Who Rules the Global Beverage Industry?
Just two corporate powerhouses dominate the global market for soft drinks: PepsiCo. Inc. (PEP) and The Coca-Cola Corp. (KO).
Since 2004, Coca-Cola has been the market leader. Coca-Cola remains the world’s most valuable soft drink brand with a market cap of $266.173 billion as of April 26, 2024. PepsiCo. is a close second at $241.386 billion. Keurig Dr. Pepper (KDP) was the third soft drink brand with a $45.71 billion market cap.
Some analysts believe that Pepsi has a shot at surpassing Coca-Cola soon, but not by selling more soda. Pepsi also has a broad lineup of snack brands like Doritos, Cheetos, and Lay's Potato Chips.
Key Takeaways:
- PepsiCo. Inc. and The Coca-Cola Corporation are the two powerhouses controlling the bulk of the carbonated soft drink (CSD) and beverage industry.
- Both companies have a large global presence, controlling several hundred brand names each.
- Since 2004, Coca-Cola Company has been the market leader, according to industry statistics.
- Pepsi ranks second, followed by Keurig Dr. Pepper.
Understanding the Soft Drinks Industry
Soft drinks belong to the non-alcoholic beverage industry. This industry produces carbonated drinks, juice, bottled water, sports and energy drinks, and hot and iced coffee and tea. The market leaders in this industry are The Coca-Cola Corporation, PepsiCo Inc., and Keurig Dr. Pepper.
The Coca-Cola Corporation and PepsiCo are long-term competitors. Pepsi has been using its famous "Pepsi Challenge" as a promotional slogan since 1975. The challenge was originally a blind taste test in which consumers were invited to try both beverages. Pepsi was the winner, and a long-running ad campaign was born.
World's Favorite Drinks 2023
The top-selling non-alcoholic drinks worldwide in 2023 were:
- Coca-Cola Classic
- Pepsi Cola
- Red Bull
- Monster
- Nescafe
- Gatorade (owned by PepsiCo)
- Dr Pepper
- Sprite (owned by Coca-Cola)
- Nongfu Spring
- Lipton
Market Share and Market Cap
Both Coca-Cola, Inc. and PepsiCo dropped in market share by about 5-6% over the trailing twelve months through the first quarter of 2024.
Coca-Cola had a market cap of $261 billion and PepsiCo had a market cap of $242 billion as of the end of the first quarter.
Healthy Directions
Their historic rivalry isn't the only concern facing executives of Coca-Cola and PepsiCo. Consumer tastes are evolving away from sugary drinks and towards healthier alternatives and energy drinks.
Both companies are trying to evolve with them.
Coca-Cola brands now include Simply juices, smartwater, Dasani, and vitaminwater.
PepsiCo owns Quaker Foods, Tropicana, and Aquafina,
co*ke vs. Pepsi: Who Sells More Soft Drinks?
Coca-Cola's carbonated soft drinks brands dominated the U.S. market at a 69% U.S. market share in 2023, according to AdAge. Pepsi brands were a distant second at 27%.
co*ke vs. Pepsi: How Are They Different as Companies?
One big difference is that Coca-Cola has stuck pretty much to non-alcoholic drinks while expanding. Its brands include Fanta, Minute Maid, Fresca, Barq's, and Costa Coffee, among others.
PepsiCo, meanwhile, has expanded heavily into foods, particularly snack foods. Its brands include Lay's and Ruffles potato chips, Tostitos, Starbucks Frappaccinno, and Sabra Hummus, as well as Quaker Oats.
Who Cares About the Cola Wars?
You'd be surprised. A February 2024 story in the website Deadline reports that Sony Pictures won a hot bidding war for "Cola Wars," a movie script that tells the riveting story of underdog PepsiCo's epic decades-long rivalry with reigning cola king Coca-Cola.
The Bottom Line
Times have changed since the development of carbonated beverages. Consumers have begun to seek out healthier alternatives. Both cola brands have seen a recent decline amid increased competition, and analysts foresee a continued downward trend for the two main brands.
However, these two companies are expected to continue to dominate the overall beverage market.
FAQs
co*ke trademark brands (Coca-Cola, Diet co*ke, co*ke Zero Sugar and others) controlled 69% of the segment while Pepsi (Pepsi-Cola, Diet Pepsi and Pepsi Zero Sugar) captured 27%. Cola accounted for half of the $96 billion that U.S. consumers spent on all soft drinks in 2023, Beverage Digest figures show.
Who dominates the soft drink industry? ›
Just two corporate powerhouses dominate the global market for soft drinks: PepsiCo. Inc. (PEP) and The Coca-Cola Corp. (KO).
