The Growing Demand for No-Sugar Beverages: Coca-Cola’s Response to a Changing Market
The soft drink industry is witnessing a profound shift in consumer preferences, particularly regarding sweeteners. As the debate continues over whether Coca-Cola should use high-fructose corn syrup (HFCS) or cane sugar, a more pressing concern arises: an increasing number of consumers are opting for beverages without added sugars entirely. This shift highlights the urgent need for beverage companies to adapt to evolving health-conscious consumer demands. Learn more about this trend on Statista’s Beverage Statistics.
Coca-Cola Zero Sugar, introduced in 2017, reflects this shift toward healthier options. This drink utilizes both the artificial sweetener aspartame and the natural sweetener stevia, propelling it to become one of the company’s fastest-growing products. In fact, Coca-Cola Zero’s global case volumes surged by 14% in Q1 2025, far exceeding the company’s overall growth of just 2%. This trend is not isolated to Coca-Cola; PepsiCo recently revealed that low- or no-sugar drinks accounted for 60% of its sales in major markets during the second quarter of the year. The significant demand for no-sugar colas emphasizes an evolving consumer landscape, signaling a need for companies to diversify their offerings.
The recent comments from Donald Trump regarding Coca-Cola’s sweeteners have only fueled this ongoing discussion. On social media, Trump claimed that Coca-Cola had agreed to switch to cane sugar for its standard soda manufactured in the U.S. While Coca-Cola did not confirm Trump’s statement, it acknowledged his enthusiasm and indicated that updates on new offerings would be shared soon. However, experts remain skeptical about Coca-Cola fully abandoning HFCS, as the logistics associated with sourcing cane sugar could pose substantial challenges. Notably, the U.S. lacks the capacity to produce enough cane sugar to meet Coca-Cola’s needs, given that HFCS has sweetened Coca-Cola beverages since the 1980s.
Unsurprisingly, the corn industry expressed its discontent with the notion of Coke switching to cane sugar. The Corn Refiners Association contended that such a switch would threaten thousands of American manufacturing jobs. Following Trump’s announcement, shares in ADM, a major HFCS manufacturer, dropped by nearly 2%. Coca-Cola affirmed its position on HFCS, stating that it occurs naturally in foods and poses no greater risk of obesity than traditional table sugar. The company also noted that the FDA has affirmed no significant safety distinctions between HFCS and other sweeteners, further reinforcing its use.
Consumer preferences are continuously evolving, with soft drink choices becoming more health-centric. Recent trends suggest that beverage manufacturers must pivot their strategies toward low- and no-sugar offerings, resonating with a health-conscious audience. Data indicates that while original Coca-Cola remains the top seller by volume in the U.S., with a 19% market share, Coke Zero Sugar experienced a robust 10% increase in market share, despite holding only 4% overall. Market research from Mintel also forecasts substantial growth for low-sugar alternatives. Full-sugar sodas are expected to see only a 3.4% rise in sales for 2025, while diet sodas could grow by an impressive 11.8%.
Nevertheless, experts and nutritionists warn against the dangers of hidden sugars and recommend limiting added sugars in diets. According to the 2020 U.S. dietary guidelines, people should curtail their intake of foods and beverages with high added sugars. This is especially crucial for children under two, who should not consume any added sugars at all. Health Secretary Robert F. Kennedy has been vocal about the adverse effects of sugar, emphasizing that it is essential for Americans to recognize the detrimental health implications associated with excessive sugar consumption. His agency is set to release revised nutrition guidelines later this year.
In conclusion, the growing demand for no-sugar beverages presents both challenges and opportunities for beverage makers like Coca-Cola and PepsiCo. The success of products like Coca-Cola Zero Sugar underscores a significant market shift toward health-conscious alternatives. While debates over sweeteners like HFCS and cane sugar continue to simmer, the real demand lies in offering no-sugar beverages that align with the preferences of today’s consumers. As health guides and consumer insights evolve, beverage companies must adapt or risk losing their footing in an increasingly health-focused market. For further insights into emerging beverage trends, visit Beverage Digest.
