- What is the power make-up of the global soft drink industry?
- Understanding the Carbonated Soft Drink (CSD) Industry
- Market share and market cap
- Who Makes More Money, Coca-Cola or Pepsi?
- What percentage of the market does Pepsi have?
- How much of the carbonated soft drink industry is controlled by Coca-Cola and Pepsi?
What is the power make-up of the global soft drink industry?
Two powerhouses control the carbonated soft drinks and beverage industry’s market share: PepsiCo. Inc. (PEP) and Coca-Cola Corporation (KO).
The Coca-Cola Company has been the market leader since 2004. According to Brand Finance, Coca-Cola, despite a 13% drop in brand value in 2021, remained the world’s most valuable soft drink brand at $33.2 billion in 2021. PepsiCo. Second place with $18.4 billion. Dr. Pepper-Snipple was the fastest growing soft drink brand with a 40% brand value increase, followed by Red Bull with a 15% increase.
- PepsiCo. Inc. and 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, each with several hundred brand names.
- According to industry statistics, the Coca-Cola Company has been the market leader since 2004.
- Pepsi is in second place, followed by Dr. Pepper-Snipple.
- 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 Drink (CSD) Industry
Carbonated soft drinks belong to the non-alcoholic beverage industry. The industry produces regular and diet fizzy drinks, juices, bottled water, sports and energy drinks, and hot and iced coffee and tea. The market leaders in this industry are Coca-Cola Corporation, PepsiCo. Inc. and Dr. Pepper Snapple.
The Coca-Cola Corporation and PepsiCo have been competitors for a long time. 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 from two empty cups – one filled with Pepsi Cola and the other with Coca-Cola. Consumers were asked to compare two drinks and choose the beverage of their choice. Pepsi Cola was the winner.
best selling csd
The best-selling CSDs in the US in 2021 were:
- Coca-Cola Classic
- Pepsi Cola
- diet Coke
- Dr Pepper
- Mountain Dew (Pepsi brand)
- Sprite (a Coca-Cola brand)
- diet pepsi
- coke zero
- Fanta (Coca-Cola brand)
- Diet Mountain Dew (Pepsi brand)
Coca-Cola, Inc. and PepsiCo have both risen about 14.5% over the past twelve months during the first quarter of 21022. Coca-Cola had a market cap of $268.4 billion and PepsiCo had a market cap of $229.3 billion.
Even the top brands of Coca-Cola have generally outperformed PepsiCo over the years. It’s difficult to reach a consensus over which company controls more of the market without drilling down into a specific type of drink, for example, diet versus regular. Beverage Digest reports that Coca-Cola’s flagship diet soda outperformed PepsiCo’s staple diet.
Both companies face competition from a growing market for healthier alternatives to energy and nutritional drinks such as sugary soda drinks. This has reduced Coca-Cola’s operating margin from about 25% to about 20% since the year 2000. To accommodate these changing market conditions, both Coca-Cola and PepsiCo have developed their own alternative drinks, but still face competition and declining market share. other competitors.
Coca-Cola has more than 500 global brands, with only 21 of them, generating revenues of about $1 billion per year. PepsiCo owns a wide variety of major brand-name food and beverage products, 22 of which generate more than $1 billion in revenue per year.
Both companies are spread across the globe, with a presence in over 200 countries. The companies and their respective primary brands are household names recognized around the world, but are probably best known for the rivalry between them, commonly known as the “Cola War”. With regard to longevity, targeted marketing campaigns and various marketing moves, this commercial war is considered one of the most epic in history.
Who Makes More Money, Coca-Cola or Pepsi?
In terms of market share, Coca-Cola has overtaken PepsiCo. In 2021, Coca-Cola brought in even more revenue: $38.7 billion compared to PepsiCo’s $25.3 billion. This translated into net income of $9.8 billion for KO and $7.6 billion for PEP.
What percentage of the market does Pepsi have?
In 2020, PepsiCo controlled about 26% of the US carbonated beverage market, up from 30.5% in the mid-2000s. Coca-Cola had about 44% of the US market share.
How much of the carbonated soft drink industry is controlled by Coca-Cola and Pepsi?
In the US, about three-quarters of the carbonated soft drinks and beverage industry is controlled by Coca-Cola and Pepsi alone.
Times have changed since the development of carbonated drinks. Consumers have started looking for healthier alternatives. Both cola brands have seen recent declines amid increased competition, and analysts anticipate a continuing downward trend for the two main brands. However, these two companies are expected to dominate the overall beverage market.