Coca-Cola and Pepsi are currently experiencing boycotts in Muslim-majority countries as a result of the Israel-Gaza conflict

As a result of the Israel-Gaza conflict, Coca-Cola and Pepsi are currently experiencing boycotts in Muslim-majority countries, which has resulted in a decline in sales and a resurgence of local brands.

Two of the world’s largest beverage companies, PepsiCo and Coca-Cola, are encountering an increasing challenge in Muslim-majority countries as a result of consumer boycotts.

The ongoing Israel-Gaza conflict has been the catalyst for the boycotts, which have resulted in a substantial decrease in sales for both corporations in countries such as Bangladesh, Pakistan, and Egypt.

“We will overcome it gradually,” stated Ramon Laguarta, CEO of PepsiCo. “At this time, it is not significant to our top line or bottom line…”

Many consumers have chosen to boycott American brands as part of a broader movement to protest US support for Israel.

“By refraining from contributing to those funds, one can participate in the boycott,” stated Sunbal Hassan, a Pakistani corporate executive who excluded Coke and Pepsi from her wedding menu.

According to Laguarta, “The political perception is influencing the decisions of certain consumers to make alternative purchases.” “We will be able to overcome it with time.”

Local brands, including V7 in Egypt and Cola Next in Pakistan, are on the rise in popularity. Some consumers are opting to support domestic products over international brands that are perceived as symbols of America and, thus, Israel.

Zahi Khouri, the founder of National Beverage Company, which distributes Coke in the West Bank, stated that the situation could only be stabilized by terminating the occupation. “While boycotts are a matter of personal preference, they do not significantly assist Palestinians.”

In the long term, it will be more difficult to regain your trust if you abandon habits, according to Paul Musgrave, an associate professor of government at Georgetown University in Qatar.

Both Coca-Cola and PepsiCo have declared that they do not provide financial support for military operations in Israel or any other country.

In spite of this, their businesses in the region continue to be impacted by the boycotts. According to NielsenIQ, a market research firm, Western beverage brands experienced a 7% decrease in sales throughout the Middle East during the first half of the year.

According to GlobalData, Coca-Cola’s market share in Pakistan has decreased from 6.3% in 2022 to 5.7% as a result of the boycotts, which are being observed throughout the region.

In the same period, Pepsi’s market share decreased from 10.8% to 10.4%.

According to Musgrave, “Any action you can take to establish yourself as a presence or ally within a community is beneficial.”

Both companies are dedicated to the region, despite the obstacles they face. Coke invested an additional $22 million in Pakistan in April, and PepsiCo reintroduced its Teem soda brand in the country with a “Made in Pakistan” brand.

“Coca-Cola’s bottler in Pakistan maintains an optimistic outlook regarding the opportunity.” “We have made a long-term investment in the market.”

The boycotts illuminate the intricate relationship between geopolitical tensions and consumer choice.

It was unclear how the ongoing conflict in Gaza would impact the businesses of PepsiCo and Coca-Cola in the region.