Beverage company Coca-Cola (KO) continued to dominate soda sales in 2024, with the company’s titular drink capturing 19.1% of the market share. Its closest rival in the race to please consumers’ taste buds was Keurig Dr Pepper’s (KDP) flagship soda, Dr. Pepper, with 8.3% of the market opting for it. Rounding out the top three most popular U.S. sodas was Coca-Cola’s Sprite at 8.03%.
Consumer preferences have shifted in recent years as Dr. Pepper first claimed the number two spot in 2023. Sprite has seen increased demand, breaking into the top three U.S. sodas last year after missing that cutoff for years.
What hasn’t changed is America’s love of Coca-Cola. With a market share that’s more than double its closes rival, it doesn’t look like the cola company has anything to worry about with changing consumer tastes.
What Happened to Pepsi?
Once upon a time, Pepsi’s (PEP) main drink was the biggest rival of Coca-Cola. Now, it can’t even break into the top three. Pepsi was bumped out of its number two spot in 2023, a position it long held, after Dr. Pepper’s popularity increased thanks ad campaigns that grew consumer awareness. Unfortunately for PEP investors, its market share decreased further in 2024 to 7.97%, placing it behind Sprite.
While Pepsi is losing ground with its classic flavor, the soda brand is still the second-most popular in the U.S. when additional flavors and variants are accounted for. It’s not out of the race yet, but Pepsi is losing some of its fizz.
KO vs. KDP vs. PEP: Which Soda Stocks Are Worth Buying?
Turning to Wall Street, analysts have a similar opinion on these soda stocks as consumers do. KO and KDP have consensus Strong Buy ratings, while PEP lags behind with a consensus Moderate Buy ratings. However, Pepsi stock has the highest upside potential at 15.45% with an average price target of $151.14, compared to Keurig Dr Pepper’s 14.68% and $39.07 price target, and Coca-Cola’s 11.18% and $79.38 price target.
