How No-Calorie Drinks Are Transforming Beverage Strategies

Talotma Lal

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February 16, 2026

India’s no-calorie beverage sector is experiencing a significant evolution, moving from a niche urban wellness trend to a pivotal component of mainstream consumption. In the last five years, this segment has seen a sharp increase, reflecting a fundamental shift in consumer preferences toward lower-sugar and zero-calorie options. What began as a diet-focused lifestyle choice is now driving changes in beverage categories, including carbonated drinks, juices, flavored waters, energy beverages, and even coffee, prompting established brands and startups alike to reassess their product strategies.

India’s market for zero- and low-sugar beverages reached a milestone in 2025, marking a substantial transformation from what was previously a niche trend to a widely accepted consumption pattern. Sales of zero-sugar drinks have surged, with companies reporting record volumes and increased market shares across carbonated drinks, juices, energy beverages, coffee, and flavored waters.

Coca-Cola, the leader in India’s ₹60,000 crore-plus soft drink market, revealed that its zero-sugar offerings accounted for an all-time high of 30% of total sales volume in 2025. The company’s no-sugar range includes Diet Coke, Coke Zero, Thums Up X Force (no sugar), Sprite Zero, and various juice and energy drink variants. Notably, Diet Coke’s sales doubled year-on-year, highlighting the growing demand for sugar-free choices. According to internal reports, Coca-Cola held a 71% share of the entire “diets and lights” category in FY25, which includes zero-sugar variants of Thums Up and Sprite. (Coca-Cola is also enhancing customer engagement through data technology and AI, having created Coke Buddy, a self-ordering platform for retailers.)

This aligns with the company’s global strategy of transitioning from primarily a carbonated soft drink company to a multi-category beverage leader—encompassing sparkling drinks (Coke, Sprite, Fanta — zero variants), water and hydration products, coffee, energy drinks, functional beverages, and juices and dairy products. The company now tracks “calories per serving sold” and % of low/zero sugar portfolio as strategic performance metrics.

PepsiCo also experienced its highest year-on-year growth in the no-sugar category. As per its bottling partner Varun Beverages (VBL), no-sugar and mid-sugar drinks represented 59% of PepsiCo’s total volume in the October–December 2025 quarter, up from 53% in the same quarter of the previous year. This was the highest year-on-year increase for the company in the healthier beverage segment. Their range includes Pepsi Black, 7 Up Zero Sugar, Sting energy drink, Tropicana no-sugar variants, Evervess Soda, and Aquafina water. VBL—PepsiCo’s second-largest franchise partner outside the US—attributed this growth to a focused strategy on healthier beverage options.

Changing Consumer Behavior and Pricing Push

The shift in the broader market trend is striking. The sales share of zero- and low-sugar drinks rose from approximately 5% in 2020 to an average 30% in 2025, with an especially sharp increase over the past year, according to a report by the Economic Times. Industry executives state that this transition reflects rapidly evolving consumer preferences, enhanced availability, and more affordable pricing.

Companies are proactively expanding distribution and refining pricing strategies to encourage quicker adoption. For example, Coca-Cola is promoting its sugar-free cans such as Thums Up X Force, Coke Zero, Diet Coke, and Sprite Zero at entry price points starting around ₹10. The company has also launched no-sugar variants of Schweppes flavored water. Marketing initiatives—like social media trends encouraging the mixing of Diet Coke with espresso—have significantly increased visibility among younger consumers. Coca-Cola also introduced Powerade during the ICC World Cup to advance its innovation in lower-sugar hydration beverages.

This change extends beyond carbonated beverages. Coffee chains and smoothie brands are adapting to evolving consumer needs. Experts note that customers increasingly desire greater control over sweetness levels while still enjoying familiar flavors, striving to balance indulgence with a preference for lower-calorie options.

Tata Starbucks has implemented sugar-free flavor options across over 500 stores in January due to increased demand, particularly at the start of the year when consumers reassess their routines and embrace New Year’s health resolutions.

Gen Z, Wellness Trends, and Health Awareness Drive Demand

Industry experts characterize this period as a generational inflection point. Urban consumers in India are now moving from discussions about health to actively pursuing healthier choices, with Gen Z leading this change. This demographic is driven by heightened awareness of wellness and certain aesthetic aspirations. Given India’s large youth population, these shifting preferences are now translating into considerable increases in overall beverage volumes.

Health trends significantly reinforce this change. Growing knowledge of diabetes, calorie intake, and weight management—as well as increased visibility of weight-reduction medications like Semaglutide and Tirzepatide in the Indian market—are influencing consumer choices. Diet and zero-sugar drinks, once seen as niche or lifestyle statements, are now perceived as practical everyday alternatives rather than compromises.

The momentum of this shift extends beyond large multinational beverage corporations to include startups and direct-to-consumer brands.

Private equity investors are backing emerging companies focused on low- or no-sugar products. For instance, Go Zero secured ₹30 crore in Series A funding from DSG Consumer Partners, Saama Capital, and V3 Ventures. Café chain Yummy Bee raised ₹18 crore in funding, while zero-sugar beverage startup Chini Kum received ₹1 crore in pre-seed capital earlier this month. These investments suggest strong investor confidence in the lasting impact of the health-oriented consumption trend.

In summary, India’s beverage landscape is undergoing a fundamental transformation. What started as an urban wellness trend has grown into a widespread, volume-driving segment across various price categories. As consumer awareness increases, innovation accelerates, and companies expand affordable options, zero- and low-sugar beverages are emerging as a crucial growth engine in India’s soft drinks and wider beverage industry.

Key Takeaways

• India’s no-calorie beverage market is rapidly evolving into a mainstream consumption trend.
• Zero- and low-sugar drinks have seen a significant rise in sales, hitting nearly 30% of the market share in 2025.
• Coca-Cola and PepsiCo are leading the charge with substantial investments in their sugar-free portfolios.
• Changing consumer preferences, affordability, and improved distribution are driving this growth.
• Gen Z and a heightened awareness of health are pivotal in influencing beverage choices.
• Startups focused on low-sugar options are attracting sizable investments, reflecting long-term investor confidence.