India’s food safety regulator is set to reject requests from major beverage companies seeking a one-year extension to comply with a directive requiring high-caffeine drinks to remove “energy drink” labels from their packaging.
A government source said the Food Safety and Standards Authority of India (FSSAI) will maintain its existing 90-day compliance timeline, a decision expected to disrupt operations for some of the world’s largest beverage companies, including PepsiCo, Red Bull, Monster Beverage, and Reliance Consumer Products owned by billionaire Mukesh Ambani.
The dispute centres on the regulator’s position that India has no official standards defining “energy drinks” and that the use of the term on high-caffeine beverages violates existing food labelling rules.
The FSSAI privately informed companies in July that they must remove “energy drink” and similar descriptions from affected products within 90 days, according to previous reporting by Reuters.
Companies Seek More Time Over Inventory Concerns
The beverage companies have argued that the deadline is too short, citing millions of cans and bottles already in circulation as well as pending imports of packaging materials.
Three industry sources said companies are requesting at least one year to complete the transition, warning that changing labels, managing existing inventory, and coordinating supply chains across India would require significantly more time.
However, the government source said the regulator is unlikely to grant the extension because several Indian states have indicated that existing stocks can be cleared within 60 to 90 days.
“The companies have breached regulations by labelling them energy drinks, they should be happy (India) is not prosecuting them,” the government official said.
The official also criticised companies for failing to provide detailed inventory information.
“They have not told FSSAI how much inventory is lying in which state, which they are supposed to track to ensure traceability,” the official added.
Industry representatives responded that tracking millions of units distributed across India’s vast retail network is a complex process.
FSSAI, Red Bull, Monster, and Reliance Consumer Products did not respond to Reuters requests for comment, while PepsiCo declined to comment.
Growing Market Faces Regulatory Pressure
The regulatory action comes as India’s energy drink market experiences rapid expansion.
According to Euromonitor estimates, retail sales of energy drinks in India are growing at an annual rate of 12.6%, faster than markets such as the United States and China.
The sector expanded sharply between 2018 and 2023, with retail sales increasing by nearly 100% annually during that period. Last year, sales reached approximately 907 million litres, equivalent to more than 3 billion bottles or cans.
The market’s growth has been driven partly by affordable products targeted at younger consumers and customers in smaller towns and rural areas.
PepsiCo’s Sting, launched in India in 2017, played a major role in accelerating consumption. Its low-priced 20-rupee plastic bottles became especially popular among teenagers aged 15 to 19 and consumers in rural communities, according to Euromonitor.
State Seizures Add to Industry Concerns
The labelling dispute has been intensified by enforcement actions from some Indian states, where authorities have begun seizing products during inspections.
Industry sources said beverage companies are also urging the government to intervene and stop seizures of energy drinks while discussions over compliance continue.
In Rajasthan, authorities last month seized thousands of units of Pepsi’s Sting, Reliance’s Campa Energy, and Red Bull as part of a regulatory enforcement campaign.
Officials in the federally administered territory of Ladakh also confirmed that similar actions were underway.
“Seizure action is an explicit part of the district-level inspection drive already underway,” the Ladakh food safety office said, adding that beverages at retailers and distributors were being checked for compliance with labelling requirements.
Health Concerns Drive Global Scrutiny
The dispute comes amid wider international concerns over high-caffeine beverages, particularly regarding their caffeine, sugar, and taurine content.
Regulators in several countries have examined potential health risks linked to energy drinks, especially among younger consumers.
In England, energy drinks containing high levels of caffeine are scheduled to be banned for people under 16 from April next year.
Indian authorities have similarly increased scrutiny of how such products are marketed and labelled, particularly because of their popularity among younger consumers.
Industry Appeals for Government Support
Executives from PepsiCo, Red Bull, and Monster met with India’s Food Processing Minister Chirag Paswan on Tuesday to raise concerns about the labelling requirements and seek government support, according to industry sources.
Paswan later said the ministry remained committed to supporting the sector.
“The ministry is committed to promote investment, innovation, and job creation,” he wrote on X, without providing further details.
For beverage companies, the challenge now is balancing regulatory compliance with the financial impact of redesigning packaging, clearing existing inventory, and adapting to India’s rapidly expanding but increasingly regulated energy drink market.