North America Lifts Coca-Cola's Volume: Can Global Momentum Catch Up?

The Coca-Cola Company KO delivered a resilient third-quarter 2025 performance, with North America emerging as a bright spot in an otherwise mixed global landscape. Despite pressure on lower and middle-income consumers and softer traffic across channels, the region saw sequential improvement in volumes for the second consecutive quarter.

Volume was flat overall but strengthened from the first half of 2025, while value share gains and strong revenue growth underscored the success of Coca-Cola’s portfolio strategy. The company’s focus on affordability through smaller packs and its push into premium segments like Topo Chico, smartwater and fairlife, now a $1-billion brand, helped strike a balance between value and premiumization.

Globally, momentum was uneven. Latin America and the Asia Pacific faced macroeconomic and weather-related headwinds, particularly in Mexico, India and parts of ASEAN. However, Coca-Cola continued to gain value share in most markets and held or expanded share across all geographic segments. In Europe, consumer polarization echoed North American trends, with premium consumers maintaining spending even as lower-income households tightened budgets.

Coca-Cola’s broader growth playbook, anchored in disciplined pricing, marketing transformation and innovation, continued to pay off. The company reported 6% organic revenue growth and 6% comparable EPS growth despite currency pressures. Nonetheless, management acknowledged that sustaining volume gains globally will depend on sharper local execution, affordability initiatives and refranchising benefits in markets like India and Africa.

As Coca-Cola’s North American business regains momentum, the challenge ahead is clear: turning regional resilience into a more synchronized global growth story.

How Are KO’s Rivals PEP & MNST Faring in North America?

PepsiCo, Inc. PEP and Monster Beverage Corporation MNST, Coca-Cola’s key rivals in the North American beverage arena, are charting distinct paths as shifting consumer spending, pricing strategies and category dynamics reshape the competitive landscape.

PepsiCo saw North America drive its third-quarter 2025 rebound, with beverage volumes improving and flagship brands like Pepsi Zero Sugar, Mountain Dew and poppi fueling growth. PBNA delivered 2% organic revenue growth, supported by innovation and strong hydration sales from Propel. While international markets grew steadily despite weather disruptions, the key question remains whether PepsiCo can extend this renewed North American strength into broader global momentum.

North America once again powered Monster Beverage’s solid second-quarter 2025 performance, as strong demand for the Ultra family and new flavor innovations drove double-digit growth. The United States and Canada led with resilient category momentum, supported by effective pricing and a loyal consumer base. However, global markets, while improving, still trail the pace. With EMEA and APAC showing healthy expansion, the question remains whether international markets can match North America’s robust volume trajectory.

The Zacks Rundown for Coca-Cola

KO shares have risen 12.4% year to date compared with the industry’s growth of 7.1%.

From a valuation standpoint, Coca-Cola trades at a forward price-to-earnings ratio of 22.07X, significantly higher than the industry’s 18.36X.

The Zacks Consensus Estimate for KO’s 2025 and 2026 earnings implies year-over-year growth of 3.1% and 8.2%, respectively. Earnings estimates for 2025 have been unchanged in the past 30 days, while estimates for 2026 have been southbound.

Coca-Cola currently carries a Zacks Rank #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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