The ongoing boycott of global giants Coca-Cola and PepsiCo over their perceived association with American policies in the Israel-Palestine conflict has significantly boosted local soda brands across Muslim-majority countries like Pakistan and Egypt.
In Pakistan, local cola brands such as Cola Next and Pakola have seen their market share surge. Before the boycott, these local brands held around 2.5% of the market, but that figure has now climbed to 12%, according to Krave Mart, a major delivery platform.
Sunbal Hassan, a corporate executive, chose not to serve Coke or Pepsi at her wedding in Karachi, citing concerns over indirectly contributing to US funds. Instead, she opted for Cola Next, a rising Pakistani brand. This sentiment is shared by many in the region, as evidenced by a 7% sales decline for Western beverage brands in the Middle East during the first half of 2024.
PepsiCo’s CEO acknowledged the impact of the boycotts in regions such as Lebanon, Pakistan, and Egypt but stated that it hasn’t significantly affected the company’s overall revenue. PepsiCo generated $6 billion from its Africa, Middle East, and South Asia division in 2023, while Coca-Cola reported $8 billion in revenue from its Europe, Middle East, and Africa region.
Despite the boycott’s growing influence, Coca-Cola and PepsiCo maintain that neither company supports any military actions. Nonetheless, the ongoing conflict and boycotts have reshaped the beverage market in several regions, with local brands gaining a foothold.
