Consumers of Coca-Cola and Pepsi seem to be losing their fizz.

Last Wednesday, Coca-Cola reported earnings that beat expectations on both the top and bottom lines.

Organic revenue grew 9%, but global unit case volume dropped 1%, driven by weaker demand in China, Mexico, and Türkiye.

North America saw flat volume growth. How did sales rise despite declining volume?

Price increases. Coca-Cola raised prices by 10%, helping boost revenue.

That said, Coke’s CEO James Quincy said consumers are “exhibiting value-seeking behavior, such as looking for combo deals or opting for smaller packages. At the same time, premium brands like Fairlife and Coca-Cola Zero sugar continue to perform well.”

Pepsi is facing similar challenges.

In its Q3 report from earlier in October, PepsiCo saw organic revenue grow just 1%, while beverage volume fell 2% across all regions.

Here’s an interesting fact: while Coca-Cola may be more recognizable, PepsiCo, Pepsi’s parent company, generates double Coke’s revenue.

PepsiCo’s diversified portfolio, which includes popular snacks like Lay’s and Doritos, alongside beverages, drives its larger scale.