How Popular Soda Brands Lost Ground While Maintaining Market Dominance in 2018

The U.S. beverage market witnessed a dramatic shift in 2018, despite the enduring strength of established popular soda brands. The soft drink industry has contracted annually since 2004, with current sales volumes returning to 1980s levels. This sustained decline reflects changing consumer preferences, as bottled water, coffee beverages, energy drinks, sports drinks, and emerging options like kombucha and coconut water have gradually captured market attention away from traditional carbonated sodas.

Major corporations in the space—Coca-Cola (NYSE: KO), PepsiCo (NASDAQ: PEP), and Keurig Dr Pepper—have responded strategically by diversifying their portfolios through acquisitions. PepsiCo acquired SodaStream to enter the DIY sparkling water segment, while Coca-Cola purchased Costa Coffee to strengthen its coffee presence. These moves underscore how even the most popular soda brands must evolve beyond their core carbonated products.

Market Dominance: The Leading Brands of 2018

Despite industry headwinds, several brands maintained commanding positions. While complete 2018 data remains unavailable, market trends and historical patterns reveal which sodas captured the largest consumer base.

Coca-Cola: The Unchallenged Leader

Coca-Cola’s status as the world’s most recognizable soft drink remained unshaken in 2018. The brand’s competitive advantages—an unparalleled distribution network, massive marketing investment, and strategic partnerships with chains like McDonald’s—solidified its position as the most entrenched beverage globally.

The company reported 1% unit case volume growth in North America during its latest reported quarter, suggesting that the brand’s long-term consumption decline may finally be stabilizing. Following modest 0.1% volume growth in 2017, this trajectory indicates potential recovery. According to Nielsen data, Coca-Cola commanded approximately 18% of the soda market, with dollar sales rising 2% year-over-year. These metrics underscore why popular soda brands like Coca-Cola maintain combined market valuations exceeding $350 billion.

Pepsi: Reclaiming Second Place

Pepsi surpassed Diet Coke to secure the number two ranking, a position it has reinforced since 2014. The resurgence of full-sugar sodas, driven by declining consumer interest in artificial sweeteners, benefited the brand as health-conscious shoppers increasingly avoided diet alternatives.

However, challenges emerged in 2018. PepsiCo’s North American beverages segment—encompassing Pepsi, Gatorade, and Mountain Dew—experienced a 1% volume decline in the first three quarters. Adding to competitive pressure, Pepsi lost a significant foodservice contract when Coca-Cola became the preferred supplier at thousands of Arby’s locations.

Diet Coke: A Surprising Turnaround

Defying expectations, Diet Coke spearheaded a diet soda renaissance in 2018. Dollar sales jumped 4.6%, reversing years of continuous decline. The catalyst: a portfolio refresh introducing four new flavors—Ginger Lime, Feisty Cherry, Zesty Blood Orange, and Twisted Mango—in early 2018. Encouraged by consumer response, Coca-Cola subsequently launched Strawberry Guava and Blueberry Acai variants.

This innovation strategy yielded immediate results. Diet Coke achieved its first volume growth quarter in North America since 2010 in Q1 2018. Coca-Cola Zero Sugar also thrived, posting 10.7% sales growth, indicating that consumers were gradually reconsidering diet sodas under the Coca-Cola umbrella.

Mountain Dew: Regional Strength Sustains Ranking

Mountain Dew, acquired by PepsiCo in 1964, maintained its fourth-place position with a steady 6-7% market share throughout the decade. The brand’s success stems from loyal regional fanbases, particularly in Appalachia and across the South and Midwest, where penetration significantly exceeds coastal markets.

Strategic flavor extensions—including Baja Blast, Code Red, and Kickstart—have reinforced its appeal among devoted consumers. While PepsiCo has increasingly emphasized healthier beverages and its Frito-Lay snack division, Mountain Dew’s concentrated customer base and brand loyalty have helped it resist broader industry softening more effectively than competitors.

Why These Popular Soda Brands Endure

The ranking of popular soda brands reflects both structural advantages and evolving market dynamics. Distribution reach, brand heritage, aggressive product innovation, and foodservice partnerships create formidable competitive moats. Yet even dominant players acknowledge industry realities: sustained innovation and portfolio diversification remain essential strategies for long-term relevance in an increasingly health-conscious beverage landscape.