What Exactly Is Changing?
The Food Safety and Standards Authority of India (FSSAI) has directed major beverage manufacturers to stop using the term “energy drink” on their product labels and in marketing. According to the regulator, India's food laws do not have a specific, recognised
standard or category for products called “energy drinks.” Therefore, using the term is considered potentially misleading to consumers. Brands like Red Bull, Monster, and PepsiCo's Sting have been given a 90-day window to comply with the directive. The products themselves are not being banned; the core of the issue is about labelling accuracy. Instead of "energy drink," these products will now fall under the existing category of “caffeinated beverages.”
The Health Concerns Driving the Change
This regulatory shift is rooted in growing global and domestic health concerns surrounding high-caffeine beverages, particularly their consumption by young people. Health experts have raised alarms about the potential risks of excessive intake of drinks loaded with caffeine, sugar, and other stimulants like taurine. Side effects can include anxiety, palpitations, insomnia, and dehydration. FSSAI’s move is aimed at preventing consumers from being misled by promotional claims like “vitalises body and mind” or “helps in general weakness,” which suggest unproven therapeutic benefits. The regulator's action is part of a broader push for consumer safety and transparency, ensuring that what's claimed on the can is scientifically sound and legally permissible.
Decoding the New Caffeinated Beverage Labels
For consumers, this means the labels on their favourite high-caffeine drinks will soon look different. The term “energy drink” will be gone, replaced by “caffeinated beverage.” FSSAI has already established clear rules for this category. Products must contain between 145 and 300 milligrams of caffeine per litre. More importantly, the new labels must include mandatory warnings. These include a declaration of “High caffeine” content and a clear statement that the beverage is “Not recommended for children, pregnant and lactating women, persons sensitive to caffeine.” Furthermore, labels will advise against consuming more than 500ml per day, providing a clear guideline for safe consumption.
Impact on the Beverage Industry
The directive has sent ripples through India's booming high-caffeine beverage market, which is projected to be worth $1.6 billion by 2028. Companies like PepsiCo, Red Bull, and Reliance have expressed concerns that removing the well-known “energy drink” descriptor could damage brand recognition, confuse consumers, and disrupt business operations. The Indian Beverage Association (IBA) has called for a more collaborative approach, arguing that such significant changes should involve industry consultation to avoid market disruption. Despite the pushback, the FSSAI has held firm, telling companies they must comply or challenge the order in court. After discussions, major players have reportedly agreed to make the required changes within the 90-day timeframe.
A Global Trend Comes to India
India's move is not happening in a vacuum. It aligns with a growing international trend of regulators taking a closer look at the marketing and sale of high-caffeine drinks. For instance, England is set to ban the sale of these beverages to individuals under 16, while some regions in Pakistan have mandated they be called “stimulant drinks” instead. These global actions reflect a collective concern about the health impacts of products that are aggressively marketed toward young people with promises of enhanced performance and alertness. By focusing on transparent labelling, the FSSAI is positioning India alongside other nations prioritising public health and consumer awareness over marketing claims.
