India orders energy drink manufacturers to drop ‘Energy Drink’ label amid tougher FSSAI regulations

INDIA – India has ordered manufacturers of high-caffeine beverages marketed as “energy drinks” to stop using the description, marking a significant regulatory shift in one of the world’s fastest-growing beverage markets.  

The move by the Food Safety and Standards Authority of India (FSSAI) affects major brands, including Pepsi, Red Bull, Monster Beverage, Reliance and Hell Energy, as authorities tighten oversight of product labelling and health claims. 

Earlier this month, the FSSAI announced that it had issued notices to beverage companies, stating that India has no official standards for products marketed as “energy drinks.” The regulator also said claims suggesting that such beverages “vitalizes body and mind” or can “aid in general weakness” are misleading. 

According to people familiar with the matter, the regulator privately instructed manufacturers to remove the term “energy drink” and any similar description from product packaging. The directive has prompted concern among manufacturers, who argue that the category label is central to their branding and consumer recognition. 

During a closed-door meeting with senior industry executives, FSSAI Chief Executive Rajit Punhani rejected industry requests to delay or reconsider the decision. According to sources familiar with the discussions, Punhani told companies they were free to challenge the regulator’s decision in court if they disagreed with the directive. 

Following the meeting, an Indian government source said the industry agreed to comply with the labelling changes. Companies have been given 90 days by the FSSAI to implement the new requirements. 

The Indian Beverage Association, which represents leading beverage manufacturers, said it remains committed to complying with regulations while continuing to engage with authorities on science-based policymaking. 

In a confidential letter dated July 6, the association warned that making preliminary enforcement notices public could damage company reputations, disrupt business operations and confuse consumers.  

It urged the regulator to adopt a “risk-based enforcement approach” and stated that “regular stakeholder consultations before implementing significant interpretational changes would facilitate smoother compliance, reduce litigation.”  

The association added that a “predictable, consultative and transparent” regulatory framework remains essential. 

The regulatory action comes as India’s energy beverage market continues to expand rapidly. According to Euromonitor, retail sales are projected to reach US$1.6 billion by 2028, growing at an annual rate of 12.6%. Market growth accelerated after Pepsi launched Sting in 2017, with affordable pricing helping the brand gain popularity among younger consumers and rural markets. 

Enforcement has already begun across the country. Authorities in Rajasthan have seized thousands of bottles of Sting, Campa Energy and Red Bull during compliance inspections.  

The state has also instructed major e-commerce platforms, including Amazon, Flipkart, Blinkit and Swiggy Instamart, to ensure products are no longer promoted as “energy drinks.” 

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