In a definitive shift from a “niche urban trend” to a mainstream lifestyle choice, sales of zero and low-sugar drinks in India hit a five-year high in 2025. According to industry data released in February 2026, the category’s share of total beverage volumes surged to an average of 30% in 2025, up from just 5% in 2020.
The trend has been propelled by a “youth bulge” demographic, particularly Gen Z, and a heightening awareness of lifestyle diseases like diabetes and obesity.
The “Big Two” Performance: 2025 Data
India’s beverage giants reported record-breaking numbers as they aggressively pivoted their portfolios toward “healthier” variants.
| Company / Entity | 2025 Performance Metric | Key Drivers |
| Coca-Cola India | 30% total volume from zero-sugar | Sales of Diet Coke doubled; Thums Up X Force led the charge. |
| Varun Beverages (PepsiCo) | 59% total volume (Q4 2025) | Record surge for Pepsi Black, 7Up Zero, and Sting. |
| Market Share (Diets/Lights) | 71% held by Coca-Cola | Dominance in the “Light” category through FY25. |
Core Drivers of the 2025 Surge
- Generational Inflection Point: Marketing experts note that Gen Z is choosing healthier lifestyles for both aesthetic motives and health concerns, moving away from high-calorie traditional sodas.
- Affordability & Accessibility: Coca-Cola and PepsiCo have aggressively pushed low-price points (e.g., ₹10–₹20 cans) for sugar-free variants, making them accessible beyond metropolitan elite tiers.
- The “GLP-1” Effect: The rising popularity of weight-reduction and diabetes drugs like semaglutide (Ozempic/Wegovy) and tirzepatide (Mounjaro) in the Indian market has reinforced a culture of calorie-counting.
- Innovation in Flavors: Brands are no longer just offering “Cola” variants. 2025 saw the launch of Fanta Zero Apple, Sprite Zero, and sugar-free coffee and smoothies from chains like Tata Starbucks.
Rise of the D2C Challengers
While the giants dominate, 2025 was a landmark year for homegrown, “zero-sugar first” startups:
- Go Zero: Raised ₹30 crore in Series A funding to expand its low-sugar ice cream and beverage footprint.
- Chini Kum: Secured pre-seed funding to target the diabetic-friendly beverage segment specifically.
- Yummy Bee: Successfully scaled its sugar-free café and RTD (Ready-to-Drink) line with ₹18 crore in total funding.
The Economic Impact
The Indian sugar-free and diabetic-friendly food and beverage market reached a valuation of $1.12 billion in 2024 and is projected to grow at a CAGR of 8.93% through 2033. Supermarkets and online retail remain the dominant channels, accounting for over 32% of sales as consumers prefer browsing diverse, health-labeled assortments.+1
“Indians who were ‘talking health’ but not ‘walking health’ five years ago are now paying closer attention to ingredients. We are seeing a clear reversal of the high-sugar preference.” — Industry Report.
