What's Driving Coca-Cola's Broad-Based Global Volume Growth?
The Coca-Cola Company’s KO broad-based global volume growth is being supported by stronger execution across markets, portfolio breadth, innovation and disciplined revenue growth management. In the second quarter of 2026, the unit case volume increased 5%, with growth across operating units and nearly all beverage categories.
Management noted that favorable weather in certain markets, easier year-ago comparisons and the FIFA World Cup activation also contributed to the quarterly performance. On a two-year basis, volume growth was 2%, suggesting that the underlying trend remains more moderate than the headline quarterly increase.
Regionally, momentum was widespread. North America volume increased 3%, helped by growth across Trademark Coca-Cola, fairlife, Powerade, FRESCA, Gold Peak, smartwater and Simply. Latin America gained both value and volume share, while EMEA posted unit case volume growth across every operating unit. The Asia Pacific also delivered volume growth across all operating units and nearly all beverage categories, supported by investments aimed at expanding the consumer base.
Coca-Cola’s consumer-centric approach is another key driver. The company is using revenue growth management to balance affordability and premiumization, tailoring package sizes, brands and price points to different occasions.
FIFA World Cup activation added momentum, contributing to 5% Trademark Coca-Cola volume growth and 8% Powerade growth globally. Innovation, including the Mr. Pibb relaunch and Sprite and Tea, is also helping broaden demand. Management emphasized that the World Cup was only one factor, with the broader improvement reflecting stronger capabilities across more markets, brands and categories.
Volume Growth for Peers: PEP & KDP
Among Coca-Cola’s key beverage peers, PepsiCo Inc. PEP and Keurig Dr Pepper Inc. KDP are also navigating a mixed demand environment, with volume trends shaped by category exposure, consumer spending patterns and brand-level execution.
PepsiCo’s global volume growth is being fueled by strong international demand, portfolio innovation and wider consumer choice. In the second quarter, global convenient foods organic volume rose 3%, while global beverages increased 2%. International Beverage Franchise volume climbed 5%, supported by strength across several emerging markets. PepsiCo is also expanding functional, zero-sugar and permissible offerings, while sharpening affordability and price-pack architecture to reach more consumers.
Keurig Dr Pepper’s volume growth is being driven largely by strength in U.S. Refreshment Beverages and international markets. U.S. Refreshment Beverages posted 6.5% volume-mix growth, led by carbonated soft drinks, energy, water and sports hydration, with Dr Pepper Zero Sugar, Bloom, GHOST and Electrolit contributing. International volume mix also rose 6.5% year over year, supported by improving trends in Mexico and broad-based beverage growth in Canada.
Zacks Rundown for Coca-Cola
KO shares have rallied 32.9% in the past year compared with the industry’s 19.3% growth.
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From a valuation standpoint, Coca-Cola is trading at a forward price-to-earnings ratio of 25.34X, higher than the industry’s 18.95X.
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The Zacks Consensus Estimate for KO’s 2026 and 2027 earnings implies year-over-year growth of 9.7% and 7.1%, respectively. Earnings estimates for 2026 have been unchanged in the past 30 days, while earnings estimates for 2027 have moved up by a penny in the past 30 days.
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Coca-Cola currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
