Coca-Cola and PepsiCo are experiencing significant sales declines in Muslim-majority countries due to consumer boycotts linked to political tensions and perceptions of their associations with the U.S. and Israel. In Egypt, Coca-Cola’s sales have plummeted, while local brand V7 has seen its exports triple. Similarly, in Pakistan, local brands like Cola Next and Pakola have gained popularity, with Cola Next’s market share rising from 2.5% to 12% amid the boycott.
The backlash follows the Gaza conflict and widespread criticism of U.S. support for Israel. Market researcher NielsenIQ reports a 7% drop in sales for Western beverage brands in the region during the first half of the year. In Bangladesh, Coca-Cola faced backlash over an ad campaign, leading to its cancellation and apology.
Despite these challenges, both companies remain committed to the region. Coca-Cola invested $22 million in Pakistan recently, and PepsiCo reintroduced a locally branded soda. Analysts suggest that while boycotts impact short-term sales, long-term brand loyalty and community engagement are crucial for maintaining market presence.
