Pepsi Falls to Fourth Place in U.S. Soda Rankings as Sprite Surges Ahead
Pepsi, once the dominant rival to Coca-Cola, has slipped to fourth place in the U.S. soft drink market, according to new data from Beverage Digest – marking a significant turning point in the long-running “Soda Wars.”
While Coca-Cola continues to lead the $97 billion U.S. carbonated beverage industry with a commanding 19.1% market share, Pepsi’s position has steadily weakened. Now, it trails not just Coca-Cola and Dr Pepper, but also Sprite – a surprising shake-up in the rankings.
Dr Pepper and Sprite Overtake Pepsi
Dr Pepper, once a distant competitor, overtook Pepsi for the No. 2 spot last year and now holds 8.3% of the market. The brand’s rise has been attributed to inventive flavor launches, viral popularity on platforms like TikTok, and strategic partnerships that have broadened its appeal across generations.
Even more unexpectedly, Sprite has climbed into third place with an 8.03% market share, just ahead of Pepsi’s 7.97%. Long seen as a secondary choice, Sprite has enjoyed a revival fueled by a reimagined “Obey Your Thirst” campaign, bolstered by celebrity endorsements from NBA rising star Anthony Edwards and sprinter Sha’Carri Richardson. The launch of Sprite Chill – a variant with a cooling aftertaste – was a breakout success, raking in $100 million in sales last year.
What’s Fueling Pepsi’s Decline?
Despite efforts to modernize its image and introduce zero-sugar alternatives, regular Pepsi appears to be losing resonance with consumers. Industry analysts suggest younger buyers are gravitating toward drinks that feel lighter, more innovative, or culturally relevant.
While Pepsi still ranks as the No. 2 soda brand family overall – when counting its Diet and Zero Sugar varieties – the core product’s performance tells a different story.
In response, Pepsi has relaunched its iconic Pepsi Challenge with pop-up taste tests, and reported 8% growth in Wild Cherry Pepsi sales. However, its flagship drink continues to slip in popularity.
As trends evolve and consumer preferences shift, Pepsi’s slide off the top three spot underscores the competitive pressures reshaping the U.S. beverage market – where nostalgia alone may no longer be enough to stay on top.
