What's Pushing the Growth of Low-Sugar Beverages in India

In India, the popularity of sugar-free drinks has increased as a substitute for those with high sugar content. In the beverage sector, these low-calorie and low-sugar choices are readily accessible. A lot of sugar-free beverages are sweetened with artificial sweeteners like aspartame, stevia, and sucralose, which give them a nice flavor without adding extra calories and will propel the market for sugar-free beverages throughout the projection period.

With many top brands like Pepsico or Coke and Budweiser, which have zero calorie non-alcoholic beverages, many other brands are venturing into this new segment wherein they are launching non-alcoholic drinks that have zero sugar or less sugar. Brands are coming up with more such products in the market, because many consumers are being health conscious these days.

Market Size

The global market for sugar-free beverages was valued at US$ 7.9 billion in 2022 and is projected to increase at a compound annual growth rate (CAGR) of 4.2% from 2023 to 2030, reaching at US$ 10.9 billion. Meanwhile, India's non-alcoholic beverage industry is expected to expand by 6.72% between 2024 and 2028, reaching a market size of US$21.49 billion.

Exploring Zero-Sugar and Zero-Calorie Beverages

As consumers shift towards healthier options, the demand for zero-sugar, zero-calorie beverages is on the rise, especially among those managing sugar intake or following low-carb diets. The market is expected to grow at a CAGR of 5%, with major players like Coca-Cola leading, while smaller brands offer innovative flavors and functional benefits such as energy and immunity support.

“The idea of a low-sugar drink emerged from our commitment to offering products that align with evolving consumer preferences and better-for-you options without sacrificing taste. As people become increasingly mindful of what they consume, we saw the opportunity to launch a line of fifteen-flavoured low-sugar kombuchas. Much more recently, we introduced India’s first clean-label tonics, available in four distinct flavours,” said Shishir Sathyan, Co-Founder, Mossant Fermentary who highlighted that the trend toward low-sugar and clean-label products is only growing. Consumers are demanding transparency, simplicity, and less added sugars in the beverages that they choose. This shift has inspired us to expand further into this space, particularly with our new tonic line. We aim to make these drinks easily accessible through quick commerce and modern trade. 

He added, “That being said, the journey wasn’t without challenges. Developing low-sugar beverages that deliver both taste and quality took extensive research and innovation. We use proprietary processes to ensure our tonics remain clean-label while maintaining the delicate balance of fermentation for our kombuchas, all without relying on artificial preservatives. The result has been worth it, and we’re thrilled to be part of the movement towards more mindful, health-focused drinking experiences.” 

The Shift in the Market

Commenting on the zero calorie drinks, Ishan Varshnei, CEO and Co-Founder of Latambarcem said, “In today’s market, the demand for zero-sugar and low-calorie beverages has shifted from being a trend to a consumer expectation. At Borecha, we’ve recognized the growing need for healthier alternatives early on and have pioneered a new path in functional beverages. Moving away from the traditional sugary drinks, we’ve focused on crafting drinks that not only taste great but also promote wellness.”

“Our flagship low-sugar probiotic kombucha, along with our zero-sugar kombucha seltzers, exemplifies this vision. With less than 3.3 kcal per 330ml can, and infused with adaptogens, probiotics and prebiotics, we are creating beverages that support gut health, boost metabolism, and give consumers a guilt-free experience,” added Ishan Varshnei who explained that through consistent R&D, we are pushing the boundaries further with upcoming zero-calorie products aimed at providing functional health benefits without compromising on flavour or enjoyment.

Explaining further, he added, “As we continue to innovate, we’re helping raise consumer awareness about healthier choices, offering real competition to traditional sugary drinks, and shaping the future of the beverage industry. Our mission is to lead by example, promoting wellness-focused beverages that align with the evolving health-conscious lifestyle.”

Healthier Drink Options

“As consumers become increasingly health-conscious, they're shifting towards healthier drink options in both the alcoholic and non-alcoholic spaces. The hard seltzer market in the US, for instance, has experienced remarkable growth, surging from $1.3 billion to $8.9 billion in 2023. This trend is expected to emerge in India as well. Notably, consumers are moving away from sugary syrups in cocktails, opting for natural sweeteners like honey water and dates instead,” said Jittin Merani, Co-Founder of The Glenwalk who elaborated that anticipating this shift, we launched a zero-calorie ginger ale, enabling consumers to indulge in their favorite drinks without worrying about calorie intake.

On-going Trends
1.    Natural Sweeteners like Stevia and Monk Fruit are gaining popularity.
2.    Functional Ingredients, including probiotics and vitamins, are becoming common.
3.    Sustainability in packaging and sourcing is a key factor.
4.     Premiumization is allowing brands to create higher-quality offerings.
Challenges
1.    Balancing taste with health benefits remains difficult.
2.     Regulatory scrutiny is increasing around health claims and labeling.
3.    Educating consumers about new sweeteners is vital for trust.
4.    As competition grows, brands need strong product differentiation.

The future of zero-calorie beverages is promising, but staying competitive will require continuous innovation and consumer education. To reach a larger audience, many brands are also extending their distribution networks.