Coca-Cola Enters the Prebiotic Soda Market with Simply Pop, Challenging Olipop and Poppi

Coca-Cola made a major push into the fast-growing prebiotic soda market with the launch of Simply Pop in Feb-25, a new functional beverage aimed at health-conscious consumers. The company introduced Simply Pop in select markets on the West Coast and in the Southeast, directly competing with category pioneers Olipop and Poppi.

The move comes as traditional soda consumption in the United States (US) continues its long-term decline, driven by increasing health awareness and the rise of alternative beverages such as cold brews, energy drinks, and flavored waters. However, in contrast to the broader decline, prebiotic sodas have experienced explosive growth. According to Euromonitor International, the digestive health soft drink category expanded from USD 197 million in 2020 to approximately USD 440 million in 2024, fueled by changing consumer preferences and the rise of functional wellness beverages.

Simply Pop: Coca-Cola’s Take on Prebiotic Soda

Simply Pop is positioned as a natural extension of Coke’s Simply juice brand, leveraging its established reputation in the juice segment. The initial product lineup will include five fruit-forward flavors: Pineapple Mango, Lime, Strawberry, Fruit Punch, and Citrus Punch. Each beverage contains 25% to 30% real fruit juice, no added sugar, and added vitamin C and zinc for immune support.

Figure 1. Simply Pop Range of Flavors

The drinks also boast six grams of prebiotic fiber per serving—triple the amount in Poppi but slightly less than Olipop’s nine grams. Prebiotics, which support gut health by promoting the growth of beneficial bacteria, have been a key selling point for functional beverage brands, though the scientific consensus on their health benefits remains inconclusive.

According to Coke’s North American nutrition unit, consumer demand for functional beverages was a driving force behind the launch.

Growing Competition in the Functional Soda Space

Coke’s entry into the prebiotic soda market marks the latest development in an increasingly competitive space. Olipop, one of the category’s pioneers, recently secured USD50 million in Series C funding at a valuation of USD1.85 billion. Poppi, another major player, has aggressively invested in marketing, including its second consecutive Super Bowl ad campaign, underscoring the growing demand for functional sodas.

PepsiCo is also reportedly planning its own prebiotic soda launch in 2025, highlighting the strategic importance of the segment. Industry experts see the category as a battleground for legacy soda brands seeking to appeal to younger consumers, particularly Millennials and Gen Z, who are more inclined toward functional and wellness-oriented beverages.

Despite its significant resources—including a USD47 billion revenue stream in 2024 and a century of dominance in the soda category—Coke faces challenges in successfully capturing this niche. The company has struggled with past attempts to break into health-focused beverage segments, including the rapid discontinuation of Coke Spiced in 2024 and the underwhelming performance of its Aha sparkling water brand.

Market Outlook and Future Implications

The prebiotic soda category is still a small fraction of the broader soda industry, but its rapid growth suggests strong long-term potential. While Coca-Cola’s entry into the space could accelerate mainstream adoption, it also introduces new risks. Established prebiotic brands like Olipop and Poppi have built consumer trust through their emphasis on gut health benefits, while Coke’s involvement may invite greater scrutiny over health claims and product efficacy.

At the same time, regulatory and legal risks remain a concern for the industry. Poppi is currently engaged in a legal dispute over its marketing claims, based on a Cornell University study that cited that Poppi drinks contain not enough prebiotic fibre to provide meaningful gut health benefits as the company’s branding claims, which could set a precedent for how functional soda brands can promote their benefits.

Looking ahead, Coca-Cola’s ability to scale Simply Pop will depend on several factors: consumer reception, the effectiveness of its marketing campaigns, and its ability to differentiate from competitors in an increasingly crowded market. If successful, the move could reshape the functional beverage landscape, but if Simply Pop struggles to gain traction, it could become yet another case of Coca-Cola failing to capitalize on an emerging trend.