Who is the leader of the soft drink industry? ›
The Coca-Cola Company
Headquartered in Atlanta, Georgia, The Coca-Cola Company is the undisputed leader in the soft drink industry. Founded in 1892, the company owns more than 500 brands and operates in over 200 countries.
Who owns more drinks co*ke or Pepsi? ›
Leading U.S. CSD companies 2022, based on volume share
In 2022, Coca-Cola was ranked as the leading carbonated soft drink (CSD) company in the United States with a volume share of 46.3 percent. Ranked second, PepsiCo garnered a volume share of 24.7 percent that year.
How has the competition battle between Pepsi and Coca-Cola affected the industry? ›
How has the competition between co*ke and Pepsi affected the industry's profits? The competition between co*ke and Pepsi affected the industry's profits because they have branched out to other markets. By making high quality products and branching out to the food industry the profits have greatly increased.
Does Coca-Cola dominate the beverage industry? ›
Coca-Cola has been consistently ranked as the top soft drink brand worldwide, with a global brand value of over 98 billion U.S. dollars. Other soft drink brands manufactured and sold by the Coca-Cola Company include Diet co*ke, Sprite, and Fanta.
Who leads the beverage industry? ›
Leading beverage companies worldwide in 2022, based on sales (in million U.S. dollars) The Coca-Cola Co. PepsiCo Inc. Starbucks Corp.
Is Coca-Cola the biggest beverage company? ›
Based in Atlanta, Georgia, The Coca-Cola Company (NYSE:KO) is like the big boss of the soft drink world and is arguably the largest soft drink company of the world.
What is the richest beverage company? ›
Who is the king of soft drinks? ›
Journey of Coca-Cola from Temperance to King of Soft Drinks. Pepsi or co*ke? You've probably been asked that question more than a few times in your life. And while you may have a preference, there is definitely no contest: Coca-Cola is the king of soft drinks.
Which brand currently dominates the market share worldwide, co*ke or Pepsi? As of 2021, co*ke dominates the market share worldwide with a share of around 48%, while Pepsi has a share of approximately 20.5%.
Does co*ke outsell Pepsi? ›
co*ke trademark brands (Coca-Cola, Diet co*ke, co*ke Zero Sugar and others) controlled 69% of the segment while Pepsi (Pepsi-Cola, Diet Pepsi and Pepsi Zero Sugar) captured 27%. Cola accounted for half of the $96 billion that U.S. consumers spent on all soft drinks in 2023, Beverage Digest figures show.
Is Pepsi or co*ke wealthier? ›
At roughly $246 billion on Monday, Coca-Cola's market cap is nearly $15 billion above PepsiCo's. Coca-Cola has long held down the top spot in part due to its strong brand portfolio and record of sales growth.
Who won the co*ke Pepsi War? ›
While co*ke wins for taste and perceived caffeine levels, amid the pandemic, PepsiCo fared far better than its rival. (Schwartz 2020) With restaurants, movie theaters, and sports stadiums closed, Coca-Cola's sales dropped 28%. Meanwhile, PepsiCo's sales have stayed flat—kept afloat by loyal Frito-Lay snackers.
Why are Coca Cola and Pepsi enemies? ›
The Origins of the Coca-Cola-Pepsi Rivalry
Coca-Cola was the clear market leader at first, dominating the market with its signature formula and marketing campaigns. PepsiCo, on the other hand, eventually caught up, thanks in part to innovative marketing strategies and lower prices.
What is the conflict between Coca Cola and Pepsi? ›
The Cola Wars, a protracted corporate rivalry between beverage titans Coca-Cola and PepsiCo, has been a compelling saga in the annals of business competition. Originating in the late 1800s with the founding of Coca-Cola and Pepsi-Cola, the conflict evolved into a multifaceted, global struggle for market supremacy.
Who is the biggest soft drink company? ›
Based in Atlanta, Georgia, The Coca-Cola Company (NYSE:KO) is like the big boss of the soft drink world and is arguably the largest soft drink company of the world. They've been at it since 1892, with over 500 brands under their belt and reaching thirsty folks in 200+ countries.
Who is Coca-Cola's biggest competitor? ›
The Cola wars are the long-time rivalry between soft drink producers The Coca-Cola Company and PepsiCo, who have engaged in mutually-targeted marketing campaigns for the direct competition between each company's product lines, especially their flagship colas, Coca-Cola and Pepsi.
Who is bigger, co*ke or Pepsi? ›
The brand co*ke is owned by The Coca-Cola Company, along with numerous other soft drinks. In terms of overall size, PepsiCo has a market capitalization (the value of all outstanding common shares) of $232 Billion USD while the Coca-Cola Company has a market capitalization of $256 Billion USD.
