The Food Safety and Standards Authority of India has asked manufacturers to stop using the term “energy drink” on labels, giving companies 90 days to comply despite industry concerns over the impact on sales and branding.
India’s Food Safety and Standards Authority of India (FSSAI) has directed manufacturers of high-caffeine beverages to stop using the term “energy drink” or similar descriptions on product labels, marking a significant regulatory move in one of the world’s fastest-growing beverage markets.
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The directive applies to major companies including PepsiCo, Red Bull, Monster Beverage, Reliance Consumer Products and Hell Energy, according to people familiar with the matter.
The regulator has reportedly given companies 90 days to implement the labelling changes.
FSSAI cites lack of regulatory standards
Earlier this month, the FSSAI announced that notices had been issued to companies marketing beverages as energy drinks.
According to the regulator, India currently has no specific food standards recognising products as “energy drinks.” It also said promotional claims suggesting such beverages “vitalize body and mind” or help overcome general weakness could mislead consumers.
The regulator has therefore instructed companies to remove the category description from product packaging.
Industry raises concerns
The decision has sparked opposition from beverage manufacturers, who argue that removing the “energy drink” label could weaken established brands and confuse consumers.
According to people familiar with the discussions, industry representatives raised concerns during a meeting with senior FSSAI officials, arguing that the change could affect marketing strategies and business operations.
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However, FSSAI officials reportedly maintained their position and indicated that companies could challenge the decision through legal channels if they disagreed.
Following the discussions, industry representatives are understood to have agreed to comply with the new requirements within the prescribed timeline.
Beverage association seeks consultations
The Indian Beverage Association, representing several leading beverage manufacturers, has said it remains committed to complying with applicable regulations while continuing constructive engagement with the regulator.
In a communication to the FSSAI, the association reportedly urged authorities to adopt a more consultative and science-based approach before implementing significant interpretational changes.
The industry body also expressed concern that public disclosure of preliminary regulatory notices could affect consumer confidence and business operations.
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Market has expanded rapidly
India’s energy beverage segment has witnessed rapid growth over the past several years.
Industry estimates suggest retail sales could reach approximately $1.6 billion by 2028, with annual growth expected to outpace several major international markets.
Affordable products such as PepsiCo’s Sting have contributed significantly to the expansion of the category, particularly among younger consumers and in smaller towns and rural markets.
Global concerns over high-caffeine drinks
The regulatory move comes amid increasing international scrutiny of beverages containing high levels of caffeine, sugar and taurine.
Several countries have introduced restrictions or additional regulations governing their sale and marketing, especially for children and adolescents.
Some jurisdictions have imposed age-related sales restrictions, while others require different product descriptions or warning labels to help consumers better understand the nature of these beverages.
Enforcement already underway
Authorities have already begun implementing the new policy in parts of the country.
According to official communications, Rajasthan has initiated enforcement measures involving products marketed as energy drinks and has instructed major e-commerce platforms to ensure beverages are not promoted using the prohibited description.
The latest directive represents one of the most significant regulatory interventions in India’s fast-growing functional beverage market and is expected to prompt widespread packaging and marketing changes across the industry.
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FAQ
Why has India banned the “energy drink” label?
The FSSAI says there are currently no approved Indian standards defining products as “energy drinks,” and certain promotional claims may mislead consumers.
Which companies are affected?
The directive applies to manufacturers including PepsiCo, Red Bull, Monster Beverage, Reliance Consumer Products and other companies selling high-caffeine beverages in India.
How long do companies have to comply?
Companies have reportedly been given 90 days to remove the “energy drink” description from product labels.
Are energy drinks banned in India?
No. The products themselves are not banned. The regulatory action relates to the labelling and marketing of beverages described as “energy drinks.”
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