India is remaining resolute in its decision to ban makers of high-caffeine beverages from describing them as "energy drinks," rejecting efforts from beverage giants Pepsi, Red Bull and Monster to delay the regulatory intervention.
The country's food safety regulator (FSSAI) ordered manufacturers to stop using the term earlier this month, arguing that there were no Indian standards for such products and that claims around boosting the body, mind, or general weakness can be misleading.
It targeted companies such as Pepsi, Red Bull, Monster Beverage, billionaire Mukesh Ambani's Reliance and Hell Energy, who have retaliated, saying removing the category label could confuse consumers, damage brands built around instant-energy claims and disrupt a market built almost entirely around instant-energy messaging.
However, at a closed-door meeting with senior industry executives last Friday, FSSAI Chief Executive Rajit Punhani reportedly rejected these arguments, giving companies in India 90 days to change their labelling.
Energy drinks face a shifting landscape
The decision comes as the energy drink market is booming.
In India, the fast-growing market is expected to be worth $1.6bn by 2028. Companies such as Pepsi have seen huge success, with the launch of Sting in 2017 proving popular among 15- to 19-year-olds and in rural areas, helping make it a market leader.
However, attitudes towards highly caffeinated beverages are changing.
Energy drinks have raised health concerns among regulators worldwide due to their high levels of caffeine, sugar and taurine.
In the UK, high-caffeine energy drinks will be banned for individuals under 16 starting in April next year.
Additionally, some regions in Pakistan require these beverages to be labelled as "stimulant drinks."
The nutraceutical sector is seeing a rise in low-caffeine — or even no caffeine — beverages that instead rely on ingredients such as adaptogens and nootropics to deliver benefits.
Tighter rules on the horizon?
Enforcement of the ban has already begun in certain regions of India, resulting in the seizure of cans and bottles.
Major e-commerce platforms have also been instructed to stop promoting products as energy drinks.
While the category itself is not being banned, the terminology used to define and market these products is now facing increasing regulatory scrutiny, which may be extended to regulators in other countries.
