The Future of D2C Beverage Industry in India

As India's D2C Beverage Startups have not been able to replicate the success of legacy brands, here are some insights on how the future of the industry can shape using Content

Beverage Industry in India, especially talking about Tea and Coffee, is massive. As per online reports, the revenue in the Ready-to-Drink (RTD) Coffee & Tea market in India amounts to INR US$244.2m in 2024. Interestingly, the growth rate of tea market alone is expected to be 4.5% during the next 5 year period. This positive trend has also given rise to numerous D2C Tea and Coffee brands which have innovated, not only in product, but also disrupted distribution, content and marketing trends.

However, these startups have not been able to replicate the massive success of giant legacy brands such as Tata Tea or Nescafe. In fact, most of these companies still face losses and seldom see the kind of brand loyalty and customer retention that legacy brands do.

While I am no expert in commenting on the distribution channels and profitability of these companies, I have put together some thoughts on how these brands can evolve using new-age content and specifically creating a recall, that will start getting customers back and create genuine love for the brand -

The Story & Sustainability

While traditional brands have mastered this art, younger startups need to start putting the background story forward in a much better way. Organic sourcing, the state of art facilities, brewing gardens, and sustainability of operations need to be brought to forefront to have the audience really “connect” with the brand story.

Fair trade practices, ethical employee policies, organic certifications and sustainability compliances need to be marketed and made relatable for the consumer.

Go beyond product features and delve into the origin stories of your teas / coffees, the farmers, and the brewing rituals. Create emotional connections with consumers through compelling narratives.

Personalisation

Understanding the consumer using data points is something that legacy brands will always fall behind at. Create engaging quizzes and questionnaire sections on your website to know the customer tastes and preferences and create subscription boxes with speciality products as per their dietary preferences.

These quizzes and personalisation can be easily taken a step ahead with AI-based recommendations and amazing gifting options made easy. Tailored content based on demographics, preferences, and purchase history will make the customer feel like family. This can easily be topped up with marketing funnels using early access offers, and birthday wishes.

Establishing a Content Network

Focus on your pillar content first - don’t think of just an SEO-driven “Blog” on the website.

Think of a Beverage Media House! This will start going in the right direction with articles covering everything tea-related: brewing guides, history, health benefits, regional varieties, cultural significance, and interviews with tea experts.

Top this up and become more personal with a podcast delving deeper into tea conversations (or “Chai Pe Charcha” as they are popularly known now), featuring interviews with farmers, sommeliers, and enthusiasts. Discuss brewing techniques, explore rituals from different cultures, and share personal stories.

Diversification of content distribution is the key. As I said, don’t think of an SEO-driven blog. Use YouTube for visually engaging videos showcasing tea preparation, tastings, plantation tours, and behind-the-scenes glimpses of your business. Partner with influencers for collaborative content

Community and UGC

Create a dedicated forum for beverage enthusiasts to discuss, share tips, and ask questions. Foster a sense of community and belonging. Use this community to host online tea tastings led by experts, allowing participants to sample different brews and interact with each other.

Further grow this community using channels like Reddit. Create more User Generated Content by encouraging users to share their own tea recipes and brewing rituals through contests or hashtag campaigns. Feature winning entries on your platforms.

Experience Centres

India has a rich history, culture and diversity in beverages like Tea and Coffee. Startups should start innovating and create experience centres on the lines of “wine tasting tours” in Europe. Take people through the whole process, enhance their experience with tasting, videos, olfactory experiences and more.

Startups like Tea Trunk in Goa and World of Coffee in Chikmagalur have done it successfully and such experience centres serve as a wonderful frontend to create a personal and relatable factor for the consumer.

Technology

As a startup, one of the benefits you will always have is agile development and more ability of “Try and Fail”. Invest in some technology play to stand out and use it as a marketing tool - smart tea kettles, infusers, and brewing devices that connect to apps for personalised temperature and timing control are few ideas which can help in creating a niche branding.

The key is to think innovative, out of the box and go big on content that can build on top of your products - the idea is to create a relationship with the consumer and the best way to do this in the current scenario of information overload is - good quality content!