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Beyond Caffeine And Sugar: Inside the Next Wave of "Functional" Energy Drinks in India

Updated on: 05 December, 2025 07:39 PM IST | Mumbai

Bespoke Stories Studio | bespokestories@mid-day.com

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India’s beverage landscape is undergoing a quiet but powerful transformation. For years, supermarket shelves were dominated by sugary sodas and caffeine-heavy stimulants that promised an instant rush but delivered little more than empty calories and an inevitable crash. Today, that model is being challenged by a generation of young consumers who refuse to compromise between taste and health. Gen Z and millennials, who now form the largest consumer cohort in the country are demanding beverages that don’t just taste refreshing but genuinely support their physical and mental well-being. This shift has given rise to one of the fastest-growing categories in the food and drink sector: functional energy drinks.

According to Mintel, nearly half of Indian consumers now actively seek multifunctional benefits in the food and beverages they consume, with energy, immunity, focus and stress relief ranking at the top. The change indicates a deeper cultural shift: India is moving from “quick fix” beverages to intentional consumption. The modern buyer is reading labels, questioning ingredients, and choosing brands that align with a holistic lifestyle. Globally too, the energy drink sector is evolving. Markets in the US and Europe have seen the rise of beverages infused with nootropics, botanical extracts and adaptogens - ingredients that enhance cognition, reduce stress or support metabolic health. India is not only catching up but localizing this trend through its rich heritage of Ayurveda and plant-based nutrition.

At the center of this shift is Delulu™, a Mumbai-based functional F&B startup founded by Nidhi Saxena, a 3X entrepreneur. With more than two decades of experience in healthcare, technology and global transformation roles, she has built Delulu™, on a simple but powerful thesis: food is the first pharmacy, and culture is the carrier. For wellness to work for young Indians, she argues, it must be fun, portable, honest - and above all, deeply functional.

It is no coincidence that Gen Z sits at the forefront of India’s functional beverage revolution. This generation has grown up in the age of wellness influencers, fitness apps, clean-label consciousness and mental health awareness. They understand caffeine’s benefits but are equally aware of the value of Ashwagandha for calm, L-theanine for balanced focus or L-carnitine for metabolism. They are unimpressed by beverages that merely provide a burst of energy; they want drinks that help them think more clearly, feel less stressed, perform better at work or in exams, recover post-workout, or sustain long hours of study or gaming without damaging their long-term health. Importantly, they want all of this without compromising on taste. For decades, Indian consumers faced an uncomfortable trade-off between beverages that “taste good but do nothing” and those that “work but taste like punishment.” Today’s youth want a drink that wears both crowns - flavor and function - with equal confidence.

Functional energy drinks stand apart because they are designed with intention. Instead of relying solely on caffeine and sugar, these beverages integrate adaptogens that help the body manage stress, thermogenic ingredients that naturally support metabolism, nootropics that enhance focus and cognitive performance, and essential vitamins and antioxidants that nourish and restore. Ashwagandha, L-theanine, tyrosine, green tea extract and tulsi are increasingly replacing artificial chemicals and excessive sugars. Unlike traditional energy drinks, which often contain up to 20–30% sugar by volume, functional drinks embrace clean-label formulations: zero refined sugar, zero empty calories and no artificial additives. Natural sweeteners, real fruit extracts and carefully designed flavor profiles ensure that functionality does not come at the cost of enjoyment.

The “no sugar, no crash” expectation has become non-negotiable for today’s health-conscious buyer. The new wave of functional beverages delivers smooth, long-lasting energy without the jittery spikes and sudden drops once associated with stimulants. Flavor innovation - from tropical citrus blends to desi notes like raw mango, guava or jamun - has redefined what healthy beverages can taste like. Wellness is finally being served with joy, not discipline.

Within this evolving landscape, Delulu™ is fast emerging as one of the most distinctive and culturally resonant players. Nidhi and her team spent months listening to students, creators, gamers and night workers to decode what they truly wanted in their next-generation energy drink - the flavors they gravitate toward, the packaging they instinctively reach for, the daily moments when they seek energy or calm, and even the type of content that influences trial. This consumer-first philosophy lies at the heart of Delulu™’s identity.

Delulu’s flagship offerings - Delulu Activate™ and Delulu Manifest™ - exemplify how India is redefining the energy drink category. Delulu Activate™, positioned as India’s first thermogenic energy drink, delivers clean energy while supporting metabolism and calorie burn. It combines Ashwagandha for stress balance, natural caffeine for sustained energy, L-carnitine and capsicum extract for metabolic support, and essential vitamins for overall vitality - all with zero sugar and zero calories. The result is a beverage that helps the consumer feel alert and focused, while also aligning with fitness and weight-management goals.

On the other hand, Delulu Manifest™, India’s first adaptogenic energy drink, is crafted for moments that require calm focus, emotional balance or creative flow. Its formulation blends tulsi for relaxation, L-theanine and tyrosine for cognitive clarity, and green tea extract for a gentle lift. It is ideal for late-night study sessions, gaming marathons, intense workdays or emotionally demanding moments when the mind needs stability as much as the body needs energy. Like Delulu Activate™, Delulu Manifest™ is entirely sugar-free, calorie-free and free from artificial additives.

What sets Delulu™ apart is not just its formulations but its philosophy. It does not see energy as a narrow function but as a holistic state of being - a blend of physical stamina, mental clarity and emotional equilibrium. Delulu™’s world is one where science meets storytelling, where Ayurvedic herbs meet pop culture, and where better nutrition is designed not as a chore but as a celebration.

Delulu™ is also one of the few Indian brands building a full-stack functional nutrition ecosystem rather than a stand-alone drink. The company is developing 50ml wellness shots targeted at youthfulness, hormonal balance, gut health, stress relief and immunity; protein-rich snacks such as Delulu SituationChips™ and Delulu Pookie Puffs™; high-protein bars infused with Ashwagandha, Shatavari and phytonutrients; and upcoming hydration fizzlets and probiotic sodas. This multi-format strategy positions Delulu™ as a one-stop destination for functional foods - designed for a generation that prefers to sip, snack and scroll rather than swallow pills or follow restrictive diets.

The broader functional beverage market in India is only beginning to unfold. Industry projections indicate exponential growth over the next decade, driven by rising health awareness, increasing disposable incomes, and a cultural shift toward preventive wellness. Large beverage companies will eventually have to adapt or risk losing relevance. But at this moment, the category is being defined by agile, science-driven, culturally fluent startups like Delulu™ - brands that understand not just the biology of nutrition but the psychology of young consumers.

As Saxena puts it, “Young Indians want products that are effective, honest and culturally relevant. They don’t want to choose between taste and health. They should never have had to.”