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
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.
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.
Why do people choose co*ke over Pepsi? ›
According to Psychology Today, 'you taste its price and many other aspects of the drink that do not register on the tongue. ' This is one of the arguments put forward as to why Coca-Cola sells more than Pepsi, even though on blind taste tests, Pepsi usually seems to win.
What is the war between Pepsi and Coca-Cola? ›
The two soda giants have duked it out for decades. Each has landed marketing punches, most memorably in 1985, when co*ke surrendered its original formula in reaction to Pepsi's growing market share, only to revert amid public outcry—a blunder that some believe actually won the war for co*ke.
Who is richer, Pepsi or co*ke? ›
At roughly $246 billion on Monday, Coca-Cola's market cap is more than $15 billion above PepsiCo's. Coca-Cola has long held the top spot in part due to its strong brand portfolio and record of sales growth.
Who is bigger, Pepsi or co*ke? ›
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.
Who dominates the soda industry? ›
Just two corporate powerhouses dominate the global market for soft drinks: PepsiCo. Inc. (PEP) and The Coca-Cola Corp. (KO).
What drinks outsell Coca-Cola? ›
Coca-Cola outsells every soft drink in almost all countries around the world, but there are at least 3 brands that could defend its home market: Inca Kola, Irn-Bru, and Vimto.
Where does Coca-Cola rank in the beverage industry? ›
The S&P Global Sustainability Yearbook 2024 rankings also confirm the company's number one global ranking in the beverage industry, with Coca-Cola HBC coming out in the top 1% of 9,400 companies across 62 industries.
Do people actually prefer Pepsi over co*ke? ›
In the blind taste test, the difference in percentage of participants who preferred co*ke over Pepsi decreased (Figure 1b). Forty-six percent preferred the taste of co*ke and 39% preferred the taste of Pepsi. About 15% of the participants showed no preference in the taste test.
Question:
| Preference | female | male |
|---|
| co*ke | 120 | 95 |
| Pepsi | 95 | 80 |
| Neither/ Unsure | 65 | 45 |
| Total | 280 | 220 |
In 1983, Pepsi outsold co*ke in supermarkets, forcing co*ke to rely on its bigger network of soda fountains and fast food tie-ins to maintain its market dominance. That was a triumph.
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.
Are Pepsi and co*ke friends? ›
The rivalry between Coca-Cola and Pepsi is legendary. Although the feud really heated up with the Pepsi Challenge in 1975 —which prompted Coca-Cola's horrific New co*ke debacle — the brands have been fighting each other for more than a century.
Which is older Pepsi vs co*ke? ›
co*ke was the first soda ever created back in 1886. Then, in 1898, a rivalry that would span decades was born as soon as Pepsi hit the market. Today, each brand has a strong and distinct presence thanks to individual marketing strategies that make them obviously different from one another.
How much of Pepsi does co*ke own? ›
Pepsi is not owned by Coca-Cola. The two companies have competed for more than 100 years and are the world's biggest beverage companies. They effectively have a duopoly in the beverages sector, though they do compete with smaller companies like Keurig Dr Pepper (NASDAQ:KDP).
What is the big 3 of soda? ›
Big Soda usually refers to the giants of the soft drink industry, such as The Coca-Cola Company, PepsiCo, and Keurig Dr Pepper.
Is Dr Pepper owned by co*ke or Pepsi? ›
Strangely, Dr Pepper is only owned by Coca Cola in its European and South Korean markets. Everywhere else it is sold is managed by the Keurig Dr Pepper company. Oli joined the Latest News team in 2021, taking an interest in economics, world news, and articles that build from his study of history.
