The term ‘modern soda’ was coined in 2024 by Walmart: featuring innovative, better-for-you brands that are far from the traditional sugar-packed drinks loved by previous generations.
Brands like stevia-sweetened Zevia and gut health brands Olipop and Poppi have led the charge in this new section.
And while lower sugar and lower calories are still important, there modern soda category is evolving.
Functionality moves centre stage
Now, most brands recognize that simply being lower sugar is not enough.
“The best modern soda brands have recognized that declaring better-for-you is no longer a differentiator,“ said Betty Kaufman, strategy director at US food and beverage agency, The Culinary Edge.
“As the space becomes even more saturated with minimally differentiated offerings, functional credentials are now table stakes.”
And it’s also about going beyond the product itself.
“Brands that break through pair health benefits with a strong cultural or flavor point of view, creating a story and experience that resonates beyond the ingredient panel,” continues Kaufman.
Consequently, there’s now a clear shift in how better-for-you claims resonate with consumers, continues Kaufman.
“Generic clean and natural messaging is losing credibility and shelf distinction, while functional specificity is increasingly valued,” she said.
“The next frontier is functional layering: Products that combine multiple benefits, such as adaptogens, nootropics, hydration, energy, fiber, or protein.
“Early examples are already emerging, but brands must avoid overwhelming consumers with overcomplicated messaging. The most successful brands will remain disciplined about what they stand for.”
Soda - and beyond
But the biggest evolution of the modern soda is not actually about soda. It’s about how the movement is influencing the wider beverage category.
“We’re seeing more benefits [from modern soda] come to adjacent categories,” said Ben Lerman, vice president of brand growth consulting at SPINS.
“So teas, sparkling waters... since consumers are looking for these benefits, non-sodas have started to add the benefits to their drinks as well. We’re seeing this across a lot of ready-to-drink beverages in store.
“All of this is bringing in more households, increasing trial, increasing usage rate, and shaping how shoppers shop in the category. It’s influencing how brands are innovating, and it’s even changing how stores and merchandising this space.”
Modern soda - already a movement reshaping the soda space - is on track to revamp the whole non-alcoholic beverage industry.
