Regional beverage companies across India are rapidly embracing the no-sugar trend, launching health-focused variants to capture the growing segment of health-conscious consumers. This shift represents a significant departure from traditional sugar-heavy formulations as companies respond to rising awareness about diabetes and obesity.
Regional Players Lead Innovation
Punjab-based Lahori Zeera is set to launch a stevia-based version of its flagship drink by March, according to co-founder and chief operating officer Nikhil Doda. The company is positioning its sugar-free variant competitively in the market with strategic pricing.
Doda defended the nutritional profile of existing products, explaining that they combine sugar, salt and lemon juice, functioning "like ORS" (oral rehydration solutions). He noted that while oral rehydration solutions contain sugar and salt, they aren't viewed as sugary beverages.
Southern India Embraces Sugar Reduction
Karnataka-based House of Bindu, a legacy player that pioneered jeera drinks in 2002, has made substantial changes to its product formulations. Managing director Sathya Sankar revealed significant sugar content reduction across the company's portfolio.
"We are increasingly seeing youngsters wanting low-sugar drinks," said Sankar, emphasizing the brand's focus on price-conscious yet health-conscious consumers. The company plans to maintain competitive pricing for new products, with Sankar stating his belief in "producing quality products and passing on the value to the ultimate consumer."
Legacy Brands Adapt to Market Trends
Sosyo Hajoori, a 103-year-old legacy player based in Surat, Gujarat, is also preparing for the sugar-free transition. Director Aliasgar Hajoori, a fourth-generation entrepreneur, acknowledges that while sugar remains dominant in the broader beverage market, low-sugar and no-sugar variants are gaining momentum.
Reliance Consumer Products Ltd acquired a 50% equity stake in Sosyo Hajoori Beverages Pvt. Ltd in January 2023, with the Hajoori family retaining the remaining stake. The company produces legacy Indian drinks, including the flagship Sosyo soda made using grapes and apples. The brand is planning to launch low- to no-sugar variants sometime next year.
Market Dynamics and Pricing Strategy
Industry experts note that sugar-free variants typically command premium pricing due to higher costs. Santosh Sreedhar, partner at Avalon Consulting, explained that sugar alternatives are more expensive than sugar itself, and lower sales volumes typically result in sugar-free drinks retailing at a 30-50% premium over regular variants.
However, competitive pricing strategies are emerging as companies seek to expand market reach. The ₹10 price point has become particularly significant, with Ravi Jaipuria, chairman of Varun Beverages, calling it an "extremely aggressive" but powerful price point for expanding consumption beyond metros.
Market Performance and Future Outlook
The trend toward sugar-free alternatives is showing substantial traction in established markets. Raj Gandhi, president and whole-time director at Varun Beverages Ltd, revealed impressive adoption rates for low-sugar and no-sugar products.
Sreedhar of Avalon Consulting identified key market drivers, noting that "there is a real consumer demand for sugar-free variants, driven by rising awareness around diabetes, obesity and high BMI." He highlighted that India has about 100 million adults living with diabetes, pushing up demand for sugar-free products across categories including juices, sweetmeat and chocolates.
Despite the growing trend, industry leaders maintain that traditional sugar-based beverages will continue to dominate. Hajoori of Sosyo believes the low- to no-sugar beverage market will remain small compared to sugar-containing beverages, stating that "Indians still love sweets and sugar will dominate, but these two segments will co-exist in the future."
The expansion of sugar-free offerings is gradually moving beyond affluent urban areas to tier-2 and tier-3 towns as brands test real demand. While the category is expected to remain niche, experts anticipate it will become an important proposition over time, commanding premiums similar to other health-focused segments.
