Although the cola wars of the 1980s may feel like a distant past, the rivalry between PepsiCo and its main competitor, Coca-Cola, continues to be as dynamic as ever. Beverage manufacturers are acutely aware that consumers are increasingly reducing their sugar intake, making it essential for them to offer a leading product that appeals to this expanding market segment. Sugar-free colas are one avenue that these companies are exploring for growth. According to Allied Market Research, the global sugar-free carbonated drinks market was valued at $125.3 billion in 2020 and is projected to reach $243.5 billion by 2030, with a compound annual growth rate of 7.3%.
PepsiCo and its rivals aim to produce a beverage that closely resembles the flavor of traditional cola, providing hesitant consumers with a compelling reason to switch. “It is not as simple as removing sugar from the product; you must add ingredients one at a time, monitoring the flavor impact and adjusting the amounts until you achieve the perfect taste,” said Damian Browne, vice president of R&D at PepsiCo Beverages North America. In a recent statement, PepsiCo indicated that consumer testing has revealed that the new Pepsi Zero Sugar surpasses the previous formula in key areas such as preference and purchase intent. The company reported that a comprehensive assessment showed consumers favored the new Pepsi Zero Sugar, finding it more refreshing, tastier, and possessing a genuine cola flavor.
The reformulation of the Zero Sugar beverage line marks just the beginning. The company plans to revamp Mango and Wild Cherry flavors, which are set to hit the shelves this spring. This update to the Zero Sugar line comes as PepsiCo trails behind a similar product from Coca-Cola. According to Beverage Digest data cited by CNN, Pepsi’s no-sugar cola accounts for less than 1% of overall soda sales, while Coke’s version captures nearly 4%, making the refresh of Zero Sugar a low-risk and necessary initiative.
Two years ago, the Atlanta-based Coca-Cola company launched an updated Coca-Cola Zero Sugar, claiming it tasted closer to its classic counterpart, though it utilized the same ingredients. Recently, PepsiCo has made substantial adjustments to segments of its beverage portfolio where it has been lagging, aiming to enhance its market presence. Alongside Zero Sugar, PepsiCo introduced a new lemon-lime soda named Starry, which could serve as a replacement for Sierra Mist. Additionally, the company is exploring innovative ingredients, such as calcium citrate 1500 mg chewable, to further enhance their offerings and attract health-conscious consumers.