The India unit of Coca-Cola is working to introduce Coke Zero-Sugar Zero-Caffeine – the beverage maker’s global brand – to Indian shelves in this year with local manufacturing, people in direct knowledge of the development said.
Also read: PepsiCo bets on zero-sugar drinks, digital push to drive India growth
Currently in India, all colas including Diet Coke, Coke Zero, Pepsi and Coke contain caffeine.
The product is in process of being rolled out in various European markets as well.
Coca-Cola India declined to comment on the development.
“Zero-caffeine could be the next battleground in the diets and lights category. At least two more beverage makers have approached us for details on locally relevant formulations,” an executive from a large research firm said. Requesting anonymity citing confidentiality clauses, the executive added: “At a time when labelling of ingredients on packs has gained even more prominence among consumers, as well as scrutiny from regulators, zero-caffeine could give any player a first-mover advantage, if the taste is maintained.”The World Health Organisation (WHO) has noted in various reports that excess caffeine in foods and drinks could cause side effects such as trouble in sleeping, anxiety and faster heart rate.
Total sales of zero- and low-sugar drinks now contribute 30-35% to the soft drinks market, compared to 5% in 2020, internal data from companies show.
Last week, challenger brand Lahori Zeera introduced its first sugarfree variant. Recent months have seen Reliance Consumer Products’ Campa, Raw Pressery, ITC and Veeba Foods-backed Zyro introducing zero-sugar colas, to compete for share in the no-sugar, low- sugar category.
The development comes on the back of acute shortage of aluminium cans that had riled makers of soft drinks and beer soon after the West Asia war, leading to Coca-Cola’s mainstay brand Diet Coke disappearing from shelves. The shortage had also resulted in importers of soft drinks flooding quick commerce platforms with cans at prices almost five times the price of locally made variants.
Also read: The real reason why Coca-Cola wants to become more Coca-Cola
PepsiCo’s sales of no-sugar and mid-sugar drinks, which include energy drink Sting, Pepsi Black, 7 Up Zero Sugar, Tropicana no-sugar variants, Evervess Soda and Aquafina water is near 60% of total volumes, the company’s bottling partner Varun Beverages Ltd (VBL) noted in its March ’26 quarter earnings.
Research firm Euromonitor said in a report that India’s soft drinks market is expanding rapidly, with the carbonated soft drinks sector estimated to scale from close to US $ 15.4 billion in 2026 to US $ 22.4 billion by 2033. The report cited low per capita consumption leading to massive headroom for growth, affordable pricing, and heightened competition from newer entrants.