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.
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
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NASDAQ: PEP
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3. Monster Beverage
4. Celsius Holdings
NASDAQ: CELH
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5. Boston Beer
NYSE: SAM
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6. Vita Coco
NASDAQ: COCO
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7. Diageo
NYSE: DEO
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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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