not widely available in the unorganized retail market which is the biggest chunk of the retail industry. Imagine if a packaged coconut water bottle is available just like other cola drinks like Coke, Pepsi and Sprite. What will a consumer prefer if these drinks are kept at the same place?

The growing sense of fitness and health activism has put a serious dent in the sugary drinks market and that’s the major driver fuelling growth in the packaged coconut water market in India.

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If media reports are to be believed, Coke and Pepsi are facing stiff resistance from some traders associations in Kerala and Tamil Nadu. These traders accuse these companies of drawing too much of groundwater and hurting the water situation in these states.

Meanwhile, Indian FMCG companies such as Pure Tropic, Lifetree Agro Foods, Nilgai Foods, Habhit Wellness,  Madhura Agro Process, Sakthi Coco Products, Sharanam Foods and Nature`s First India have also entered the packaged coconut drink water.

India’s FMCG giant Dabur has launched Real Active brand in the segment. The company claims that it is made up of 100 per cent tender coconut water, thus extending natural health benefits that it offers.

According to health and fitness experts, coconut water helps in enhancing immunity, improves blood circulation, provides relief in constipation, heart burn and digestion related issues. It is good for everyone and people from all age groups can consume it. Pregnant women are especially recommended to consumer coconut water.