The gut health soda category is small but growing fast. Soda with digestive health claims saw 301.5% dollar growth in 2023, according to SPINS MULO data.
The key selling point of a gut health soda is that it’s a massive upgrade on a traditional soda.
Traditional sodas are well-known as those that contain high amount of sugar and are characterized by ‘empty calories’ – a drink high in calories but with no nutritional value.
Enter the new modern soda category. This segment in contrast, offers consumers a much healthier take on a traditional classic and staple of the American diet.
A ‘gut health soda’ is an important sub-segment of this: generally one that contains prebiotic fibers as its better-for-you proposition.
“Prebiotic soda is a category that is rising in popularity within the functional beverage market that caters to the growing consumer demand for drinks with health benefits beyond basic nutrition,” explained Sean Harapko, EY Americas Supply Chain Transformation and Global Supply Chain RPA leader.
“Unlike their probiotic counterparts, which contain live bacteria, prebiotic sodas are typically lower in sugar and calories compared to traditional soft drinks and aim to appeal to the health-conscious consumer.
“While we see modest growth in the broader beverage category, functional beverages like prebiotic are growing at more rapid pace.”
What next for the gut health soda category
2025 has already been a big year for prebiotic soda. Coca-Cola announced its big push into the category with Simply Pop in February. This week, PepsiCo announced its acquisition of Poppi.
Other big name brands on shelves include Olipop and Culture Pop.
As more consumers and brands turn to the category, it’s growing. And it’s also becoming more competitive.
“As demand for healthier alternatives to sodas rises, the prebiotic soda market will continue to expand,” said Harapko.
“However, with growing competition, brands must bring to market new, innovative products and prioritize unique flavors while also focusing on brand positioning to build customer loyalty.
“At the same time, the industry is shifting toward sustainable packaging and responsible sourcing, reflecting consumer priorities for both health and environmental impact.
“Additionally, collaborations between beverage companies and health organizations are on the rise, helping to educate consumers on the benefits of prebiotic ingredients. This trend highlights a larger movement toward health-conscious beverage choices, shaping the future of the market.”
Innovation opportunity
“41% of US consumers are either taking steps to improve or prevent future problems with their gut health - it’s an enduring trend we’ve been watching for over a decade at Hartman Group," Shelley Balanko, PhD, senior vice president of Business Development at Hartman Group, told us.
“Gut health claims are certainly not new in the functional beverage space, however, consumers still have a strong appetite for innovation: of past-3-month category purchasers, 43% are interested in trying new, premium-quality functional beverage options.”
Innovation - and investment
But the gut health soda category is not as easy as other beverage categories to enter.
“Typically, prebiotic sodas incur higher production costs due to the sophisticated formulation and processing of quality ingredients to maintain health benefits and stability,” said Harapko of EY.
“Another challenge brands face is adhering to diverse food safety regulations across different regions. The new administration is particularly focused on increasing transparency in ingredient sourcing and nutritional information which is prompting brands to change how they are positioning themselves in the marketplace.
“To overcome these challenges, brands can invest in technology to streamline production, increase volume to achieve economies of scale and establish partnerships with ingredient supplies to secure better pricing.”
Teaching consumers about gut health
The war on sugar and soda is growing day by day. Consumers are shunning both sugar and artificial sweeteners. Beverage brands are doing what they can to reduce calories; but governments are also stepping in with stronger regulations and soda taxes.
But while consumers are becoming more and more savvy when it comes to health and wellness, there’s still work to be done. Sugar reduction is easy to understand: gut health is a more complex, scientific subject.
“On the consumer side, launching educational campaigns to raise awareness about the benefits of prebiotics and justifying the product’s value will help increase customer adoption and willingness to pay a premium,” said Harapko.
Most of the challenges, he says, can be addressed by getting the right expertise.
“To effectively navigate food safety regulations and minimize compliance costs, building in-house expertise or partnering with regulatory consultants will be critical.”
Identity of gut health superstars
But the battle of the brands - particularly when it comes to Coca-Cola and PepsiCo - could come down to identity and branding.
Both Coca-Cola and Pepsi’s modern soda bets carry very different messaging to their traditional sodas. That’s an unsurprising move, as both try and move away from the negative connotations (such as high sugar and calories) associated with their drinks).
“Identity will be a key factor as better-for-you sodas move from niche to mainstream,” said Matt Herbert, CEO and co-founder of brand tracking platform Tracksuit.
“According to Tracksuit data (Soft Drinks Category, USA, March 2024 to February 2025), Poppi is seen as modern, healthier and trendy, while Pepsi is perceived as classic, timeless and unhealthy.”
While Coca-Cola and Pepsi may be approaching gut health differently (Coca-Cola via a launch under its existing Simply Brand and PepsiCo via acquisition) the overarching message about the gut health category is the same.
“These are two very different bets on the future of soda – and proof that gut health sodas are no longer a niche category,” said Herbert.