The Great Divide: A Tale of Two Online RTD Beverages Markets   

The Great Divide: A Tale of Two Online RTD Beverages Markets   

Nikhil DalalNikhil Dalal

The online non-alcoholic RTD beverages market (excluding water) is now defined by a sharp divide between an increasingly discerning Quick Comm shopper and the more traditional shopper shopping in other online channels. Proprietary data from Benchmark indicates that this shift in GMV mix signals that brands must tailor their products and strategies to meet the unique and sometimes opposite demands of each audience.  

Online shoppers are not a single group. Their behaviour is polarizing between the immediacy of Quick Comm and the more traditional e-commerce of the Rest of Online. 

  • Two Different Worlds: In 5 (Dairy, Iced tea & Cold coffee, Sparkling mixers, Coconut and Carbonated drinks) of the 9 categories analysed, share changes between Q Comm and the rest of the online are in opposite direction. This is most evident in Dairy-based Drinks, which gained significant share in Quick Comm but lost ground in the Rest of Online channels. The opposite occurred with Carbonated Drinks. This highlights the need for separate strategies and product assortments. 

  • The Rapidly Evolving Quick Comm Shopper: Quick Comm shoppers are becoming more discerning. They are gravitating towards a different set of beverages, as seen in gains for Dairy based drinks, Iced Tea & Cold Coffee, Sparkling Mixers, and Coconut Based Drinks. These choices suggest a move from conventional options like Carbonated Drinks towards what may be perceived as healthier and more modern beverages. 

  • Small Shifts, Big Picture: These shifts are subtle but powerful. While categories like Carbonated Drinks and Non-Mango Fruit Flavored Drinks still dominate online GMV, their share is eroding, paving the way for a more diverse market. Understanding these changes early is crucial for brands to stay ahead of the curve. 

Implications: The Death of the One-Size-Fits-All Online Strategy 

For Brands 

To succeed in this increasingly fragmented market, brands must adopt a highly targeted approach. Brands need to abandon a blanket online strategy and instead focus on channel-specific assortments. For example, in Quick Comm, emphasize products that align with the increasingly discerning shopper. And for the Rest of the Online channels, capitalize on their strengths in categories like Mango Flavoured Drinks and investigate the resurgence of Carbonated Drinks 

For Platforms 

The distinct shopper behaviours in Quick Comm and the Rest of the online channels present a clear opportunity for platforms. Platforms should optimize their user experience, search algorithms, and product recommendations to reflect these divergent shopping missions. By curating unique product bundles and tailored promotional campaigns for each channel, platforms can enhance user experience and drive sales for the categories that are winning in their specific environment. 


The insights have been derived from Redseer ‘Benchmarks’, the most reliable insights platform on the India Internet Landscape