The previous two-thirst race between Coke and Pepsi is now long gone, as the drinks market opens up further.
Pepsi’s free fall to 4th place in the Soda Wars: These are the new top-3 soft drinks in the U.S.
Pepsi used to be Coke’s only real competition. But in 2025, it’s no longer even in the top three of America’s best-selling sodas, according to recent data from Beverage Digest. That’s a remarkable slide for what was once the second most powerful brand in the carbonated drinks aisle.
Coke, Pepsi and the competition
It’s been a long time coming. While Coca-Cola still dominates the $97 billion U.S. soda market with a 19.1 percent share, Pepsi has been losing ground for decades, even as it’s tried to adapt with zero-sugar products and nostalgia-fueled marketing.
Dr Pepper, a quirky challenger once miles behind, quietly overtook Pepsi for second place last year. The brand, now sitting at 8.3 percent market share, benefited from flavor experimentation, Gen Z TikTok buzz, and smart sponsorships. It’s somehow become both your uncle’s favorite and your teenager’s latest obsession.
Then came the real surprise: Sprite overtook Pepsi, too. Yes, the lemon-lime underdog many assumed was only good for mixers and hangovers has leapfrogged into third place. Sprite now controls 8.03 percent of the market, edging out Pepsi’s 7.97 percent.
What’s behind Pepsi’s slide?
Coca-Cola gave Sprite a major makeover. The “Obey Your Thirst” campaign returned, now retooled for Gen Z with NBA star Anthony Edwards and sprinter Sha’Carri Richardson. Sprite Chill, a cooling sensation soda, pulled in $100 million in sales last year alone. And Sprite kept costs lean, cutting ad spend even as it rose in the ranks.
Meanwhile, Pepsi is still talking up its overall portfolio – which, thanks to Diet and Zero Sugar lines, still makes it the No. 2 soda brand family. But regular Pepsi has lost some of its fizz. Consumers are choosing lighter, trendier, or just plain different.
Pepsi says it’s not done fighting. It’s revived the Pepsi Challenge in a fresh round of pop-up blind taste tests, trying to win back Coke Zero drinkers. It claims 8 percent year-over-year growth in Wild Cherry. But market share tells the real story... and right now, Pepsi is off the podium.
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