Muslim Countries
As consumer boycotts targeting Coca-Cola and PepsiCo escalate in response to the ongoing conflict in Gaza, local soda brands in Muslim-majority countries, including Pakistan, are experiencing a significant surge in popularity.
Coca-Cola and PepsiCo have invested heavily in building their market presence in countries like Egypt and Pakistan over the decades.
However, due to the recent backlash, both companies are facing challenges from local alternatives.
This is largely driven by consumer sentiments linking these global brands to U.S. and Israeli interests amid the Gaza conflict.
In Egypt, Coca-Cola sales have plummeted, while local brand V7 has seen a dramatic increase in exports.
Similarly, in Bangladesh, Coca-Cola had to cancel an ad campaign due to the boycott. Across the Middle East, Pepsi’s growth has stalled since the conflict intensified in October.
In Pakistan, the boycott has led to a noticeable rise in local cola brands such as Cola Next and Pakola. Krave Mart, a prominent delivery app, reported that local sodas now account for around 12% of the soft drinks market, a significant increase from 2.5% before the boycott.
Consumer boycotts are not new, but they are having a tangible effect now. Historically, such movements have impacted companies, as seen with past boycotts against brands linked to political issues.
PepsiCo and Coca-Cola, which still see growth in several regions, experienced a 7% decline in sales in the Middle East in the first half of the year.
Despite these challenges, both companies remain committed to the region. Coca-Cola has recently invested $22 million in Pakistan and continues to sponsor local events.
PepsiCo has reintroduced its Teem soda in Pakistan, emphasizing its local production.
This ongoing community engagement is crucial for maintaining their market presence amidst the current geopolitical tensions.
