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Soft drink makers catch the fitness bug. But is zero-sugar really healthy?
New Delhi/Bengaluru: Coca-Cola Co. last week provided some evidence of the urban Indian's growing propensity to swap sugary drinks for sugar-free variants—'a record-breaking 2.5 million-unit cases" of its 'no-sugar" Thums Up XForce sold in just three months.
Coca-Cola, which is the world's largest beverage company, its closest rival PepsiCo Inc., and Reliance Consumer Products, which revived the iconic Campa Cola two years ago as Campa, all have zero-sugar variants catering to India's growing obsession with counting calories.
With consumers lapping up these 'healthier" fizzy drinks, beverage makers have been able to expand their product lines with zero-sugar or low-sugar variants at different prices without needing separate bottling investments.
According to researcher Mintel Group's Global New Products Database, Indian non-alcoholic beverage brands introduced more products with 'minus" claims—such as low-sugar or no-sugar—than 'plus" claims between July 2019 and June 2024.
In the five years to May this year, the number of products in India with 'low sugar' and 'reduced sugar' claims surged 483%, and products with 'sugar-free' claims increased 142%, according to Mintel. Urban consumers, especially those in metropolitan cities, are leading this shift, it added.
'Health consciousness is rising as preventive care and healthy ageing take centre stage, driven by escalating obesity and diabetes, even among younger adults," said Anamika Banerji, senior food and drink analyst at Mintel India. 'This has set the stage for innovations that prioritise low or no sugar."
A spokesperson for Coca-Cola said demand for the company's diet and no-calorie variants—including Coke Zero, Diet Coke, Sprite Zero, and Thums Up XForce—was gaining momentum in India, especially among young adults, fueled by changing lifestyles and choices. Coca-Cola declined to share specific data for these brands.
In recent years, the company has introduced brands such as Bodyarmor Lyte, a drink with electrolytes; Charged, a sports drink; and Honest Tea in India.
How safe is 'no-sugar'?
The primary difference between regular and 'healthier" soft drinks lies in the sugar content, calorie count, and type of sweetener used.
Thums Up X Force's nutritional information label, for instance, mentions 0 kilocalories of energy and 0 g of total sugars and added sugars per 100 ml. The regular Thums Up mentions 42 kcal per 100 ml, and 10.4 g of total sugars and another 10.4 g of added sugars.
However, Thums Up X Force's ingredients list, per the company's website, mentions sugar and sweeteners (955, 950), which are 'International Numbering System' figures representing sucralose and acesulfame potassium, respectively.
In 2023, after the World Health Organization raised concerns about the use of artificial sweeteners, the Food Safety and Standards Authority of India said it would look into the impact of such additives on the Indian population. FSSAI has also laid down safety limits for the use of noncaloric sweeteners such as stevia, acesulfame potassium, aspartame, and sucralose.
Last year, the food safety regulator approved a proposal to display nutritional information related to total sugar, salt, and saturated fat in bold letters and a larger font size on the labels of packaged foods. It is also considering a front-of-pack nutrition-labelling system, along with a star rating to indicate a food or beverage's nutritional value.
Last year, FSSAI also directed food business operators to remove any claims of '100% fruit juices" from labels and advertisements of reconstituted fruit juices.
The regulator's increased focus on added sugars in beverages is pushing beverage makers to build a portfolio comprising no-sugar brands, said K. Ramakrishnan, managing director (South Asia), at market researcher Kantar's Worldpanel division.
According to Kantar, the number of Indian households consuming no-sugar beverages has grown by 78% in the last four years. However, Ramakrishnan said this is still an urban, big-city category and has a way to go before reaching rural areas.
The covid pivot
PepsiCo's largest bottler in India, Varun Beverages Ltd, said low-sugar and no-sugar versions of brands such as 7UP, Pepsi, and Gatorade accounted for 44% of its volume mix in the country in 2024. Including its operations in Africa, Nepal and Sri Lanka, low-sugar and no-sugar versions accounted for 53% of its consolidated sales volume.
'Every product will slowly start moving towards mid-cal and no-sugar," Ravi Jaipuria, chairman of Varun Beverages, said during the company's third-quarter earnings call in February.
A spokesperson for PepsiCo India said more than 50% of the company's portfolio comprised low-calorie and zero-sugar products.
'While there has been some consumer interest towards sugar-free and low-calorie beverages over the last decade, a noticeable shift came during and after the pandemic years," the spokesperson said. 'At-home consumption requirements and physical activity patterns evolved during this time. This pivot has encouraged innovation around zero-sugar formats across our portfolio."
Dabur India Ltd, which sells fruit drinks and juices under the 'Real' brand, too, is focused on reducing sugar content across its beverage portfolio.
In 2018, the consumer goods company pledged to reduce sugar by 5% on two-thirds of its beverage portfolio in three years, and by another 5% in half of its beverage portfolio by 2023. By 2022, Dabur surpassed its targets, reducing sugar by around 21%.
'... We are currently working on sugar reduction to the tune of an additional 20% in Real core beverage range," said CEO Mohit Malhotra.
Last year, Hector Beverages Pvt. Ltd, which sells the Paper Boat brand of non-aerated drinks, introduced a line of no-sugar sparkling water in multiple flavours.
Duhkaar Food and Beverages Pvt. Ltd, which raised capital from Chennai Angels last year, sells nearly 200,000 bottles of its Polka Pop brand of sparkling water every month, according to the company. The Chennai-based startup, which was launched four years ago, is now gearing up to introduce no-sugar soft drinks, founder Gaurav Khemka told Mint.
