India’s drink choices are changing in no time. Forget the days when people just want tasty drinks— the scenarios have changed; they want something healthy, light, and good for their body. That’s why plant-based and low-sugar drinks are becoming the new favorite for the masses. 

From almond milk to coconut water with no added sugar, more and more brands are creating drinks that match what today’s health-conscious people want. Whether it’s someone going to the gym, someone with diabetes, or someone just trying to cut back on sugar, everyone is looking for better drink formulation options.

And it’s not just about health. People also care about the ingredients used, their origin, and how the drink affects them. So, drinks made with natural ingredients like oats, herbs, and fruits are now seen on store shelves across big cities. Drink lovers are now saying yes to clean, simple, and plant-powered drinks—and no to extra sugar and artificial stuff.

If you’re thinking about starting a new drink brand or changing your product, now is the perfect time. Go for plant-based and low-sugar drinks because this is more than a trend—it’s the future of how India drinks.

 

Market Overview: Robust Growth Trajectories

Plant-Based Beverage Formulation

• Market Size & Growth: The Indian plant-based beverages market is forecast to reach an impressive USD 397.68 billion by 2032, growing at a CAGR of 14.93% from 2025 to 2032. In 2024, the market reached USD 167.32 billion, underscoring the rapid pace of expansion.
• Global Context: India leads the world in plant-based beverage consumption, thanks to its large vegetarian population, a deep-rooted tradition of plant-based diets, and a growing appetite for healthier alternatives. 

Plant-based beverage formulation can be the best idea for you to work on a successful project and start your beverage company. 

 

Low-Sugar and Sugar-Free Beverages

• Market Dynamics: The Indian non-alcoholic beverage sector is expected to grow at a CAGR of 6.72% between 2024 and 2028, reaching a market size of USD 21.49 billion. The zero-sugar beverage market, in particular, is experiencing double-digit growth, reflecting rising health awareness and concerns over sugar-related health issues. 
• Natural Sweeteners: The market for natural sweeteners for zero-calorie beverage formulation  (stevia, monk fruit, jaggery) is also expanding rapidly, projected to reach USD 1.94 billion by 2033 at a CAGR of 7.87%. 

Seeing the current statistics of the low-sugar beverage formulation concept, this can also be a suitable idea for your beverage startups. Grab the opportunity now. Contact the best beverage formulation consultant in India. 

 

Why Plant-Based Beverages Are Booming

India has a rich tradition of plant-based living. From turmeric milk to almond-based sweets, we’ve always had a plant-forward food culture. However, plant-based beverages in India have now taken a modern turn.

Key Drivers:

• Lactose intolerance and dairy avoidance among millennials and Gen Z.
• Rise in veganism and flexitarian lifestyles.
• Concerns over animal cruelty and environmental impact.
• Interest in functional plant ingredients like matcha, moringa, ashwagandha, almond, oat, and coconut.

Popular Formats:

• Oat, soy, almond, and coconut milk-based drinks
• Plant protein shakes and smoothies
• Herbal teas and infused waters
• RTD (Ready-to-Drink) vegan beverages

 

The Low-Sugar Revolution

India is the diabetes capital of the world, with over 77 million diabetics. The pressure to reduce sugar in foods and drinks has led both startups and legacy brands to innovate rapidly.

Top Sugar-Reduction Strategies:

• Natural sweeteners like stevia, monk fruit, and erythritol.
• Use of fruit extracts like date syrup or apple concentrate.
• Reformulating recipes with flavor enhancers and plant fibers.
• No-added-sugar formulations claim paired with better taste profiles.

FSSAI is also pushing brands to adopt front-of-pack labeling, driving brands to cut down sugar content transparently.

 

R&D and Beverage Formulation Trends in 2025

Formulators in India are now focused on:

• Hybrid formulations (e.g., protein + adaptogen + low sugar).
• Use of cold-pressed juice bases with no preservatives.
• Innovations like plant-based probiotic beverages, nut milk coffees, and RTD ayurvedic tonics.
• Smart packaging to maintain shelf life without compromising clean-label claims.
  

India’s tropical fruits, herbs, and spices offer a unique advantage. Food Formulators are experimenting with amla, kokum, tulsi, bael, and moringa to create drinks that are both healthy and culturally relevant.  The top beverage industry trend for 2025 can help you know more about the current audience synergies and make the best decision for your beverage brand. 

 

 

Manufacturing & Scalability

With the rise in demand, several beverage contract manufacturers in India have upgraded their capabilities to handle:

• Cold-chain logistics for fresh plant-based beverages.
• Small-batch, custom formulation for startups.
• Compliance with FSSAI, USFDA, and export-ready certifications.

The barrier to entry is lower than ever, especially with government initiatives supporting food and beverage innovation under the Startup India Mission.

 

 

Market Opportunity & Investment Insights

The plant-based beverage market in India is projected to reach INR 10,000 crore by 2027, while low- and no-sugar drink segments are expected to grow at a CAGR of 17% over the next 5 years.

Know more about the startup story and create your success story with us now. 

Startups like RAW Pressery, Goodmylk, Epigamia, and Nourish You are already making waves in this space. Global giants like Nestlé, Coca-Cola, and PepsiCo are also testing plant-based variants and sugar-free options in the Indian market.

 

Challenges to Watch

• Shelf-life stability of natural ingredients without preservatives.
• Taste and texture—plant-based and low-sugar drinks must still taste good.
• Consumer education—breaking myths around “sugar-free” and “plant-based.”
• Pricing—premium ingredients often result in higher MRPs.

These challenges are real, but not insurmountable with good R&D support, regulatory guidance, and branding. 

Don’t worry about the challenges when you have us as your recipe formulation partner. 

 

Outlook for 2025 and Beyond

The future of plant-based and low-sugar drinks in India is bright and dynamic. With double-digit growth rates, rapid product innovation, and a strong push from both consumers and policymakers, these segments are poised to redefine the Indian beverage industry.

Key Takeaways:

• India is set to remain a global leader in the plant-based beverage market, with growth driven by health-focused urban consumers, technological innovation, and supportive government policies.
• Low-sugar and sugar-free drinks will continue to gain traction, propelled by health awareness, advancements in sweetener technology, and strategic marketing. 
• Brands that can balance taste, affordability, and health benefits will capture the next wave of growth in this evolving market. The future of plant-based and low-sugar drink formulation is at its peak; take advantage now. 

 

Talk to India’s Leading Beverage Formulation Experts at Foodsure Today!

As 2025 approaches, consumers are demanding more than just flavor—they’re seeking clean, functional, and culturally relevant drinks. Brands that don’t adapt risk being left behind.

Now is the time to act.
Whether you’re building a new beverage line or reformulating an old one, Foodsure helps you stay ahead. From cutting-edge R&D to FSSAI compliance, from natural sweetener strategy to shelf-stable plant-based innovation—we bring your drink idea to life with science, speed, and success.

Let’s make your 2025 beverage market-ready today.

Book a consultation with Foodsure’s beverage formulation experts now.