{"id":24926,"date":"2026-01-28T12:47:42","date_gmt":"2026-01-28T17:47:42","guid":{"rendered":"https:\/\/citystuff.com\/miami\/2026\/01\/28\/gen-z-loves-zero-sugar-sodas\/"},"modified":"2026-01-28T12:47:43","modified_gmt":"2026-01-28T17:47:43","slug":"gen-z-loves-zero-sugar-sodas","status":"publish","type":"post","link":"https:\/\/citystuff.com\/miami\/2026\/01\/28\/gen-z-loves-zero-sugar-sodas\/","title":{"rendered":"Gen Z loves ‘Zero Sugar’ sodas"},"content":{"rendered":"

Introduction to the Shift in Soda Preferences<\/h2>\n

The first Pepsi Challenge tour in 50 years didn\u2019t feature regular or even Diet Pepsi. Instead, the blind taste-test showdown last year pitted Pepsi Zero Sugar against Coca-Cola Zero Sugar. At the Super Bowl, it\u2019s Zero Sugar that will star in the beverage company\u2019s Pepsi commercial, not the original formula. PepsiCo Inc. is running a 30-second spot, which can run more than $8 million, to hype the no-calorie drink.<\/p>\n

The Rise of Zero Sugar<\/h2>\n

\u201cWe\u2019ve gone all in\u201d on Pepsi Zero Sugar in the last two years, said Ram Krishnan, the chief executive officer of PepsiCo North America, so much so that the vast majority of its Pepsi marketing budget is spent promoting Zero Sugar. It\u2019s not just Pepsi. Across the soda aisle, Diet is out and Zero Sugar is in. Keurig Dr Pepper Inc, for one, didn\u2019t have a single Zero Sugar offering in 2020. Now it has more than 40.<\/p>\n

The Difference Between Diet and Zero Sugar<\/h2>\n

Both Diet and Zero Sugar are calorie-free, artificially sweetened imitations of their sugary brethren. Yet, the latter\u2019s branding resonates more with younger, wellness-minded consumers, who shun sugar but don\u2019t vibe with calorie counting or diet culture. \u201cThe word \u2018diet\u2019 is from a different era. For a lot of younger consumers, it\u2019s radioactive,\u201d said Kevin Ryan, chief executive officer of Malachite Strategy and Research.<\/p>\n

Consumer Perception<\/h2>\n

Last year a viral TikTok likened Diet Coke to a \u201cfridge cigarette\u201d: a guilty, unhealthy pleasure that takes the edge off. Zero Sugar, on the other hand, has more of a \u201chealth halo,\u201d Krishnan, the Pepsi executive, said. Zero Sugar sodas are a small but growing part of US soft drink sales. Last year, they accounted for 52% of the category\u2019s sales growth, according to Circana data provided to Bloomberg. Both Pepsi and Coke sold more of their Zero Sugar offerings in the first nine months of 2025 than the same period a year prior. Sales of full sugar Pepsi and Coke declined during that time, as did Diet Pepsi. Diet Coke was up slightly.<\/p>\n

Impact on the Soda Industry<\/h2>\n

It\u2019s a sharp turn for soda\u2019s fortunes in the US, where sales by volume have fallen 27% over the last two decades as more consumers opt for water and energy drinks instead. PepsiCo\u2019s success with its Zero Sugar soda represents a bright spot for the company, which has struggled elsewhere to adapt to changing tastes. The soda and snack-maker\u2019s shares have posted annual declines for the past three years, which made it the target of an activist investor.<\/p>\n

Strategies for Reaching Gen-Z Consumers<\/h2>\n

Elliott Investment Management took a roughly $4 billion stake in the company last year and has since pushed for products that appeal to a more health-conscious consumer and for PepsiCo to focus on its core brands. For Madilyn Hovey, diet soda \u201cjust has that weird artificial taste to it.\u201d While sipping a Dr Pepper Cherry Zero Sugar, the 25-year-old said \u201cit\u2019s easier to feel like you\u2019re drinking the real thing.\u201d Reaching Gen-Z drinkers like Hovey \u2014 many of whom didn\u2019t grow up drinking soda \u2014 is key to Keurig Dr Pepper\u2019s strategy, said Derek Dabrowski, senior vice president of marketing at the maker of more than a dozen soda brands, including Sunkist, A&W and Canada Dry.<\/p>\n

Keurig Dr Pepper\u2019s Approach<\/h2>\n

Six years ago, while competitors\u2019 Zero Sugar drinks were multiplying, the company only had full sugar and Diet versions of its sodas. \u201cWe were a little late to the party,\u201d Dabrowski said. The upside of that was the company could see what was working for rivals. Keurig Dr Pepper found that flavored Zero Sugar sodas were selling better than Zero Sugar colas, which aligned well with its portfolio. From there, it decided to get into Zero in a big way. It axed Diet Sunkist, A&W and Canada Dry, replacing them with Zero Sugar options. (It kept Diet Dr Pepper, which has a loyal following.) It also added dozens of new flavors, like Dr Pepper Blackberry Zero Sugar and Dr Pepper Strawberries and Cream Zero Sugar.<\/p>\n

Market Performance<\/h2>\n

While there was some internal anxiety that the changes would alienate customers, they didn\u2019t, Dabrowski said. \u201cIt was a risk worth taking that has paid off.\u201d Keurig Dr Pepper\u2019s US sales of beverages like soft drinks rose 14.4% in the third quarter to $2.7 billion, helping offset weakness in its coffee division. The company last year announced plans to split its refreshment beverage and coffee businesses in two, a move that some analysts say will allow the soda-maker to better compete with PepsiCo and Coca-Cola.<\/p>\n

Winning Over Gen Z<\/h2>\n

Leaning into variety has particularly helped win over Gen Z consumers. The company\u2019s research has found that 72% of them try a new beverage every month, compared to just 16% of Boomers. The limited-edition Dr Pepper Creamy Coconut \u2014 inspired from seeing people on social media add coconut syrup to Dr Pepper \u2014 was the company\u2019s top-performing limited-time soda ever. Of course, it came in Zero Sugar, too. Big soda brands are \u201creally smart to create those multiple offerings,\u201d said Ben Goodwin, CEO of Olipop Inc., a prebiotic soda that\u2019s also winning over Gen Z with its health halo.<\/p>\n

Consumer Preferences<\/h2>\n

\u201cI\u2019m not an all-or-none kind of person,\u201d said Megan Stitz, a 26-year-old physical therapist in Des Moines, Iowa, who recently started drinking Zero Sugar sodas to cut down on processed sugar. \u201cI will still enjoy a full-sugar Coke if I want to.\u201d To that end, Pepsi has decided to bring back its taste test again this year with a new challenge. This time, people wearing blindfolds will decide in some markets if they prefer Pepsi Wild Cherry Zero Sugar or Coke Cherry Zero Sugar. Last year, Pepsi claims it won the battle in all 34 cities, including in Coke\u2019s home turf, Atlanta.<\/p>\n

Conclusion<\/h2>\n

The shift towards Zero Sugar sodas reflects a broader trend in consumer preferences, with younger generations seeking out products that align with their values and health goals. As the soda industry continues to evolve, it will be interesting to see how companies adapt to these changing tastes and preferences.<\/p>\n

FAQs<\/h2>\n