Dr Pepper ranks higher than Pepsi as the second largest soft drink brand.
Dr Pepper surpassed Pepsi to become the second most popular soda brand in the United States in 2023, according to Beverage Digest, a trade publication. While Coke still leads with a significant margin, capturing 19.2% of the market, Dr Pepper and Pepsi tied with 8.3%. Other Coca-Cola branded beverages trailed closely behind, with Sprite at 8.1% and Diet Coke at 7.8%.
Duane Stanford, editor of Beverage Digest, explained in an interview with CNN that Dr Pepper has been steadily gaining ground while Pepsi has been losing ground. He added that these two brands are meeting in the middle.
Dr Pepper, founded in 1885 in Waco, Texas, is known for its distinct peppery flavor, often touting its blend of 23 flavors. In the past, it focused on its identity as a spicy alternative to cola and took advantage of emerging trends. As a regional favorite for many years, it started marketing itself to a broader audience in the 1970s.
Now, the brand is experimenting with new flavors. In 2022, Dr Pepper Strawberries & Cream was launched and was a massive success, according to Tim Cofer, CEO of Dr Pepper's parent company Keurig Dr Pepper. It also rolled out limited-time flavors such as Dr Pepper Creamy Coconut, which was inspired by the "dirty soda" trend on TikTok (mixing soda with milk or cream and other flavors).
Interestingly, Dr Pepper doesn't need to create too many new flavors to stay relevant. "Swicy," or sweet and spicy, items are currently taking over the food and beverage market. Coca-Cola even joined the bandwagon with the release of Coca-Cola Spiced, a permanent addition to their flavor list.
However, it seems that Pepsi might have been too focused on their wider range of food products. Unlike Coca-Cola and Keurig Dr Pepper, Pepsico's expansive portfolio includes brands like Quaker and Frito-Lay. When it comes to beverages, Stanford observed that Pepsi seems more interested in promoting their zero-sugar lines instead of the classic Pepsi brand.
"Pepsi is leading with that now," Stanford concluded.
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Dr Pepper's success in the soft drink market has also led to increased business opportunities for Keurig Dr Pepper, its parent company. The success of new flavors like Dr Pepper Strawberries & Cream and the "dirty soda" trend-inspired Dr Pepper Creamy Coconut has significantly boosted their sales.
On the other hand, Pepsi's focus on promoting zero-sugar lines instead of the classic Pepsi brand might have negatively impacted their position in the soft drink market, affecting their overall business.
