It's hard not to love an industry that's both timeless and recession-proof, and that's exactly what you get with beverage stocks. Whether it's coffee, tea, soda, or beer, people have been paying to slake their thirst for centuries, and the industry's reliability has helped create some of the world's most valuable brands.
Even better, the industry tends to offer high-profit margins thanks to high barriers to entry. In the beverage sector, large brands and global distribution networks dominate. Keep reading to learn more about the top beverage stocks in 2025.
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Coca-Cola (NYSE:KO) | $291 billion | 2.98% | Beverages |
| PepsiCo (NASDAQ:PEP) | $207 billion | 3.67% | Beverages |
| Monster Beverage (NASDAQ:MNST) | $66 billion | 0.00% | Beverages |
| Celsius (NASDAQ:CELH) | $16 billion | 0.00% | Beverages |
| Boston Beer (NYSE:SAM) | $2 billion | 0.00% | Beverages |
| Vita Coco (NASDAQ:COCO) | $2 billion | 0.00% | Beverages |
| Diageo Plc (NYSE:DEO) | $53 billion | 1.71% | Beverages |
Beverage stocks
Beverage stocks to watch in 2025
Beverage companies fall into the larger category of consumer staples or consumer packaged goods -- products that people keep buying regardless of the state of the broader economy. These companies sell bottled and canned drinks in a wide range of locations, including supermarkets, convenience stores, restaurants, and bars.
1. Coca-Cola
Coca-Cola (KO -0.7%) is the world's largest beverage brand, but the company is much more than just its namesake drink. It owns many brands, including Minute Maid juice, sports drinks such as Powerade, and a stake in Monster Beverage.
In recent years, the company has stepped up its efforts to diversify, acquiring Costa Coffee for $5 billion in 2019. After COVID-19 pandemic-induced volatility, Coca-Cola has stabilized and continues to deliver steady growth, passing along price increases and benefiting from an unmatched distribution network and marketing power.
For 2024, it reported organic non-GAAP (adjusted) revenue growth of 12%, benefiting from a number of markets experiencing high inflation. It also posted currency-neutral earnings per share (EPS) growth of 16. Those are outstanding numbers for a mature business like Coca-Cola, but investors should expect them to moderate as inflation cools.
2. PepsiCo
Coca-Cola's chief rival, PepsiCo (PEP -0.24%), has the benefit of being diversified into food and snacks. In addition to its ownership of beverage brands such as Pepsi, Mountain Dew, and Gatorade, it also owns the Frito-Lay snack brand and Quaker Foods.
Snack food sales have outperformed soda sales in recent years, giving Pepsi an advantage over pure-play soda companies like Coke. Quaker has also given the company additional exposure to the supermarket channel.
However, a recall of dozens of Quaker granola products weighed on the 2024 results, and the company also faced business disruptions and other geopolitical tensions. As a result, revenue growth was underwhelming in 2024, but its cost controls helped drive core constant-currency EPS up 9% for the year.
There are also fears that weight-loss drugs like Ozempic could hurt junk-food purveyors like PepsiCo, but CEO Ramon Laguarta has said they aren't having an effect so far.
3. Monster Beverage
Believe it or not, Monster Beverage (MNST 0.06%) has been one of the best-performing stocks on the market since its 1992 initial public offering (IPO) and is up more than 200,000% since then. What was once a tiny beverage company called Hansen Natural struck gold in the 1990s when it acquired the Monster brand, which followed in Red Bull's footsteps to become the No. 2 energy drink in the U.S.
The company remains a high-margin winner today, having ridden the energy drink boom and spun that brand into multiple flavors and subtypes. While there are signs that growth in the energy drink market is finally starting to slow, the company should continue to enjoy leading market share thanks to its partnership with Coca-Cola, widespread distribution, and well-known brand.
4. Celsius Holdings
The latest buzzy energy drink maker to capture investor attention is Celsius Holdings (CELH 1.81%). The stock jumped more than 5,000% from 2020 to its peak in 2024, but has fallen since then on concerns about slowing growth and a pricey valuation.
The company, which has a reputation as a healthier energy drink maker, partnered with Pepsi, which took an 8.5% stake in the energy drink brand. However, Pepsi ordered too much inventory, leading to a slowdown in sales for Celsius in 2024 as it corrected for that and "optimized" its supply chain. Since then, its growth has started to recover, driven by its acquisition of Alani Nu, a female-focused energy drink and wellness brand.
Celsius brand returned to revenue growth in the second quarter of 2025, up 9%, but its days of triple-digit revenue growth or anything close are almost certainly over.
5. Boston Beer
Sam Adams' parent company, Boston Beer (SAM 0.35%), was an early pioneer of craft beer, differentiating itself from macro-brewers like Anheuser-Busch. However, the company has lost some of that differentiation as microbreweries have boomed, and it's looked elsewhere for growth.
The Truly Hard Seltzer brand looked promising when sales of hard seltzer were soaring during the pandemic. However, the category has since faded.
