FSSAI Cracks Down On 'Energy Drink' Labels, Gives Companies 90 Days To Comply

India's food safety regulator has directed companies selling high-caffeine beverages to stop labelling them as "energy drinks," pushing back against industry attempts to delay the move in a market projected to touch $1.6 billion by 2028, according to Reuters.

The Food Safety and Standards Authority of India (FSSAI) said on social media in early July that it had sent notices to several companies, stating that no official Indian standard exists for such beverages. It added that claims suggesting a drink "vitalizes body and mind" or helps with "general weakness" were misleading. The regulator did not share further details publicly.

Behind closed doors, however, the instructions were far more direct. Confidential documents seen by Reuters show that FSSAI told companies including Pepsi, Red Bull, Monster Beverage, Reliance and Hell Energy to remove the term "energy drink," along with any similar wording, from their products.

Companies Push Back

The directive has set off tension between regulators and beverage makers, who worry that dropping the category label could hurt brands that have been built around promises of instant energy, potentially hitting sales.

At a closed-door meeting on Friday, FSSAI chief executive Rajit Punhani reportedly dismissed concerns raised by industry executives about the commercial fallout, telling them they were free to challenge the ruling in court if they wished. The industry eventually agreed to comply following that meeting, and FSSAI has given companies a 90-day window to make the change, the report added.

A Global Pattern Of Scrutiny

Energy drinks have drawn regulatory attention in several countries due to their high levels of caffeine, sugar and taurine, an amino acid. In England, high-caffeine energy drinks will be banned for those under 16 starting April next year. In parts of Pakistan, such beverages must already be labelled as "stimulant drinks" rather than energy drinks.

Much of the industry's marketing leans heavily on the idea of instant energy. Red Bull's globally recognised slogan, "Gives You Wings," is one example, while Pepsi's Indian advertisements for its Sting drink depict lightning coursing through the body to convey "electrifying energy."

The Indian Beverage Association, which represents major players in the sector, said it remains committed to following regulations and working with authorities on science-based policymaking.

However, in a confidential letter to FSSAI dated July 6, the association argued that publicly disclosing preliminary notices could harm company reputations, disrupt business operations and confuse consumers. It requested a more calibrated, risk-based method of enforcement instead.

The association also said that consulting stakeholders ahead of major regulatory shifts would make compliance smoother and reduce legal disputes, calling for a framework that is "predictable, consultative and transparent."

India's energy drinks segment took off after Pepsi introduced Sting in 2017. Priced at ₹20 for a plastic bottle, the drink found strong demand among teenagers aged 15 to 19 and in rural markets, helping it become the category leader, according to Euromonitor.

Retail sales in the segment are expected to grow annually by 12.6% and reach $1.6 billion by 2028, a pace faster than in the United States or China. Between 2018 and 2023, sales volumes nearly doubled every year, Euromonitor data shows.