Regional Beverage Makers Capitalize on Health Trend with Sugar-Free Soda Variants
India's regional beverage manufacturers are increasingly focusing on health-oriented products, launching low- and no-sugar flavored soda variants to capture a growing segment of young, health-conscious consumers. This strategic shift represents a new growth lever beyond price competition, as these firms challenge established aerated beverage players in the mass market.
Lahori Zeera's Stevia-Based Innovation
Punjab-based Lahori Zeera plans to introduce a stevia-based version of its flagship drink by March, responding to rising demand for healthier alternatives. Co-founder and chief operating officer Nikhil Doda highlighted that the company's existing products, which combine sugar, salt, and lemon juice, are perceived as functional rather than 'junk' due to their electrolyte-like properties. The new sugar-free variant will be competitively priced at ₹10 for a 200ml bottle, matching the cost of its regular 160ml bottle, an aggressive move to attract new consumers.
House of Bindu's Sugar Reduction Strategy
In south India, Karnataka-based House of Bindu has significantly reduced sugar content in its products from 14-15% to 6-7%. Managing director Sathya Sankar noted the brand aims to cater to price-conscious yet health-aware consumers, particularly youngsters seeking low-sugar options. The company plans to launch coconut water with natural sugar and explore making its popular Bindu jeera drink sugar-free in the coming year, maintaining affordable pricing to pass value to consumers.
Industry Insights and Market Dynamics
Santosh Sreedhar, partner at Avalon Consulting, explained that sugar alternatives are more expensive than sugar, leading to typical premiums of 30-50% for sugar-free drinks. However, growing awareness of diabetes, obesity, and high BMI among India's approximately 100 million adults with diabetes is driving demand for sugar-free products across categories like juices and chocolates.
Aliasgar Hajoori, director at Gujarat-based Sosyo Hajoori, acknowledged that while sugar remains dominant in the broader beverage market, low- and no-sugar options are gaining traction. The company, partly acquired by Reliance Consumer Products, is planning low- to no-sugar variants next year, reflecting a broader industry trend.
Competitive Landscape and Growth Potential
Major players like Coca-Cola, Pepsi, and Reliance's Campa brand have also introduced sugar-free variants at competitive price points, such as ₹10 packs, to penetrate rural and semi-urban markets. Raj Gandhi of Varun Beverages reported that low- and no-sugar products accounted for about 45% of sales volumes in India as of September 2025, indicating rapid segment growth.
Ravi Jaipuria, chairman of Varun Beverages, emphasized the importance of affordability, noting that ₹10 pricing can accelerate market penetration beyond metros. With India's low per-capita beverage consumption, competition and sharper pricing are expected to expand the overall category rather than merely shifting market share between brands.
As sugar-free offerings gradually reach tier-2 and tier-3 towns, the category, though niche, is poised to become a significant health-led proposition, similar to high-fiber or low-fat products, in the evolving FMCG landscape.
