In the historic battle for supremacy in the soft drink market in the United States, Pepsi used to be Coca-Cola's main competitor. For decades, the two brands fought for the throne, with Coca-Cola always leading and Pepsi in a close second place. However, in 2025, Pepsi has disappeared from the podium, falling to fourth place among the best-selling sodas in the country, according to recent data from Beverage Digest.
Pepsi's fall, one of the most iconic brands in the history of global consumption, marks the end of an era. Despite its efforts to keep itself relevant, such as expanding sugar-free products and nostalgic marketing, the brand has lost ground to unexpected competitors. The United States soft drink market, valued at $97 billion, is still dominated by Coca-Cola, which keeps a 19.1% market share.
Dr Pepper and Sprite, the new competition
While Coca-Cola still leads the ranking, the real change has been the rise of Dr Pepper and Sprite. In recent years, Dr Pepper, a competitor that once seemed years behind, has surpassed Pepsi, reaching second place with 8.3% of the market.
This growth has been driven by its experimentation with new flavors, the huge boom of all of Generation Z on TikTok, and a series of smart sponsorships. Somehow, it has managed to become a hit with both older generations and younger people.
The biggest surprise has been Sprite, a lemon-lime drink that was historically associated more with cocktails and hangovers than with competition in the soft drink market. With a renewed strategy, Sprite has climbed to third place, surpassing Pepsi with an 8.03% market share, just above Pepsi's 7.97%.
Sprite's revival has been possible thanks to a marketing campaign that has managed to connect with Generation Z. Also to the popularity of new products like Sprite Chill, which caused $100 million in sales just last year.
Pepsi's fall and its struggle to regain ground
Although Pepsi has tried to adapt to new times with sugar-free products and a focus on its diversified portfolio, the brand hasn't been able to stop its decline. Despite its constant effort to keep itself competitive, regular Pepsi has lost a lot of ground to lighter and more modern options that consumers prefer. The efforts to win back Coca-Cola Zero consumers, with the reactivation of the Pepsi Challenge and new blind tastings, haven't been enough.
Meanwhile, Coca-Cola remains the queen of the market, with a brand that keeps a bond with its consumers and continues to launch innovative products that resonate with young audiences. The battle for supremacy in the soft drink market is still fierce, but at this moment, Pepsi has fallen behind. Meanwhile, other brands, such as Dr Pepper and Sprite, are seizing the opportunity to gain ground.