The zero effect: How no-calorie drinks are reshaping beverage playbooks

India’s no-calorie drinks market has entered a decisive growth phase, transitioning from a niche urban wellness proposition into a mainstream consumption driver. The segment’s share has expanded sharply over the past five years, reflecting a structural pivot in consumer preferences toward lower-sugar and zero-calorie alternatives. What began as a diet-led lifestyle choice is now influencing mass beverage portfolios across carbonated drinks, juices, flavoured water, energy beverages and even coffee, prompting legacy players and startups alike to recalibrate product strategies.

India’s zero- and low-sugar beverage market hit a five-year high in 2025, marking a decisive shift from what was once considered a niche urban trend to a mainstream consumption pattern. Sales of zero-sugar drinks surged sharply, with companies reporting record volumes and rising category shares across carbonated drinks, juices, energy beverages, coffee, and even flavoured water.

Coca-Cola, which leads India’s ₹60,000 crore-plus soft drinks market, reported that its zero-sugar portfolio reached an all-time high of 30% of its total volume sales in 2025. The company’s no-sugar lineup includes Diet Coke, Coke Zero, Thums Up X Force (no sugar), Sprite Zero, Kinley water, along with juice and energy drink variants. Diet Coke alone saw its sales double year-on-year, underscoring the accelerating demand for sugar-free alternatives. Executives cited internal data showing that Coca-Cola commanded a 71% share of the total “diets and lights” category in FY25, including zero-sugar versions of Thums Up and Sprite. (Coca-Cola is also strengthening consumer engagement through data technology and AI, and has developed Coke Buddy, a self-ordering platform designed for retailers.)

This is much in line with what the company is doing globally – repositioning itself from a carbonated soft drink giant to a multi-category beverage company — spanning sparkling (Coke, Sprite, Fanta — zero variants), water & hydration, coffee, energy drinks, functional beverages and juice & dairy. In fact, it globally tracks “calories per serving sold” and % of low/zero sugar portfolio as strategic metrics.

PepsiCo also posted its highest year-on-year growth in the category. According to its bottling partner Varun Beverages (VBL), no-sugar and mid-sugar drinks accounted for 59% of PepsiCo’s total volume in the October–December 2025 quarter, up from 53% in the corresponding quarter the previous year. This marked the company’s single biggest year-on-year surge in the healthier beverages category. The portfolio 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 the growth to a sustained focus on healthier beverage offerings.

Changing consumer behaviour and pricing push

The broader market trend is striking. The sales share of zero- and low-sugar drinks rose from about 5% in 2020 to an average 30% in 2025, with a particularly sharp spike over the past 12 months, according to a report by the Economic Times. Industry executives said the transformation reflects rapidly changing consumer preferences, improved availability and affordable prices.

Companies are aggressively expanding distribution and and refining pricing strategies to drive faster adoption. Coca-Cola, for instance, is pushing sugar-free cans such as Thums Up X Force, Coke Zero, Diet Coke and Sprite Zero at entry price points starting around ₹10. It has also introduced no-sugar variants of Schweppes flavoured water. Marketing campaigns — including social media trends such as blending Diet Coke with espresso coffee mixes — have further amplified visibility among younger consumers. The company also launched Powerade during the ICC World Cup as part of its innovation push in lower-sugar hydration beverages.

The shift is no longer confined to fizzy drinks. Coffee chains and smoothie brands are adapting to changing preferences. Industry experts noted that customers increasingly want greater control over sweetness levels without compromising familiar taste, seeking to balance indulgence with lower calorie intake.

Tata Starbucks introduced sugar-free flavour options across more than 500 stores in January, noting a spike in demand at the start of the year when consumers reassess routines and adopt New Year health resolutions.

Gen Z, wellness trends and health awareness drive demand

Industry experts view this phase as a generational turning point. India’s urban consumers have shifted from simply discussing health to actively embracing healthier choices. Gen Z, as per the experts, is at the forefront of this transition, driven by heightened wellness awareness as well as aesthetic goals. With India’s large youth population, these evolving preferences are translating into significant gains in overall beverage volumes.

Health trends are also reinforcing the shift. Rising awareness of diabetes, calorie intake and weight management, along with the growing visibility of weight-reduction drugs such as Semaglutide and Tirzepatide in the Indian market, are shaping consumer behaviour. Diet and zero-sugar drinks, once considered acquired tastes or lifestyle statements, are increasingly viewed as practical everyday substitutes rather than compromises.

The momentum has extended beyond large multinational beverage companies to startups and direct-to-consumer brands.

Private equity investors are backing emerging players positioned around low- or no-sugar propositions. Go Zero raised ₹30 crore in Series A funding from DSG Consumer Partners, Saama Capital and V3 Ventures. Café chain Yummy Bee secured ₹18 crore in funding, while zero-sugar beverage startup Chini Kum raised ₹1 crore in pre-seed capital earlier this month. These investments reflect strong investor conviction in the long-term sustainability of the health-driven consumption trend.

Overall, India’s beverage market is undergoing a structural transformation. What began as an urban wellness fad has evolved into a broad-based, volume-driving segment across price tiers and categories. As consumer awareness deepens, innovation accelerates, and companies expand affordable options, zero- and low-sugar beverages are emerging as a central growth engine in India’s soft drinks and broader beverage industry.