The study attempts to determine the Indian consumers’ preference for health drinks and the criteria used by consumers to choose health drinks. Systematic random sampling was employed to collect data from 299 respondents. The study analyzed the consumers’ preference for six types.... six types of health drinks segregated on the basis of Ayurveda. For testing of hypotheses, ANOVA and paired sample t-test were employed. Brand name was found to be the most important extrinsic cue followed by price and packaging. Palatability was found to be the most important intrinsic cue followed by nutrient composition influencing purchase decision for health drinks. Past experiences were found to be the most important source of personal reference followed by doctor’s and co-worker’s/ friend’s recommendation. In case of non-personal/ promotional cues, health magazines were found to be the most important cue followed by sales promotion measures and store displays. Remove the highlighted lines and include only the following line. The variable of age and income appears to be valid segmentation bases for segmenting the health drink industry.