In the beverage aisle of a D-Mart in Bengaluru’s Koramangala, Laxmi Misra, a 29-year-old software engineer, hesitates between two nearly identical cans. One says “Pepsi”. The other, “Pepsi–Zero Sugar”. Both cost Rs 40. Misra picks the one without sugar. Why not? It promises the same fizz without the health guilt.

What he doesn’t realise is that his tiny act of consumer rationality is also an act of corporate generosity—towards Pepsico’s margins. That can is “zero sugar”, yes, but what it actually contains is aspartame and acesulfame potassium, which are much cheaper alternative sweeteners.

Misra thinks he’s buying health; the company knows he’s buying profit.

And in 2025, that calculation stopped being niche and went mainstream. For years, sugar-free sodas were a premium indulgence, marketed to the fitness-conscious elite. The big break came this March, when Coca-Cola and Pepsico suddenly flooded the market with Rs 10 bottles of Coke Zero, Sprite Zero, Pepsi No-Sugar, and Thums Up X Force. The timing was no coincidence.

Reliance Consumer had just relaunched Campa Cola at that same price point. The nostalgic Indian brand was supposed to dent the incumbents. Instead, it created a mass-market moment for “zero”. In March 2025, it also rolled out a “diet” version… at Rs 10, of course.

Coca-Cola and Pepsico had no choice but to launch sugar-free beverages at Rs 10. That was the only way to compete on price and still make money

A food and beverage (F&B) analyst

It worked because the ground was already shifting. 2024 was the turning point: demand for no- and low-sugar drinks doubled to roughly Rs 750–770 crore ($85–87 million), moving from a sliver of the market to more than a tenth of it, according to data from the Indian Beverage Association (IBA). Then, the shift broke out in earnest. Cities like Mumbai, Delhi, and Bengaluru were already hooked, but now tier-2 cities are picking them up too. What was once “premium” is now slowly becoming what they drink with lunch.