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. 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.

Consumer insights:

• Modern sodas are carving out unique moments, such as gut health routines and low-calorie indulgences, that differentiate them from traditional soda usage.

• Brands that highlight benefits like prebiotics, natural ingredients, and low/no sugar are capturing unserved consumer needs and generating incremental demand.

• Buyers of modern soda are moving away from traditional carbonated drinks, opting for better-for-you beverages like kombucha, sparkling water, and plant-based alternatives.