The chart above compares the marketing expenses of Coca Cola and Pepsi from 2016 to 2022. Both the beverage giants invest large sums in marketing and promotions each year. While the two had generally spent comparable sums on marketing each year until 2019, from 2020 onwards Pepsi’s marketing expenses have grown faster. In 2022, Pepsi spent $5.2 billion on marketing and promotions, while Coca Cola spent $4.32 billion.
Coca Cola and Pepsi Marketing Expenses Compared.
Coca Cola and Pepsico are the two leading brands in the soft drink industry. Both have a large product portfolio of competing products. However, due to the intense competition in the industry, both brands spend a large sum each year on advertising and promotions.
Marketing is also a source of competitive advantage in the soda industry and both brands invest heavily in marketing through several channels including online and offline channels. Both brands utilize video marketing for promotions heavily.
While Coca Cola’s expenditure on marketing has generally remained at around $4 billion during the last several years (except 2020), Pepsi’s has exceeded that of Coca Cola over the last four years. Starting fiscal 2016, Pepsi’s marketing expenditure started exceeding $4 billion while Coca Cola’s remained at $4 billion or less till 2017.
In 2016, while Coca Cola spent around $4 billion on marketing, Pepsi’s marketing costs were around $4.2 billion. Coca Cola’s marketing expenditure reduced sightly in 2017 compared to the previous year reaching $3.96 billion and then rose again in 2018 to $4.1 billion. On the other hand, Pepsi’s marketing costs also fell in 2017 compared to the previous year, reaching $4.1 billion and then rose again in fiscal 2018 to $4.2 billion.
In 2019, Coca Cola’s marketing expenses peaked at $4.25 billion but again dropped in 2020 to $2.8 billion mainly due to the impact of the pandemic.
On the other hand, Pepsi’s marketing expenditures have continued to grow in 2019 and 2020. Its marketing expenses peaked in 2019 at $4.7 billion and then dropped slihghtly to $4.6 billion in 2020.
In 2021, Pepsi’s advertising and marketing expenses have broken all the previous records rising past $5 billion. Pepsi spent $5.1 billion on advertising and marketing in 2021 compared to $4.6 billion in the previous year. Coca Cola’s advertising expenses also increased compared to 2020 but remained at around $4 billion. The soda beverages brand spent only $4.098 billion on advertising and promotions compared to Pepsi’s $5.1 billion.
The table below shows that Pepsi’s marketing expenses have remained higher than Coca Cola since 2016. The difference was the highest in 2020 at $1.8 billion.
Take a look at how Pepsi and Coca Cola’s marketing expenses compare over the last eight years in the following table.
| Year | Pepsi Marketing expenses ($Billion) | Coca Cola Marketing Expenses ($billion) |
| 2022 | $5.2 | $4.319 |
| 2021 | $5.1 | $4.098 |
| 2020 | $4.6 | $2.777 |
| 2019 | $4.7 | $4.25 |
| 2018 | $4.2 | $4.1 |
| 2017 | $4.1 | $3.96 |
| 2016 | $4.2 | $4 |
| 2015 | $3.9 | $3.98 |
| 2014 | $3.9 | $3.5 |