Zerodha's Nikhil Kamath asks a big billion-dollar business question: Can India build its own beverage culture? Top experts reply...

In a latest episode of the WTF podcast by Zerodha Co-founder Nikhil Kamath, leading craft beverage experts discussed the challenges and opportunities within India's craft beverage sector. The panel included Rahul Reddy of Subko, Matt Chitharanjan of Blue Tokai, Aneesh Bhasin of Svami, and Adithya Kidambi of Mossant. They shared their journey of navigating regulations, shifting consumer habits, and competing with legacy brands to bring high-quality, locally made beverages to the mainstream.

Notably, India has long been a tea-drinking nation, but in recent years, a new wave of craft beverage brands has started reshaping the way the country drinks. Specialty coffee, kombucha, and premium mixers are carving out space in an industry dominated by mass-produced options.

According to market intelligence platform Statista, revenue from the non-alcoholic drinks market in India, especially via supermarkets and convenience stores, is projected to reach $16.25 billion in 2025. This segment is expected to grow at an annual CAGR of 4.81% from 2025 to 2029.

During more than three hours of conversation, beverage experts discussed India's potential to develop a unique beverage culture akin to East Asian markets like Japan and Korea. Kamath also asked experts if India has the potential to create a global beverage brand that truly reflects its cultural heritage.

"Do you think India can develop its own unique beverage culture? Is it harder to do business here than in other places, or is that just a perception? If someone's starting a beverage brand, should they start in Goa? What are some of the challenges you've faced with bottling and distribution?" he asked.

"India has such a rich history and culture, and there's so much potential to create unique and interesting beverages that are rooted in that culture," said Kidambi of Mossant.

However, the fragmented regulatory environment and challenging compliance processes were key concerns. "India is extremely fragmented. You can have progressive policies, but the execution depends on the local officer, which makes it difficult," said Reddy of Subko. He emphasised that persistence is crucial when navigating regulatory hurdles.

Goa emerged as a "bright spot" for new beverage brands. "Goa is the most progressive state when it comes to beverages. They are open to new ideas and supportive of small businesses," said Bhasin. The panel agreed that experimenting in Goa could offer "better visibility" and support for new brands. A significant part of the discussion also revolved around the importance of building strong local brands with global appeal. "One of the most important things is to stay true to your roots," said Reddy, adding that Subko's approach focuses on celebrating Indian culture through its coffee brand.

Experts say while the demand for high-quality, homegrown beverages is growing, breaking into this space isn’t as easy as it looks. Import duties drive up costs, fragmented supply chains make scaling difficult, and price-sensitive consumers often hesitate to pay a premium. Unlike mass-market beverages, where marketing muscle can drive sales, craft brands have to build awareness, educate consumers, and create demand from scratch.