With 19.2% market share, classic Coca-Cola dominates the soda category. Dr Pepper comes next, followed by Pepsi.
Varchasvi Singh, a foodservice analyst at market research firm Mintel, explained the sweet spot for zero-sugar formulations is creating a product that “meets consumers’ dietary aspirations without requiring them to compromise on taste or change their brand loyalties.”
Major marketing campaigns and a partnership with the NCAA’s March Madness basketball tournament have also contributed to Coca-Cola Zero Sugar’s rise.
In recent years, the Coca-Cola Company has spent more promoting its namesake beverage on national linear TV than its sugar-free option, according to television ad measurement and analytics firm iSpot.tv. Over the past 18 months, however, this arrangement has reversed, as the company has dedicated more advertising dollars to Coca-Cola Zero Sugar. During the first half of 2024, for example, Zero Sugar received $37.2 million compared to Coke’s $18.8 million.
The Coca-Cola Company did not comment in time for publication.
One factor complicating Coca-Cola Zero Sugar’s ascent has been Diet Coke’s descent. While Zero Sugar has climbed 3.8 percentage points since its debut, Diet Coke has fallen 1.9 points.
“For two decades, Coke marketers have faced the difficult job of growing a modern, no-calorie cola brand while managing the decline of an iconic, legacy diet soda with a super loyal, but dwindling, base,” said Stanford. “The trick has been to keep diet consumers in one or the other.”
The Coca-Cola Company reported $45.8 billion in global revenue for 2023, up 6% compared to 2022. By volume, its Coca-Cola brand grew 2%. Coca-Cola Zero Sugar, meanwhile, increased 5%.
