India’s love affair with sugary drinks is cooling — and zero-sugar beverages are stepping into the spotlight.
Sales of zero- and low-sugar drinks climbed to a five-year high in 2025, marking a clear shift from what was once dismissed as an urban health fad to a full-blown mainstream trend. Industry data shows the segment’s share has surged to an average 30% of total beverage sales in 2025, up sharply from just about 5% in 2020.
Leading the charge is Coca-Cola, where zero-sugar variants now account for 30% of total volumes. This includes Diet Coke, Coke Zero, Thums Up X Force (no-sugar), Sprite Zero, Kinley water, and select juice and energy drink options. Diet Coke alone saw its sales double year-on-year. Coca-Cola currently leads India’s ₹60,000 crore-plus soft drinks market.
Rival PepsiCo is witnessing a similar shift. Its no-sugar and mid-sugar portfolio contributed 59% of total volumes in the October–December 2025 quarter, up from 53% a year earlier, according to bottling partner Varun Beverages. The portfolio includes Pepsi Black, 7 Up Zero Sugar, Sting energy drink, Tropicana no-sugar variants, Evervess Soda, and Aquafina water — marking the company’s strongest year-on-year jump in this category.
Executives attribute the surge to rising health awareness, changing consumer behaviour, and stronger participation from Gen Z. Industry insiders say Indian consumers are now paying closer attention to calorie intake and ingredient labels — without giving up flavour or indulgence.
The trend is no longer limited to fizzy drinks. Coffee chains are also responding to evolving preferences. Tata Starbucks introduced sugar-free flavour options across more than 500 stores in January, citing increased demand for customisable sweetness levels. According to company executives, the start of the year — driven by New Year resolutions and lifestyle resets — typically sees heightened interest in lower-calorie choices.
Coca-Cola is pushing affordability as well, expanding sugar-free offerings at accessible price points starting from ₹10. The company is also introducing no-sugar variants under Schweppes and leveraging digital campaigns to promote newer consumption trends, such as blending Diet Coke with espresso.
Industry observers say India’s urban consumers have reached a generational inflection point in wellness trends, with both health consciousness and aesthetic motivations playing a role. The increasing adoption of diabetes and weight-management drugs such as semaglutide and tirzepatide is also reinforcing dietary shifts.
Investor interest is following consumer behaviour. Direct-to-consumer brands focused on low- or no-sugar positioning — such as Go Zero, Yummy Bee, and Chini Kum — have attracted fresh funding in recent months, signalling growing confidence in the category.
