Sugar-Free : Health Awareness Grows, but Safety Concerns Remain

New Delhi: India’s beverage industry is witnessing a major shift as consumers increasingly prefer ‘zero-sugar’ or ‘low-sugar’ drink options over sugary beverages. This trend is being driven primarily by young urban consumers. The key reasons behind this shift include rising health consciousness, the growing prevalence of obesity and diabetes, and lifestyle changes prompted by the COVID-19 pandemic.

New Trends in the Beverage Industry:

Major beverage companies like Coca-Cola, PepsiCo, and Reliance Consumer Products have responded to this changing demand by introducing sugar-free variants in their product lines.

Coca-Cola’s no-sugar ‘Thums Up XForce’ recorded record sales, selling 2.5 million unit cases within three months. Demand for their other sugar-free products such as Coke Zero, Diet Coke, and Sprite Zero is also rising in India.
Varun Beverages Ltd., PepsiCo’s largest bottling partner, reported that in 2024, low-sugar and sugar-free versions of 7UP, Pepsi, and Gatorade contributed 44% to their total volume mix. A PepsiCo India spokesperson stated that more than 50% of their product portfolio now consists of low-calorie and sugar-free beverages.
Dabur India Ltd. is also reducing the sugar content in its ‘Real’ juice brand. Since 2018, the company has cut sugar levels by about 21% and is working to reduce it by an additional 20%.
Companies like Hector Beverages Pvt. Ltd. (Paper Boat brand) and Duhkaar Food and Beverages Pvt. Ltd. (Polka Pop brand) have also launched sugar-free sparkling water and soft drinks.

According to research firm Mintel Group, between July 2019 and June 2024, Indian non-alcoholic beverage brands have significantly increased the number of products with ‘minus’ claims (such as low sugar or sugar-free). By May this year, products with ‘low sugar’ or ‘reduced sugar’ claims grew by 483%, while those with ‘sugar-free’ claims rose by 142%.

Health and Safety Concerns:

Although brands are promoting sugar-free drinks as healthy alternatives, concerns about artificial sweeteners are growing. Following the World Health Organization’s (WHO) 2023 warning regarding the use of artificial sweeteners, the Food Safety and Standards Authority of India (FSSAI) announced an inquiry into their effects on the Indian population.

FSSAI has set safety limits for the use of calorie-free sweeteners such as stevia, acesulfame potassium, aspartame, and sucralose.
For example, the ingredient list of Thums Up XForce mentions sugar along with sweeteners 955 and 950, referring to sucralose and acesulfame potassium respectively.

Last year, FSSAI approved a proposal to prominently display nutritional information on packaged food labels regarding total sugar, salt, and saturated fat in bold and larger fonts. They are also considering a front-of-pack nutrition labeling system and star ratings to indicate the nutritional value of foods and beverages.
Additionally, FSSAI directed food business operators to remove claims like “100% fruit juice” from the labels and advertisements of reconstituted fruit juices.

According to Kantar data, the number of Indian households consuming sugar-free beverages has increased by 78% over the last four years. However, this trend is still mainly limited to urban and metro areas, with significant room for growth in rural regions, said K. Ramakrishna, Managing Director at Kantar.
Varun Beverages Chairman Ravi Jaipuria stated, “Every product will gradually move towards mid-calorie and no-sugar variants.”