What Is the Power Make-Up of the Global Soft Drink Industry?
Two powerhouses control the market share of the carbonated soft drink and beverage industry: PepsiCo. Inc. (PEP) and The Coca-Cola Corporation (KO).
Since 2004, Coca-Cola Company has been the market leader. Coca-Cola, despite a brand value decline of 13% in 2021, remained the world’s most valued soft drink brand at $33.2 billion in 2021, according to Brand Finance. PepsiCo. takes second at $18.4 billion. Dr. Pepper-Snapple was the fastest-growing soft drink brand with a 40% brand value increase, followed by Red Bull’s 15% increase.
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 Dr. Pepper-Snapple.
In Q1 2022, PepsiCo had a market cap of $229.3 billion while Coca-Cola had a market cap of $268.4 billion.
Understanding the Carbonated Soft Drinks (CSD) Industry
Carbonated soft drinks belong to the non-alcoholic beverage industry. This industry produces regular and diet fizzy 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 Dr. Pepper Snapple.
The Coca-Cola Corporation and PepsiCo have been long-term competitors. Pepsi has been using the famous "Pepsi challenge" as a promotional slogan since 1975. The challenge was originally a taste experiment where consumers were invited to try beverages out of two blank cups—one filled with Pepsi Cola and one containing Coca-Cola. Consumers were asked to compare the two drinks and pick the one that they preferred. Pepsi Cola was the winner.
Top Selling CSDs
The top-selling CSDs in the U.S. in 2021 were:
Coca-Cola Classic
Pepsi Cola
Diet co*ke
Dr. Pepper
Mountain Dew (a Pepsi brand)
Sprite (a Coca-Cola brand)
Diet Pepsi
co*ke Zero
Fanta (a Coca-Cola brand)
Diet Mountain Dew (a Pepsi brand)
Market Share and Market Cap
Both Coca-Cola, Inc. and PepsiCo have risen by around 14.5% over the trailing twelve months through Q1 21022. Coca-Cola had a market cap of $268.4 billion and PepsiCo had a market cap of $229.3 billion.
Coca-Cola’s top brands also generally outperformed PepsiCo’s over the past several years. It is difficult to reach a consensus on which company controls more of the market without drilling down to a specific type of drink, for example, diet versus regular. Beverage Digest reports that Coca-Cola’s key diet sodas fared better than PepsiCo’s core diets.
Both companies face competition from the growing market of healthier alternatives to sugary soda drinks, such as energy and nutritional drinks. This has reduced Coca-Colas's operating margin from about 25% to approximately 20% since the year 2000. To adjust to these changing market conditions, both Coca-Cola and PepsiCo have developed their own alternative beverages but still face competition and market share erosion from other competitors.
Coca-Cola owns upwards of 500 global brands, with just 21 of which generate approximately $1 billion each, per year, in revenue. PepsiCo also has a wide variety of leading brand-name food and beverage products with 22 of those brands generating more than $1 billion each, per year, in revenue.
Both companies span the globe, having a leading presence in over 200 countries. The companies and their respective primary brands are household names recognized worldwide, but are possibly most famous for the rivalry between them, which is typically known as the “cola wars.” Regarding longevity, targeted marketing campaigns, and different marketing tricks, this commercial war is considered one of the most epic in history.
Who Makes More Money, Coca-Cola or Pepsi?
Coca-Cola outpaces PepsiCo in terms of market share. In 2021, Coca-Cola also brought in more revenue: $38.7 billion compared to PepsiCo's $25.3 billion. This translated into $9.8 billion of net income for KO and $7.6 billion for PEP.
What Percentage of the Market Does Pepsi Have?
In 2020, PepsiCo controlled around 26% of the U.S. carbonated beverage market, down from 30.5% in the mid-2000s. Coca-Cola had around 44% of the U.S. market share.
How Much of the Carbonated Soft Drink Industry Is Controlled by Coca-Cola and Pepsi?
In the U.S., around three-quarters of the carbonated soft drink and beverage industry is controlled by Coca-Cola and Pepsi alone.
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.
This statistic is an important one to consider when discussing the co*ke Vs Pepsi rivalry. Coca-Cola owned 17.8% of the global carbonated soft drink market in 2019, while Pepsi owned 8.4%. This statistic is a testament to the dominance of Coca-Cola in the global carbonated soft drink market.
This statistic is an important one to consider when discussing the co*ke Vs Pepsi rivalry. Coca-Cola owned 17.8% of the global carbonated soft drink market in 2019, while Pepsi owned 8.4%. This statistic is a testament to the dominance of Coca-Cola in the global carbonated soft drink market.
Coca-Cola is an worldwide renowned company. A company that owns over 500 brands, across 200 countries. Possessing a 42% market share in the global market share of the non-alcoholic beverage industry, Coca-Cola has dominated the beverage industry for over a century.
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.
Coca-Cola is the most popular soda brand in the world with a 43.3% market share. This statistic indicates that Coca-Cola is the leading brand in the global soda market, commanding a significant share of 43.3%.
Coca-Cola, which has been around for over 130 years, 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.
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.
American giant, Coca-Cola, has once again been named the world's most valuable soft drink brand, despite recording a 13% brand value decline to US$33.2 billion. Coca-Cola maintains a healthy lead over rival Pepsi, sitting in 2nd place with a brand value of US$18.4 billion.
Leading companies based on volume share include Coca-Cola Company, PepsiCo and Keurig Dr Pepper. Among the leading brands, Gatorade dominated the liquid refreshment beverage market in the United States in 2021, capturing about 52 percent of the market share.
Anheuser-Busch InBev, formed through a series of mergers and acquisitions, stands as the world's largest brewer. Operating on a global scale, Anheuser-Busch InBev has expanded its reach into various beverage segments, emphasizing product quality and consumer experience.
In 2022, Coca-Cola's U.S. market share amounted to 46.3 percent. Other soft drink industry market shares may be found here. The Coca-Cola Company is a producer, retailer and marketer of non-alcoholic beverages and is well-known for its soft drink, Coca-Cola.
With more than 500 brands available in more than 200 countries, Coca-Cola is the largest beverage manufacturer and distributor in the world, one of the largest corporations in the United States, and one of the most successful brands in marketing history. Its headquarters are in Atlanta, Georgia.
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.
The global Beverage market size was valued at USD 239105.7 million in 2022 and is expected to expand at a CAGR of 13.77% during the forecast period, reaching USD 518482.36 million by 2028. Beverage refers to processed liquids for drinking and is divided into soft drinks and alcoholic beverages.
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.
While Coca-Cola largely outsells PepsiCo, Inc. (NASDAQ:PEP) at the global level, there are some countries where Pepsi outsells co*ke and holds a larger share in those markets. These include India, Pakistan, Guatemala, Oman, and several provinces of Canada. One of the key reasons why PepsiCo, Inc.
In Q2 2023, Coca-Cola made around $12 billion in revenue, more than $10 billion less than PepsiCo made. Despite the gap in revenue, both companies are similar in net incomes, which is a testament to Coca-Cola's profit margins. PEP Revenue (Quarterly) data by YCharts.
Introduction: My name is Tyson Zemlak, I am a excited, light, sparkling, super, open, fair, magnificent person who loves writing and wants to share my knowledge and understanding with you.
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