Other malt beverages, like Twisted Tea and Hard Mountain Dew, have been successful for the company more recently. The company has also sought to expand through acquisition, though its purchase of Dogfish Head, a craft beer brand, was a misstep that led to a write-down.
Revenue was flat in 2024, but Boston Beer continues to see opportunities in the Beyond Beer category, meaning brands like Twisted Tea and Hard Mountain Dew.
6. Vita Coco
Coconut water is one of the newest beverage categories, and Vita Coco (COCO 2.25%) has jumped on the trend as the only pure-play coconut water stock on the market. Coconut water is seeing strong growth as a category because it is healthy and natural, giving it an advantage over alternative beverages like energy drinks, sports drinks, and sodas.
Sales growth has slowed from an initial jump following its IPO in 2021, but it has reaccelerated in 2025 as it recovers from earlier shortages due to the strength in the Vita Coco brand sales. The company also sells unbranded, private-label coconut water to some retail chains.
If you're bullish on coconut water -- and there are many reasons the category could keep growing -- Vita Coco looks like a no-brainer stock to own.
7. Diageo
If you're looking for portfolio exposure to liquor, it's hard to make a better choice than Diageo (DEO 0.35%). The company owns the brands Johnnie Walker, Crown Royal, Smirnoff, Baileys, and Captain Morgan.
Like other alcohol stocks, growth has been sluggish of late as it competes in a mature industry, and there has been a variety of headwinds on the industry. Organic net sales were up 1.7% in the year ended June 2025.
Diageo has long been a profit machine thanks to a strong portfolio of loyalty-inspiring brands in a difficult-to-enter industry. It reported an operating margin of 28% in fiscal 2025, and it should remain a cash-flow machine even if growth remains sluggish.
How to invest in beverage stocks
How to invest in beverage stocks
If you're looking to invest in beverage stocks, it's simple to do. Just follow the list below.
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Trends
Trends in the beverage industry
The beverage industry is essentially separated into two categories: soft drinks and hard drinks.
Soft drinks
For over a decade, soft drink sales have been characterized by the broad decline of soda, especially diet drinks. Companies like Coca-Cola and Pepsi have looked to alternatives, such as energy drinks, sparkling water, and coconut water, to make up for declining soda sales while leveraging their marketing abilities and distribution networks.
The size of the largest companies, including Keurig Dr. Pepper (KDP 0.9%), and their acquisition strategies make it difficult for small brands to emerge since they are more likely to be acquired by an industry leader.
Hard drinks
Demand for alcoholic beverages in the beer industry has been shifting from macrobrews like Budweiser to microbrews and craft beers, encouraging the same kind of diversification in hard drinks that we've seen in soft drinks.
The sudden rise of hard seltzer has also disrupted the industry, leading a number of industry leaders to launch their own brands. However, that may have turned the product into a fad, and sales have faded. Boston Beer has found success with malt beverages, while giants such as Anheuser-Busch/InBev (BUD 0.07%) have begun acquiring smaller craft beer brands.
Hard liquor, meanwhile, has been taking market share from wine and beer over the past decade, with whiskey and tequila among the winners in the category. Craft brands are being pursued and acquired by liquor companies, too.
Related investing topics
Should I invest?
Are beverage stocks right for you?
Beverage stocks might not fit with every kind of portfolio, but there's a good chance that most investors can find a beverage stock that works for them.
Here are a few reasons beverage stocks might be right for you:
- Most beverage stocks pay dividends. Some are even Dividend Kings, having raised their dividends for at least 50 years straight.
- The industry tends to be recession-proof.
- Established beverage companies have substantial competitive advantages due to their distribution networks, marketing power, and their ability to make acquisitions. These companies tend to have wide operating margins as well.
- Because of new beverage categories like energy drinks and coconut water, the sector also offers a number of appealing growth stocks.
- The industry lends itself to brand advantages.
- Overall, the industry offers a rewarding combination of safety, income, and reliability.
FAQ
FAQ: Beverage stocks
Which is the fastest-growing beverage company in the world?
Until recently, Celsius Holdings was one of the fastest-growing beverage companies in the world with revenue growth above 100% for several quarters.
According to some reports, PRIME Hydration, a privately held energy drink company, is also growing rapidly, though it also appears at risk of being a fad due to its influencer-driven marketing and concerns about its impact on health.
What are the top publicly traded beverage companies?
Over the history of the industry, Coca-Cola and PepsiCo have been the top publicly traded beverage companies.
More recently, companies like Monster Energy and Celsius have been top performers.
What are the most undervalued beverage stocks?
Valuation is a subjective judgment in the stock market, but one sleeper stock in the industry could be Vita Coco, the biggest seller of coconut water in the U.S.
Another fast-growing beverage stock worth considering is the coffee chain Dutch Bros.
Are beverage stocks a good buy now?
Beverage stocks tend to be more resilient in recessionary environments, as consumers tend to buy them regardless of the state of the economy. They're more likely to outperform in such an environment.
With stocks at all-time highs, beverage stocks could outperform if the broad market pulls back.
What are the beverage stocks with the highest dividends?
In the U.S., PepsiCo had the highest dividend in the beverage industry at 3.7% as of August 2025.
