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Reinventing soda: Zero sugar, functional benefits, and new indulgence

Zero-sugar, functional, and indulgent sodas are redefining what a carbonated soft drink can offer in today’s evolving market.

The biggest changes in the current carbonated soft drinks (CSD) category revolve around sugar-free beverages, functional and better-for-you (BFY) brands, and evolving purchasing drivers.

At a glance:

• Zero-sugar and functional sodas are driving major change in the global carbonated soft drink category.
• Prebiotics, protein and relaxation claims are fuelling new product development as brands move beyond refreshment.
• Indulgent full-sugar sodas are finding new fans, suggesting enjoyment and wellness can coexist in the market.

“On one hand, this is the story of zero sugar taking over the category, particularly in Western Europe and North America,” Howard Telford, global insights manager of soft drinks at Euromonitor International, told Ingredients Network.

Per capita consumption of regular, sugar-sweetened CSDs in the UK has fallen by around 15% between 2015 and 2025, while reduced-sugar and zero-sugar CSDs have risen by about 35%. In the US, diet carbonates grew roughly 12% in 2025, while full-calorie cola fell by 8%.

“On the other hand, North America has essentially invented a new segment in five years, ‘modern soda’ being Walmart's own term for the functional and BFY [better-for-your] brands,” said Telford.

Poppi, Olipop, and Culture Pop are among the brands that have carved out a premium niche. Olipop has been a top performer in the US market over the last three years, while PepsiCo paid $1.95 billion (€1.7 bn) for Poppi.

Price has changed substantially, with category-level pricing climbing sharply over the past five years. “Big manufacturers have leaned much harder on impulse and immediate consumption rather than future consumption, downsizing multipacks, and popularising smaller formats such as the 250ml sleek can,” said Telford.

In France, for example, carbonate volumes fell for a third consecutive year in 2025, while unit prices continued to rise and shoppers deliberately shifted to smaller cans.

Moving beyond traditional refreshment

Today’s CSD manufacturers are formulating for consumer demands that go beyond hydration, extending to functional and BFY benefits.

Prebiotic claims in sparkling drinks rose 115% in 2025 and have moved outside of the US, with launches now in France, Germany, the UK and Brazil. Globally, digestive health claims are forecast to grow at a 34% compound annual growth rate (CAGR) to 2029, making them the fastest-growing functional claim in soft drinks.

Protein is the other axis: global retail sales of high-protein products surpassed $3 trillion (€2.6 tn) in 2025, with more than 137,000 high-protein SKUs. Demand is forecast to grow another 11% through 2029. In beverages, that is showing up as “clear" protein in the US.

Highly caffeinated performance energy and high-electrolyte powders have vastly outperformed traditional CSD. “US powder concentrates have been the standout hydration performer,” Telford added.

That has forced the big brands to adapt: PepsiCo's prebiotic Pepsi brand cola, launched in autumn 2025, sold out in 30 hours and is now permanent nationally at 5g sugar and 3g fibre per serving, alongside Coca-Cola's prebiotic Sprite work in China and its long-established Coke+ and Chill Out platforms in Japan.

“But I would frame it as taste with benefits,” said Telford. “If a formulation tastes great, refreshes and carries lower sugar, the functional benefit is usually the tipping point that gives a consumer a reason to buy, not the primary driver.”

Pushing prebiotics, relaxation, and protein

Euromonitor International’s Innovation portal shows that of US carbonate launches since January 2021, 19% carry a prebiotic, probiotic or digestive health claim.

Trip, for instance, has defined that category in the UK, with around $100 million (€87.8 m) in profitable revenue announced in late 2025, a raise at a valuation above $300 million (€263.5 m) and more than 10,000 US doors. This is in a space where stress-relief drinks are growing about 19% a year, and 43% of consumers name stress as a key wellbeing issue.

Protein is another big trend entering the mainstream CSD space. “It has already crossed over from dairy and sports nutrition into clear, sparkling, sessionable formats,” Telford said.

A new way to engage with CSDs

As the CSD landscape evolves, it raises the question of whether consumers are genuinely changing their relationship with CSDs or whether brands are simply finding new ways to position familiar products.

“It is a combination of reformulation, flavour, and function aimed at bringing back consumers who had left the category,” said Telford. That could mean fibre or protein, no sugar or cane sugar rather than corn syrup.

Suntory launched NOPE in Japan in March 2026, a deliberately full-sugar carbonate sold explicitly on indulgence and guilty consumption, in a market its own trade press calls the era of the unsweetened. With 100 million bottles shipped in 150 days, it is Suntory's fastest-selling sparkling brand launch in decades. “You see the same permission-to-enjoy instinct in the US dirty soda craze,” Telford said.

Advice for CSD brands developing new products

“Flavour comes first,” Telford said. Odd flavour combinations or unpalatable sweeteners can hinder functional formulations. Flavour, visual identity and social-media readiness drive discovery and choice, with function serving as permission to indulge rather than as the headline.

From Trip to Poppi to Olipop, and right across energy drinks too, the winners are strong flavour innovators. Olipop and Poppi differentiated themselves in a highly consolidated sparkling category by embracing the playful imagery and flavour profiles of soda.

No brand goes anywhere in this category without a strong flavour profile. “Benefits get stacked on top of that, not the other way round,” Telford added.