PET Bottles Drive Accessibility and Sustainability in India's Energy Drink Market

PepsiCo strategically promotes its energy drinks through PET bottles to democratize the category

In response to inflationary pressures, major players have adopted strategies prioritizing economies of scale, focusing on catering to India's extensive consumer base and leveraging local bottling units. This localized approach supports cost efficiency and market penetration across urban and rural areas.

In 2017, PepsiCo launched Sting energy drink at INR 50 per 250ml can, significantly undercutting Red Bull's pricing. Recognizing the need for affordability, particularly in rural areas, PepsiCo introduced Sting in a 250ml PET bottle priced at INR 20 by 2020, emphasizing accessibility. This strategic shift propelled Sting to a leadership position in the market, opting for PET bottles over aluminum cans for cost-effectiveness and expanded availability.

Partnering with Varun Beverages for local bottling provided a competitive edge against Red Bull's imports, allowing Sting to manage costs amid inflation. Introducing the 250ml SKU at INR 20 boosted market penetration, making Sting affordable and convenient for on-the-go consumption, highlighting PET bottles' role in India's evolving energy drinks sector.

Market Dynamics and PET Bottle Dominance

In India, energy drinks are shifting to smaller pack sizes like 200ml and 250ml, predominantly in PET bottles poised for further expansion due to logistical advantages and consumer appeal. These bottles not only offer affordability but also enhance portability, catering to diverse consumer segments.

Driven by macroeconomic factors such as inflation, escalating raw material and labor costs have emphasized affordability, favoring smaller, cost-effective packaging formats. India's per capita off-trade energy drink consumption stands at 0.4 liters, indicating substantial growth potential compared to the global average of 2.1 liters.

Circular Economy Initiatives for PET Bottles

PepsiCo and Coca-Cola are intensifying sustainability efforts through robust PET recycling initiatives. Varun Beverages collaborates to establish a PET recycling facility launching by 2025, aiming to recycle nearly a quarter of its PET bottle demand, significantly contributing to environmental conservation.

Coca-Cola India introduced 1-liter rPET bottles for its water line and 250ml and 750ml rPET bottles for carbonated beverages through partnerships with bottlers like Moon Beverages Ltd and SLMG Beverages Ltd. Their pilot program targets PET collection and recycling across 36 stores initially, aiming to collect 500,000 bottles in 2024 and expand to 200 stores by 2025. These initiatives underscore a collective commitment to boosting PET bottle recycling rates and promoting sustainability across the industry.

Future Outlook

Ongoing innovations and sustainability efforts position PET bottles to sustain their pivotal role in India's energy drinks and broader soft drinks markets. Emphasizing affordability, logistical efficiency, and sustainable practices ensures PET remains integral to India's dynamic beverage industry landscape.