Coke vs. Pepsi: Who Rules the Beverage Industry?

These two companies dominate the global market for soft drinks

Reviewed by Margaret James

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 $307.22 billion as of March 9, 2025. PepsiCo. is a second at $211.814 billion. Keurig Dr. Pepper (KDP) was the third soft drink brand with a $45.234 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:

1. Coca-Cola Classic
2. Pepsi Cola
3. Red Bull
4. Monster
5. Nescafe
6. Gatorade (owned by PepsiCo)
7. Dr Pepper
8. Sprite (owned by Coca-Cola)
9. Nongfu Spring
10. 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,

Coke 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%.

Coke 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.