The soda market has grown beyond being an indulgence.
For decades, grabbing a Coke, a Pepsi, or some other flavor of soda was a treat. Now, at least for younger generations, soda has become a functional beverage.
Rachel Bonsignore, vice president of consumer life at NielsenIQ (NIQ), told Beverage Digest that Generation Z (people born between 1997 and 2012) is “really changing the way we think about beverages.”
“They want drinks that do more for them, products with probiotics, adaptogens, vitamins, and energy boosters,” she said. “Convenience plays a big role, too, so these products performing well in places like convenience stores.”
In addition, soda drinkers have become more concerned about the ingredients used in making their soda.
Within this broader shift toward cleaner labels and simpler ingredients, cane sugar has become a visible alternative to high-fructose corn syrup in mainstream soda products.
“For decades, Coke and the makers of other soft drinks have generally used high fructose corn syrup or artificial sweeteners in their products manufactured in the U.S. But American consumers are increasingly looking for food and drinks with fewer and more natural ingredients, and beverage companies are responding,” Food Manufacturing reported.
Now, Walmart has leaned into that trend by introducing a new line of sodas under its Great Value house brand.
Walmart embraces a soda trend
Sales for sugar labeled “organic” saw a 15% increase in addition to a 10.5% increase for sugar labeled “natural” for the year, according to Nielsen data, Food Dive reported.
“Soda companies aim to sweeten slowing sales by replacing high fructose corn syrup with cane sugar, which consumers perceive to be healthier,” the food industry website shared.
Now, Walmart has embraced that trend by introducing a new line of Great Value sodas made with cane sugar.
“Walmart just expanded its beverage options with four new soft drinks. While you might be used to launches from Coca-Cola and Pepsi, this lineup comes straight from the retailer under the Great Value private label. Walmart’s new sodas are available in Apple, Grapefruit, Lemon Lime, and Cola — all of which are sweetened with pure cane sugar,” All Recipes reported.
Walmart does not show the new soda line for sale on its website.
Sporked, however, confirmed the new product line, and explained why Walmart has embraced Cane Sugar.
“You see, most Mexican sodas (including the Mexican version of Coke) use cane sugar, and fans have been seeking them out whenever possible. And these new Walmart flavors appear to be based on several popular Mexican sodas. Even the packaging looks like it’s based on papel picado, a type of Mexican paper decoration used to decorate weddings and holidays,” according to the website.
Cane sugar sodas are a growing trend
President Donald Trump has been outspoken on Coca-Cola using cane sugar in its U.S. products.
“I have been speaking to Coca-Cola about using REAL Cane Sugar in Coke in the United States, and they have agreed to do so. I’d like to thank all of those in authority at Coca-Cola,” Trump said in a post on Truth Social.
That’s not entirely true, and Coca-Cola has not announced any change in how its products are formulated.
“A spokesperson for Coca-Cola said the Atlanta-based company will share details on new offerings soon, and that it appreciates Trump’s enthusiasm for its product,” Reuters reported.
Mexican Coca-Cola, which is made with cane sugar, can be purchased in the U.S., but Coke has yet to make any changes to its core product line in its home market, although it has said it plans to.
“As part of our ongoing innovation agenda, this fall in the United States, we plan to expand our trademark Coca-Cola product range with U.S. cane sugar to reflect consumer interest in differentiated experiences. This addition is designed to complement our strong core portfolio and offer more choice across occasions and preferences,” former Coca-Cola CEO James Quincey said during the company’s second-quarter earnings call.
Those remarks were made in July, 2025 and Coca-Cola has not yet introduced a new Coke variant featuring cane sugar in the U.S.
Coca-Cola does have some non-soda brands that use cane sugar.
“Actually, we use cane sugar in a number of our other brands in the U.S. portfolio from lemonades to teas, some of the coffee stuff, some of the vitamin water drinks. So it’s blended into some of our other products,” Quincey added.
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PepsiCo embraces cane sugar
PepsiCo CEO Ramon Laguarta addressed the possibility of using cane sugar in his company’s products during its second quarter 2025 earnings call.
“We’re following the consumer. And if the consumer is telling us that they prefer products that have sugar and they prefer products that have natural ingredients. We will give the consumer products that have sugar and have natural ingredients,” he said.
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In Feb., PepsiCo introduced a new version of its signature soda that embraces the functional soda and the cane sugar trends.
“The prebiotic soda delivers the ‘Unbelievably Pepsi’ taste people love, now with functional ingredients that reflect today’s modern beverage preferences. Available in Original Cola and Cherry Vanilla, Pepsi Prebiotic Cola contains no artificial sweeteners,” the company shared in a press release.
Soda trends are changing
Walmart and Pepsi are giving shoppers what they want.
“Today’s consumer seeks more premium, natural ingredients, like pure cane sugar as opposed to artificial high fructose corn syrup,” Carrie Gillespie, senior manager of field sales marketing at Monin Americas, told Beverage Industry.
Cane sugar is not the only ingredient consumers have demanded.
“There is also an increase in beverages featuring functional ingredients like vitamin C, elderberry, zinc, and B12 that naturally boost immunity and energy in contrast to those that contain synthetic ingredients,” she added.
Soda companies use cane sugar for a clear reason.
“High fructose corn syrup costs less. According to price data from the U.S. Department of Agriculture, the wholesale price of HFCS-55, the type of corn syrup most commonly used in beverages, averaged 49.4 cents per pound last year. The average wholesale price of refined cane sugar was 60.1 cents per pound, while the average wholesale price of refined beet sugar was 51.7 cents per pound,” according to Food Manufacturing.
Cane sugar appeals to part of the soda-drinking populace, but it’s not actually the fastest-growing market segment in the space.
“Carbonated soft drinks have been performing steadily for the most part, but the real growth is happening in zero-sugar and diet extensions,” Mitch Madoff, head of retail partnerships at Keychain, New York told Beverage Industry. “Traditional full-sugar colas remain relatively flat, while lower- and no-sugar options are driving momentum.”
Classic sodas, however, still have their place.
“Legacy brands like Coca-Cola, PepsiCo, and Dr. Pepper are still the go-to favorites, but the momentum is clearly moving toward lower- or no-sugar innovations and new variants,” he added.
Jack Doggett, food and drink analyst at Mintel, Chicago, said the data back that up.
“The U.S. carbonated soft drink market continued to grow in 2025, reaching an estimated valuation of $55.8 billion, a 6.2% increase from 2024,” he told Beverage Industry.
Diet sodas have been gaining share as well.
“Regular carbonated soft drinks retain a much larger share of the overall market than diet, with estimated values of $36.5 and $19.3 billion, respectively. However, diet is closing the gap, achieving double-digit percentage growth in sales year-over-year since 2021, including an estimated 11.8% growth in 2025.”
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