FSSAI directs Pepsi, Red Bull, Monster to remove 'energy drink' tag

India’s food safety regulator has ordered leading beverage manufacturers to remove the term "energy drink" from high-caffeine beverages, sparking opposition from major players such as Pepsi, Red Bull, Monster Beverage, Reliance, and Hell Energy, according to a Reuters report. The Food Safety and Standards Authority of India (FSSAI) this month instructed companies to eliminate not only the phrase “energy drink” but also similar promotional claims from product packaging and labeling, citing the lack of prescribed standards for such products in India.

The FSSAI’s directive stems from concerns that claims like "vitalises body and mind" or "helps in general weakness" could mislead consumers about the benefits of these products. The regulator maintains that there is no official category or standards for "energy drinks" under current Indian food safety law, and that regulating the labelling is necessary to prevent consumer confusion. During a meeting with industry representatives on Friday, FSSAI Chief Executive Rajit Punhani reportedly stated that businesses should not expect adverse effects from the order, but left the door open for legal challenges if companies wished to contest it.

Despite initial pushback, the beverage companies in question have since agreed to comply with the directive. According to a government source, manufacturers now have 90 days to revise their product labels to remove the banned terminology and associated claims.

The directive follows rapid growth in the energy drinks segment in India. After Pepsi introduced its Sting brand in 2017, the market for high-caffeine beverages saw exponential growth, particularly among teenagers and young adults, as well as in smaller cities and rural areas. According to industry tracker Euromonitor, India’s energy drinks market is projected to reach $1.6 billion by 2028, growing at an annual rate of 12.6%. The report also notes that sales volumes have nearly doubled each year between 2018 and 2023.

Responding to the regulator’s announcement, the Indian Beverage Association (IBA), which represents several major beverage companies, called for a more collaborative approach when rolling out major policy changes. In a letter to the FSSAI dated 6 July, the IBA argued that issuing regulatory orders without consulting the industry risks harming corporate reputations, disrupting operations, and confusing consumers. The association urged the regulator to engage regularly with industry stakeholders ahead of implementing significant changes, while also reaffirming its commitment to compliance and evidence-based policymaking.

Regulatory enforcement has already begun in Rajasthan, where authorities recently seized thousands of bottles of popular drinks such as Sting, Campa Energy, and Red Bull in a crackdown on products marketed as energy drinks. On 8 July, the Rajasthan government further instructed major e-commerce platforms including Amazon, Flipkart, Blinkit, and Swiggy Instamart to ensure these products are not advertised as "energy drinks".

As India’s energy beverage market continues its rapid ascent, the regulatory stance is poised to reshape how companies market and sell their products, raising questions about future business strategies in this fast-growing segment.