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New Delhi: The soft drinks market in India is now a new competitive landscape, but it’s not just about the price or advertising. Consumer tastes are slowly turning to drinks that are both tasty and perceived as healthy, prompting companies to rethink how they compete in one of the nation’s biggest packaged beverage markets.
In this context, ITC Ltd. has launched B Natural Coconut Cola, a new carbonated beverage that combines coconut water with cola flavour. The company is not trying to compete with traditional colas, but instead, it is seeking to establish itself in the emerging premium beverage market. The launch is part of a wider pattern in the fast-moving consumer goods (FMCG) industry, where businesses are increasingly trying out new product variations, rather than sticking to the traditional product categories.
The carbonated soft drink market in India is highly concentrated. Coca-Cola and PepsiCo continue to dominate the organised market, backed by decades of brand recognition, bottling infrastructure and nationwide distribution. Reliance Consumer Products has revived Campa Cola over the past two years and is working to establish a foothold, but challenging the global beverage giants remains a difficult task.
Rather than competing on price, ITC seems to be taking a different approach. B Natural Coconut Cola is priced at ₹60 for a 250 ml can and contains no added sugar, with coconut water as one of its primary ingredients. The strategy reflects the company’s focus on consumers seeking beverages with lower sugar content and more natural ingredients.
The shift is in line with the evolving consumption trends in India’s beverage sector. Industry data indicates that the demand for healthier drink options, such as fruit-based drinks, flavoured water, functional drinks and low-sugar beverages, is increasing, especially among urban consumers. With nutrition awareness on the rise, FMCG companies are continuing to diversify their offerings while retaining familiar flavours.
The launch is part of ITC’s broader strategy to strengthen its food and beverage business. The company has steadily expanded its B Natural portfolio beyond fruit juices to include coconut water, smoothies and value-added beverages. Coconut Cola extends that strategy into the carbonated drinks category while leveraging an existing brand.
Meanwhile, industry analysts say creating a new beverage category is often more challenging than entering an existing one. Consumer adoption depends not only on product quality but also on pricing, repeat purchases, retail availability and sustained marketing support. Products positioned between soft drinks and health beverages may take longer to gain widespread acceptance.
The competitive environment has also shifted since Reliance Consumer Products revived Campa Cola in 2023. The company has focused on aggressive pricing and rapid expansion through modern retail and quick-commerce channels. According to the company, Campa generated ₹4,700 crore in revenue during FY26, making it one of India’s fastest-growing carbonated beverage brands. Its growth has shown that domestic players can attract consumer attention even in a market dominated by multinational companies.
The difference with ITC’s new product is that it is not trying to replicate the traditional cola formula. Instead, the company is testing whether consumers will embrace a beverage that combines a familiar cola taste with coconut water and a lower-calorie profile. Its success will depend on whether buyers perceive it as a healthier alternative rather than simply another cola on the shelf.
The overall message is that India’s beverage market is becoming increasingly diversified. Price cuts and celebrity endorsements are no longer the only ways to compete. Companies are increasingly investing in product innovation, premiumisation and category creation as consumer expectations continue to evolve.
It’s too early to tell if Coconut Cola will become a mainstream product. However, its launch signals that the next phase of competition in India’s soft drinks market may be driven as much by changing consumer preferences as by the long-standing rivalry between global beverage giants.
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