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Zacks Industry Outlook Highlights Coca-Cola, PepsiCo, Monster Beverage, Keurig Dr Pepper and Primo Brands

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For Immediate Release

Chicago, IL – March 14, 2025 – Today, Zacks Equity Research discusses The Coca-Cola Co. KO, PepsiCo Inc. PEP, Monster Beverage Corp. MNST, Keurig Dr Pepper Inc. KDP and Primo Brands Corp. PRMB.

Industry: Soft Drinks

Link: https://www.zacks.com/commentary/2429711/5-soft-drinks-stocks-showing-resilience-amid-cost-tariff-woes

The Zacks Beverages – Soft Drinks industry offers a dynamic investment landscape shaped by promising growth opportunities and persistent cost pressures. On the growth front, evolving consumer preferences for healthier, functional and sustainable beverages present companies with opportunities to expand market share. Additionally, the industry is embracing digital transformation, with brands leveraging direct-to-consumer platforms, subscription models, and data-driven personalization to enhance consumer engagement and drive new revenue streams.

However, potential investors should weigh the industry's headwinds, including rising input costs, supply-chain disruptions and tariff-related uncertainties, which have been the key hurdles. Escalating packaging expenses, freight inefficiencies and commodity price volatility could impact profitability. Leading players like The Coca-Cola Co., PepsiCo Inc., Monster Beverage Corp., Keurig Dr Pepper Inc. and Primo Brands Corp. are well-positioned to overcome these hurdles. These companies stand out as strong investment contenders in an increasingly competitive and evolving market through innovation, digital transformation and operational efficiency.

About the Industry

The Zacks Beverages - Soft Drinks industry comprises companies that manufacture, source, develop, market and sell non-alcoholic beverages. Soft drinks mainly include sparkling drinks, natural juices, enhanced water, sports and energy drinks, dairy, and RTD tea and coffee beverages. Some industry players like PepsiCo produce and sell handy food with flavored snacks, complementing their beverage portfolio.

The companies sell products through a network of wholesalers and retailers, including supermarkets, department stores, mass merchandisers, club stores and other retail outlets. Some also offer products via company-owned or controlled bottling, independent bottling partners and partner brand owners.

What's Shaping the Future of the Beverages - Soft Drinks Industry?

Shifting Consumer Preferences: The U.S. soft drinks industry is experiencing a surge in demand for healthier beverage options as consumers increasingly prioritize wellness. This shift has fueled interest in drinks made with natural ingredients, reduced sugar and functional benefits while driving demand for diverse flavors and enhanced taste experiences. Plant-based beverages, including botanical-infused drinks and non-dairy alternatives, are gaining traction among health-conscious consumers seeking sustainable choices.