Market Leadership in the Cola Wars
The rivalry between Coca-Cola and PepsiCo is legendary, often dubbed the "cola wars". While anecdotal evidence might suggest a fierce, even battle, market data in the U.S. tells a very different story. Historically, and in recent years, Coca-Cola has maintained a significant lead over Pepsi in terms of carbonated soft drink (CSD) sales volume.
For many years, Coca-Cola and Pepsi held the number one and two spots, respectively, in the U.S. soda market. However, recent years have seen Pepsi's flagship brand lose its long-held second-place position. A 2023 report from Beverage Digest revealed that Dr. Pepper had overtaken Pepsi. By 2024, Pepsi's sales had fallen further, dropping to fourth place behind another Coca-Cola brand, Sprite.
The Shifting Soft Drink Landscape
Several factors contribute to Coca-Cola's dominance and Pepsi's changing fortunes. For one, the overall beverage market is evolving, with consumers increasingly opting for non-carbonated or healthier options. While this affects both companies, Coca-Cola's overall beverage portfolio and brand strength have helped it weather the shift better in the CSD category.
- Brand Loyalty: Coca-Cola's iconic brand has cultivated a deep-seated loyalty that transcends market fluctuations. For many, "Coke" has become a generic term for cola, reflecting its ingrained position in American culture.
- Strategic Diversification: While both companies have vast product portfolios, PepsiCo's higher revenue is significantly driven by its food and snack division, Frito-Lay, rather than its beverage sales alone. In contrast, Coca-Cola's dominance is more focused on its beverage segment, where it has a higher market share in CSDs.
- Emerging Competitors: The rise of other strong contenders like Dr. Pepper and Sprite has fragmented the market and directly impacted Pepsi's standing. The fact that a second Coke-owned brand surpassed Pepsi further highlights the challenge the company faces in the CSD market.
- Distribution Networks: Coca-Cola has long maintained a formidable distribution network, ensuring its products are available and highly visible across countless retail outlets, restaurants, and vending machines. This widespread availability reinforces its market position.
A Tale of Two Portfolios
When comparing the two corporations, it is critical to distinguish between the performance of the flagship cola beverages and the overall company performance. As of 2025, PepsiCo generates more total revenue than the Coca-Cola Company, thanks to its snack and food brands. However, this broader success does not translate to the core "cola wars" metric.
| Metric | Coca-Cola Company (KO) | PepsiCo, Inc. (PEP) |
|---|---|---|
| US CSD Market Rank (2024) | #1 (Coca-Cola Classic), #3 (Sprite) | #4 (Pepsi) |
| US CSD Volume Share (2023) | Approx. 35% combined (Coke, Diet Coke, Sprite) | Substantially lower; Pepsi lost #2 spot |
| Revenue Generation | Higher growth rate in recent years, but lower total revenue than PepsiCo | Higher total revenue, largely driven by snack division (Frito-Lay) |
| Global CSD Market | Dominant market share globally | Significantly smaller share compared to Coke |
| Investment Diversification | Primarily beverage-focused, though expanding | Diverse food and beverage portfolio |
Consumer Preference and Beyond
While Coca-Cola outsells Pepsi overall in the U.S., regional preferences and consumer habits add nuance to the picture. In certain areas, like parts of central Appalachia and Montana, Pepsi has historically had a stronger foothold. However, these exceptions are not enough to tip the national balance. Consumer demographics also play a role, with marketing campaigns often targeting different segments.
Furthermore, the evolution of the beverage market is a key story. For example, the non-carbonated soft drink segment is projected for substantial growth between 2025 and 2034, driven by a consumer shift toward healthier options. Both companies are investing in this space, but the classic soda rivalry is where their brand identities are most fiercely defined. For example, PepsiCo acquired Gatorade, and The Coca-Cola Company owns Minute Maid and Vitaminwater.
Conclusion
In the definitive answer to the question, "Does the US drink more Pepsi or Coke?", the data clearly shows that Coca-Cola maintains a commanding lead in the U.S. carbonated soft drink market. Recent years have seen Pepsi's core brand slide further down the rankings, losing its long-held second-place spot to Dr. Pepper and then falling behind Sprite. While PepsiCo thrives as a larger food and beverage corporation overall due to its diverse portfolio, its namesake cola is a clear runner-up in the ongoing cola wars. For now, America's thirst for soda is unequivocally quenched by more Coca-Cola than Pepsi. [Link: Wikipedia - PepsiCo https://en.wikipedia.org/wiki/PepsiCo]
