- Coca-Cola is entering the fast-growing prebiotic soda market with the launch of Simply Pop as it seeks to tap into consumer demand for gut-health-focused drinks—an emerging but still niche category that analysts say has doubled in size over the past year but remains just 2% of the $42.4 billion U.S. soft drink market.
Coca-Cola is following its strong 2024 results by jumping into the fast-growing prebiotic soda market with the launch of Simply Pop, a new functional beverage aimed at health-conscious consumers.
The new drink, available in five fruit flavors, will debut under the Coca-Cola-owned Simply brand in select regions and online via Amazon Fresh starting late February 2025. Each 12-ounce slim will cost $2.49 and contain six grams of prebiotic fiber, as well as zinc and vitamin C for immune support.
The move marks the Fortune 500 beverage giant’s first foray into the prebiotic soda category, which has expanded rapidly but still remains a fraction of the broader soft drink industry.
It follows reports in early 2024 that Coca-Cola had been exploring an acquisition of Poppi, a leading brand in the space. According to sources, the company had engaged in discussions but could not finalize any deal.
Becca Kerr, CEO of nutrition for Coca-Cola in North America, told Fortune: “We are constantly exploring innovative ways to expand our product portfolio to meet evolving consumer needs, whether that’s through innovation or strategic acquisitions. We feel that Simply’s 20-plus years of expertise in elevated juice products make it the ideal brand to lead our exploration of the category.”
Prebiotic sodas are a niche but expanding market
Citi lead beverages analyst Filippo Falorni told Fortune that the U.S. soda probiotic market has surged to approximately $820 million in retail sales and now accounts for about 2% of the $42.4 billion U.S. soft drink market.
“The size has more than doubled in the last year but remains relatively small,” Falorni said.
The space is currently dominated by two private startups—Olipop and Poppi—both of which have capitalized on the growing consumer interest in gut health.
Poppi, in particular, has seen rapid growth, with sales reportedly reaching $100 million by the end of 2023, making it the top seller in the “soda soft drinks” category on Amazon.
However, Poppi also faces legal challenges over its health claims, adding potential uncertainty to the market.
Poppi previously said in a statement that it stands behind its products and “believes the lawsuit is baseless.”
Consumer trends fueling growth
The rise of prebiotic sodas is part of a broader shift toward functional beverages, as consumers increasingly seek out products with added health benefits.
Brands like Olipop and Poppi have positioned themselves as healthier alternatives to traditional sodas, targeting millennials and Gen Z consumers who prioritize wellness and recognizable natural ingredients.
Scientific research suggests that a minimum of five grams of prebiotics per day is needed to confer health benefits, but some nutrition experts are skeptical that prebiotic sodas contain enough fiber to be truly beneficial.
“I don’t think we should be looking to soda or to processed foods to support our gut health,” Caitlin Dow, a senior nutrition scientist at the Center for Science in the Public Interest, previously told NBC.
Sodas like Poppi and Olipop are “better than a regular soda,” she said. “Are they good for your gut? I doubt it.”
Challenges and opportunities for Coca-Cola
Coca-Cola’s decision to enter the market organically rather than through acquisition signals its belief in the long-term potential of functional sodas—a market that is expected to eventually draw in larger competitors.
“Pepsi has not announced anything yet, but I would think they are also exploring the options,” Falorni noted.
Still, the market presents challenges. While growth has been strong, it remains uncertain whether the prebiotic soda trend will have staying power.
“We’ve seen many new sub-categories fizzle out after a few years of strong growth,” Falorni cautioned.
For Coca-Cola, Simply Pop represents both a strategic expansion as it continues to diversify away from sugary drinks—as it has done with the acquisition of sports drink maker BodyArmor, Fairlife milk, and Vitaminwater—and a test of consumer appetite for functional sodas under a mass-market brand.
With its vast distribution network and marketing muscle, the company has the potential to accelerate adoption—but it will have to convince consumers that its offering is not just another passing fad.
The Atlanta-based beverage giant will be hoping for more success with Simply Pop than it had with its most recent new launch, Coca-Cola Spiced, which was pulled from shelves after just six months when it failed to resonate with customers.
