For decades, soda was considered an indulgence. Even diet sodas have lingering questions about whether they’re a healthy choice, and while they might be a better choice, they’re not exactly good for you.
“Diet sodas contain little to no calories and offer essentially no benefit from a nutritional standpoint: The concern here is with the potential of missing out on opportunities to consume something else, such as low-fat milk (source of calcium) or unsweetened green tea (source of micronutrients that may offer anti-inflammatory benefits),” a report from The Ohio State University shared.
The researchers noted that diet soda was a better choice than full-sugar soda, but suggested other options.
“If you’re looking to decrease or eliminate soda intake, but still crave something ‘bubbly,’ try flavored sparkling water,” the report suggested. “Other alternatives include trendy products, such as lower-sugar varieties of Kombucha, a fermented tea that contains probiotics, which may be helpful for gut bacteria, or mixing small amounts of 100% juice with club soda.”
Now, however, Coca-Cola is making a new move in the so-called functional beverage space. The company is following rival PepsiCo, which introduced Pepsi Prebiotic Cola in Feb.
Coca-Cola creates functional beverages
While Coca-Cola has been in the functional beverage space with its Simply Pop line, the company had not introduced new versions of its namesake and top-selling sodas. That’s changing, at least on a limited basis.
The company is launching what it’s calling “a regional test-and-learn of Coca‑Cola Zero Sugar, Sprite Zero Sugar and Fresca with prebiotic fiber,” according to a press release.
Coca-Cola said the test will begin in late October and it will involve new versions of “Coca‑Cola Zero Sugar, Sprite Zero Sugar and Fresca, each formulated with 6 grams of prebiotic fiber and zero sugar. The pilot will be available on a limited basis across parts of New York, New Jersey and Pennsylvania as the company evaluates consumer response,” according to the press release.
Coca-Cola Marketing President Shakir Moin commented on the launch.
“For us, innovation starts with the consumer,” said Shakir. “It’s about understanding what people are looking for, where their interests are going, and then using the strength of our brands to create something relevant and compelling. That’s how we continue to learn, evolve and bring new choices to consumers.”
Functional beverages are a growing category
While PepsiCo sells Pepsi Prebiotic Cola nationwide, Coca-Cola is taking a more cautious approach. The Pepsi product offers what the company calls “the great Unbelievably Pepsi taste” with no artificial sweeteners, just 30 calories, only 5g of sugar, and 3g of prebiotic fiber.
That’s less fiber and more sugar than the Coca-Cola products being tested.
Both companies, however, are trying to make a mark in a space called “functional beverages” or even “good for you” drinks.
Consumers are increasingly looking for familiar soda brands that offer something more, whether that’s added fiber, less sugar or other functional ingredients.
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When Coca-Cola entered that space with its Simply Pop line in Feb. 2025, Fortune described the category as “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.”
“The size has more than doubled in the last year but remains relatively small,” Citi lead beverages analyst Filippo Falorni told Fortune.
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Coca-Cola doesn’t want to be left behind
While he did not mention functional beverages, Coca-Cola CEO Henrique Braun made it clear that he wants to leverage the company’s best-known brands.
“We are focused on driving more from more markets and more from more brands. This quarter’s results show that we are making our brands more relevant to more consumers and making our $32 billion brands work harder for us,” he said during the company’s second-quarter earnings call.
He shared an example.
“For example, evening occasions remain a meaningful untapped opportunity. By redesigning Coca-Cola Zero Zero, we are better positioning the brand for this moment,” Braun added.
As an occasional Coke Zero drinker who has dabbled in the functional beverage space, I see this as a smart move. I’ve tried the cola flavor by Oli Pop, and it wasn’t exactly the taste I’d hoped for.
If Coke can capture its classic flavor profile, I can see myself sometimes reaching for the so-called healthy version, in the same way, I’ll have a Coke Zero as something I see as a reasonable indulgence.
Alternative sodas are a growing category
Data from Circana uses the term “modern soda” and shows a fast-growing category.
“Modern soda is redefining the beverage sector with health-forward innovation and rapid growth. Now a $1.8 billion category in the U.S., modern soda has achieved an 83% year-over-year dollar sales increase, fueled by consumer demand for functional, better-for-you alternatives,” the research firm shared.
The customer base for these drinks at least partially explains why both Coca-Cola and PepsiCo have targeted this market.
“With a buyer base that is younger, more diverse, and more affluent than traditional soft drink consumers, modern soda has carved out a distinct space in the market,” Circana added.
Grand View Research took a narrower look at the market.
“The global probiotic and prebiotic soda market size was valued at $516.4 million in 2025 and is projected to grow from $558.0 million in 2026 to $978.9 million by 2033, at a CAGR of 8.4% from 2026 to 2033. North America dominated the probiotic and prebiotic soda market, accounting for the largest revenue share of 43.2% in 2025,” the report showed.
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