FSSAI orders firms to drop ‘energy drink’ labels within 90 days

New Delhi: India’s energy drink market has suddenly lost some fizz. The country’s food safety regulator has directed beverage manufacturers to stop using the term “energy drink” on product labels, setting the stage for one of the biggest labelling overhauls the sector has seen in recent years.

The Food Safety and Standards Authority of India (FSSAI) has asked manufacturers of high-caffeine beverages to remove the phrase “energy drink” and similar descriptions from product packaging and labels. The move affects major players including PepsiCo, Red Bull, Monster Beverage, Reliance Consumer Products and HELL ENERGY.

Earlier this month, the regulator said India currently has no notified product standard for beverages marketed as “energy drinks”. It also questioned promotional claims such as “vitalises body and mind” and “helps in general weakness”, arguing that such statements could mislead consumers if they are not adequately supported.

The directive requires companies to remove the term from labels and packaging, signalling a stricter interpretation of India’s food labelling rules.

The issue came to a head during a meeting between FSSAI officials and beverage companies on Friday.

According to Reuters, FSSAI chief executive Rajit Punhani told industry representatives that concerns over the commercial impact of the order were not sufficient grounds to delay implementation. He also reportedly said companies that disagreed with the regulator’s interpretation were free to challenge the decision in court.

Following the discussions, a government source told Reuters that companies agreed to comply with the directive and have been given 90 days to update their product labels.

The decision is expected to trigger widespread packaging changes across India’s rapidly growing energy beverage market.

While agreeing to comply, the industry has called for closer engagement with regulators on future policy changes.

In a letter dated July 6, the Indian Beverage Association (IBA), which represents several leading beverage manufacturers, urged FSSAI to adopt a more collaborative approach when introducing regulatory measures.

The association argued that publicly issuing regulatory notices without prior consultation could damage company reputations, disrupt business operations and create unnecessary confusion among consumers. It also recommended establishing regular dialogue between regulators and industry before implementing significant policy changes.

The IBA reiterated that its members remain committed to complying with government regulations and supporting the development of science-based food policies.

India’s energy beverage market has expanded rapidly over the past decade, particularly after PepsiCo introduced its Sting brand in 2017. The low-priced drink quickly gained popularity among teenagers, young adults and consumers in smaller towns and rural markets.

According to Euromonitor International, India’s energy drinks market is expected to reach $1.6 billion by 2028, growing at an annual rate of 12.6 per cent. The research firm also estimates that sales volumes nearly doubled each year between 2018 and 2023.

Much of that growth has been driven by consumer perceptions that these beverages improve alertness and provide an energy boost throughout the day. Some consumers have also reported becoming regular users of such products.

The regulator’s directive is already being enforced at the state level.

Authorities in Rajasthan have seized thousands of bottles of Sting, Campa Energy and Red Bull during inspections targeting products marketed as energy drinks.

On July 8, the Rajasthan government also directed major e-commerce platforms, including Amazon, Flipkart, Blinkit and Swiggy through its Instamart platform, to ensure that beverages are not advertised or promoted as “energy drinks”.

With a 90-day compliance window now in place, beverage companies are preparing to redesign labels while the broader debate over product naming and health claims continues. The outcome is likely to influence not only how these drinks are marketed, but also how food labelling regulations are interpreted across India’s wider packaged food industry.