Zero and low-sugar drinks hit 5-year high in 2025, grab 30% market share

Coca-Cola’s zero-sugar portfolio — spanning Diet Coke, Coke Zero, Thums Up X Force (no sugar), Sprite Zero, Kinley water, and select juice and energy drinks — accounted for a record 30% of its total volume in 2025

• Zero and low-sugar drinks hit a five-year high in 2025
• Coca-Cola and PepsiCo see record sales in no-sugar segments
• Zero-sugar drinks now make up 30% of India's beverage sales

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Zero- and low-sugar beverages have surged to a five-year high in 2025, cementing their place as a mainstream category rather than an urban niche, Economic Times reported.

Coca-Cola’s zero-sugar portfolio — spanning Diet Coke, Coke Zero, Thums Up X Force (no sugar), Sprite Zero, Kinley water, and select juice and energy drinks — accounted for a record 30% of its total volume in 2025, figures cited by Economic Times showed. Diet Coke, the segment leader, saw volumes double year-on-year. Coca-Cola dominates India’s Rs 60,000 crore-plus soft drinks market.

PepsiCo is witnessing similar momentum. No-sugar and mid-sugar drinks contributed 59% of total volumes in the October–December 2025 quarter, up from 53% a year earlier, bottling partner Varun Beverages (VBL) said in its earnings call, as cited by Economic Times. The portfolio includes Sting, Pepsi Black, 7 Up Zero Sugar, Tropicana no-sugar variants, Evervess Soda and Aquafina. VBL termed it the company’s strongest annual jump in this segment.

The shift is spreading beyond fizzy drinks into juices, coffee and smoothies. Tata Starbucks, which rolled out sugar-free flavours across 500-plus outlets in January, told Economic Times that demand spikes early in the year as consumers reset habits and prioritise wellness.

Industry executives told Economic Times that zero and low-sugar beverages now average 30% of overall sales in 2025, up from about 5% in 2020, aided by sharper health awareness, Gen Z preferences and accessible price points. Companies are pushing innovation, smaller packs and social media-led campaigns to widen adoption.

Marketing consultant Srinivas Murthy told Economic Times that India’s urban consumers are at a “generational inflection point” on wellness, with younger demographics driving volume growth.

The trend is further reinforced by rising awareness around diabetes and the growing visibility of weight-management drugs. Meanwhile, investors are backing direct-to-consumer brands such as Go Zero, Yummy Bee and Chini Kum, which position low or no sugar as their core proposition, Economic Times noted.