Last month, beverage giant PepsiCo launched a very different kind of soda: Prebiotic Cola. With 30 calories, no artificial sweeteners, and three grams of prebiotic fibre, it’s the company’s response to a boom in functional drinks over recent years, as brands respond to a consumer base that’s increasingly interested in convenient, flavourful products that promise to optimise their health.
PepsiCo is the latest in a string of big-brand investments in the functional drinks space. Ahead of its Prebiotic Cola launch, the company acquired prebiotic soda company Poppi in May this year for $1.95 billion. Celsius Holdings — owners of Celsius energy drinks — acquired Alani Nu nutrition drinks for $1.8 billion in February. Nestlé acquired Nuun electrolyte tablets and Danone released Evian+ water for cognitive support, both in 2021. Challenger brands like nutrition drink AG1 and Bella Hadid’s Kin Euphorics have seen exponential growth since launching a few years ago. Continued development is expected across the board, with the market for functional beverages, already valued at $149.75 billion in 2024, projected to reach $248.5 billion by 2030.