Still drinks include ready-to-drink fruit or non-fruit based drinks with a juice content lower than 25 per cent, like mango Frooti and Appy. The category also includes sweetened flavoured waters.
The success of such brands in India (for that matter even outside India) has largely been the result of a slowing demand for carbonated drinks, which declined in 2006 for a second consecutive year.
If the huge loose sales segment (sales from juice vendors and hotels) is taken into account, still drinks replace carbonated beverages as the leading category in 2006.
The shift has been partially because of fears of pesticide contamination in carbonated drinks, the report says. "This pressure on carbonates has given still drinks an opportunity, and with competitive pricing, still drinks have taken full advantage (of the situation)," the report says.
"Demand has been further buoyed by the introduction of new larger 1.2 litre PET family pack formats that provide another option to carbonates."
However, Indian consumers appear somewhat cautious in their approach to new products and flavours. "Development of categories such as iced tea (ready-to-drink tea), sports drinks and soy drinks has been slower than in other countries," the report said.
Despite their lower base, nectars (brands like Appy, Tropicana, Real) too have progressed.
The growth for packaged nectars was more than 40 per cent, driven largely by Parle's Appy. This can be attributed to the pricing of the drink, which is comparable to carbonates and still drinks.
Dabur's Real and PepsiCo's Tropicana are two nectars derived from juice brands that have successfully targeted institutional and at-home consumption.
As a category, nectars are expected to grow by more than 12 per cent in 2007.
The soft drink market has grown on the back of significant economic growth in India. Cheaper drinks have proved to be strong gainers, as a majority of consumers still don't enjoy substantial spending power.
Loose sales by street vendors are an integral component of the Indian soft drinks market. This accounts for huge annual volumes of unbranded, unpackaged drinks and provides consumers with an extremely convenient and cost-effective point of purchase.
As well as offering access to ethnic and traditional beverages, not always at a lower price, this channel offers alternatives to the branded products which have a much more global character.
In the Still category alone, sales of loose fresh lime juice, coconut water, sugarcane juice and other flavours equate to a staggering 2,000 mn litres.