The Indian cola industry is witnessing intense competition in the sugar-free segment, with Coca-Cola, PepsiCo, and Reliance Consumer’s Campa vying for dominance. To attract health-conscious consumers, Coca-Cola and PepsiCo have introduced affordable 200 ml packs of their diet and light drinks for just ₹10. These smaller, lower-priced bottles are gaining popularity without impacting the prices of their flagship products.
Diet and Light Drinks Expand Market Reach
Both Coca-Cola and PepsiCo have launched sugar-free variants like Thums Up X Force, Coke Zero, Sprite Zero, and Pepsi No-Sugar. Industry officials claim this is the first time diet and light drinks are available at such low prices in India. Experts suggest that companies are monitoring Campa’s expansion before adjusting their core product pricing strategies.
Growing Demand for Low-Sugar Beverages
Consumer preference for reduced-sugar drinks is rising. Sanjeev Agarwal, chairman of Coca-Cola’s major bottling partner MMG Group, noted that their sugar-free portfolio has expanded, with drinks priced between ₹10 and ₹30. Available in 250 ml and 500 ml bottles, these products provide consumers with more options.
Campa Challenges Market Leaders
Reliance’s Campa is making a strong entry with 200 ml sugar-free bottles at ₹10, beginning in Andhra Pradesh, a key cola market. In response, PepsiCo has introduced its own 200 ml sugar-free Pepsi at the same price.
Profitability Challenges and Market Growth
Despite the demand, ₹10 packs are not highly profitable, so companies are maintaining flagship drink prices while offering promotions and bundled deals. The sugar-free market has grown significantly, with sales doubling to ₹700-750 crore last year. According to Varun Beverages, PepsiCo’s low-sugar and sugar-free drinks now account for 44.4% of sales in India, up from 40.2% the previous year. Urban consumers, focusing more on health, are driving this trend, with Coca-Cola and PepsiCo leading the market since introducing Coke Zero and Pepsi Black in 2014 and 2017, respectively.
