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) | $294.5 billion | 2.94% | Beverages |
| PepsiCo (NASDAQ:PEP) | $210.1 billion | 3.62% | Beverages |
| Monster Beverage (NASDAQ:MNST) | $68.1 billion | 0.00% | Beverages |
| Celsius (NASDAQ:CELH) | $16.6 billion | 0.00% | Beverages |
| Boston Beer (NYSE:SAM) | $2.4 billion | 0.00% | Beverages |
| Vita Coco (NASDAQ:COCO) | $2.4 billion | 0.00% | Beverages |
| Diageo Plc (NYSE:DEO) | $54.5 billion | 4.22% | Beverages |
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
NYSE: KO
Key Data Points
Coca-Cola (KO +4.06%) 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
NASDAQ: PEP
Key Data Points
Coca-Cola's chief rival, PepsiCo (PEP -0.30%), 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
NASDAQ: MNST
Key Data Points
Believe it or not, Monster Beverage (MNST -1.28%) 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
NASDAQ: CELH
Key Data Points
5. Boston Beer
NYSE: SAM
Key Data Points
6. Vita Coco
NASDAQ: COCO
Key Data Points
7. Diageo
NYSE: DEO
Key Data Points
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 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.
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.
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