Coca-Cola Targets India’s Next Beverage Battle with Zero-Caffeine Coke

Coca-Cola India is preparing to introduce its global Coke Zero Sugar Zero Caffeine brand in the country, marking its entry into the emerging zero-caffeine cola segment as competition intensifies in the fast-growing low- and no-sugar beverage market.

According to people familiar with the development, the company plans to manufacture the product locally and launch it in India later this year. The move comes as health-conscious consumers increasingly scrutinize product labels and seek beverages with reduced sugar and caffeine content.

If launched, Coke Zero Sugar Zero Caffeine would become the first major cola in India to combine both zero sugar and zero caffeine. Currently, all leading cola brands sold in the country—including Coca-Cola, Coke Zero, Diet Coke and Pepsi—contain caffeine.

The product is already being rolled out in several European markets. Coca-Cola India declined to comment on the development.

Industry experts believe the zero-caffeine category could become the next major battleground in India’s carbonated beverages market. “Zero-caffeine could be the next frontier in the diet and light beverages segment. At least two other beverage companies have approached us to develop locally relevant formulations,” said an executive at a leading research firm, requesting anonymity.

The executive added that growing consumer attention to ingredient labels, coupled with increased regulatory scrutiny, could provide an early-mover advantage to brands that successfully deliver a zero-caffeine cola without compromising on taste.

The launch comes amid rapid growth in India’s healthier beverage segment. Industry data indicate that zero- and low-sugar drinks now account for 30–35% of the soft drinks market, up sharply from around 5% in 2020, reflecting changing consumer preferences.

Several beverage companies have stepped up their presence in the category over the past year. Reliance Consumer Products has expanded its Campa portfolio, while Lahori Zeera recently introduced its first sugar-free variant. Other companies, including Raw Pressery, ITC and Veeba Foods-backed Zyro, have also launched zero-sugar cola offerings.

The planned launch also follows supply disruptions caused by an aluminium can shortage after the West Asia conflict, which temporarily affected the availability of canned beverages such as Diet Coke in India.

Meanwhile, PepsiCo’s bottling partner Varun Beverages Ltd. (VBL) recently reported that no-sugar and reduced-sugar beverages—including Pepsi Black, Sting, 7UP Zero Sugar, Tropicana no-sugar variants, Evervess Soda and Aquafina—now contribute nearly 60% of its total beverage volumes, underscoring the industry’s shift toward healthier product portfolios.

According to Euromonitor, India’s soft drinks market is projected to grow from nearly US$15.4 billion in 2026 to US$22.4 billion by 2033, driven by low per-capita consumption, affordable pricing and increasing competition from established and emerging beverage brands.