Following Coca-Cola, Pepsi Enters the 'Gut Health Beverage Market'

PepsiCo acquires Poppi for $1.95 billion
Coca-Cola also enters the gut health beverage market

PepsiCo, the manufacturer of Pepsi-Cola, is acquiring the carbonated beverage brand Poppi for $1.95 billion (approximately 2.8 trillion KRW) to enter the 'prebiotics market,' which is known to support gut health, the UK Financial Times (FT) reported on the 17th (local time).

Diet Pepsi without Aspartame
Photo by PepsiCo

Ramon Laguarta, CEO of PepsiCo, said, "Consumers are increasingly interested in health and wellness, and Poppi is a brand well-suited to meet this demand."

Poppi secured initial funding on ABC's popular investment show Shark Tank and has grown by promoting its benefits of aiding the growth of beneficial gut bacteria and having lower sugar content than traditional carbonated drinks. Poppi's main ingredients are fruit juice, vinegar, and prebiotic components, and it gained popularity through viral marketing on social media platforms such as TikTok. Poppi ranks first in the U.S. gut health beverage market with annual sales exceeding $500 million (approximately 670 billion KRW), and its retail sales increased by 163% year-over-year as of January 25, 2024. The gut health carbonated beverage market is expected to reach $2 billion by 2029.

Competitor Coca-Cola also recently entered the prebiotics market by launching a new product called Simply Pop. This is an extension of its fruit juice brand Simply, targeting the preferences of the younger generation.

Duane Stanford, editor-in-chief of beverage trade media Beverage Digest, said, "With Pepsi's acquisition and Coca-Cola's new product launch, gut health carbonated beverages have officially become a competitive arena for major corporations," adding, "In the long term, competition will intensify as more brands enter the market."