India’s food regulator has directed manufacturers of high-caffeine beverages, including PepsiCo, Red Bull, Monster Beverage, Reliance Consumer Products and Hell Energy, to remove the term “energy drink” and similar descriptions from product labels, triggering concern among manufacturers over the potential impact on branding and sales.
The Food Safety and Standards Authority of India (FSSAI) has reportedly given companies 90 days to comply with the directive after rejecting industry objections during a meeting with beverage manufacturers and industry representatives last week.
The move follows FSSAI’s position that there are no prescribed food standards in India for products marketed as “energy drinks”. The regulator has also objected to promotional claims suggesting that such beverages “vitalize body and mind” or help overcome “general weakness”, describing these as misleading.
According to Reuters, the Indian Beverage Association (IBA), representing several leading beverage companies, had urged the regulator to adopt a consultative approach, warning that an abrupt change could damage established brands, disrupt business operations and confuse consumers. However, FSSAI reportedly maintained its stance and indicated that companies could seek legal recourse if they disagreed with the decision.
The labelling change affects one of India’s fastest-growing beverage categories. According to market research cited by Reuters, India’s energy drinks market is projected to reach US$1.6 billion by 2028, expanding at a compound annual growth rate (CAGR) of 12.6%, significantly outpacing growth in markets such as the United States and China.
The category has witnessed rapid expansion since PepsiCo introduced Sting in India in 2017, with affordable pricing helping drive consumption among younger consumers and in semi-urban and rural markets. Other key players include Red Bull, Monster Beverage, Reliance Consumer Products’ Campa Energy and Hell Energy.
The regulatory action also reflects growing global scrutiny of beverages containing high levels of caffeine, sugar and taurine. Several countries have introduced restrictions on the sale and marketing of such products, particularly among younger consumers. England is set to ban the sale of high-caffeine energy drinks to children under 16 from 2027, while certain regions in Pakistan require these products to be labelled as “stimulant drinks.”
The enforcement has already begun at the state level. Rajasthan authorities recently seized stocks of products marketed as energy drinks and directed major e-commerce platforms to ensure that beverages are no longer promoted using the “energy drink” category.
The development is expected to prompt beverage manufacturers to revise product packaging, marketing communication and digital listings while complying with the revised labelling requirements.
