Islamabad (Business Emerge), September 4: In the wake of ongoing conflict in Gaza, international soft drink giants like Coca-Cola and PepsiCo are facing a significant shift in consumer preferences across Muslim-majority nations, leading to a surge in demand for local soda brands. Countries such as Egypt, Pakistan, and Bangladesh are witnessing a growing trend where consumers are turning away from Western beverages, viewing them as symbols of American influence, and by extension, Israeli support.
This movement is particularly evident in Egypt, where Coca-Cola’s sales have seen a dramatic decline this year. In contrast, the local soda brand V7 has thrived, tripling its exports across the Middle East and beyond compared to the previous year. Similarly, in Bangladesh, the pressure from the boycott led Coca-Cola to abruptly cancel a planned advertising campaign.
In Pakistan, the boycott has also gained momentum, significantly impacting the market share of international brands. Krave Mart, a prominent delivery service, reported a sharp rise in popularity for domestic sodas such as Cola Next and Pakola. These brands now account for approximately 12% of the soft drink market, a notable increase from just 2.5% prior to the boycott, according to Krave Mart’s founder, Kassim Shroff. The preference for local flavors, like Pakola’s unique ice-cream soda, is reshaping the beverage landscape in the region.
The impact of this consumer shift was also felt on a personal level. Pakistani corporate executive Sunbal Hassan consciously excluded Coke and Pepsi from her wedding menu in Karachi earlier this year, opting instead for the local favorite, Cola Next. Her decision stemmed from a desire to avoid financially contributing to U.S. companies, which she believes indirectly support Israel, a key U.S. ally.
While it is challenging to quantify the exact financial toll on these global beverage corporations, market analysts note a 7% decline in sales of Western soft drinks across the Middle East during the first half of the year. Despite the ongoing challenges, Coca-Cola and PepsiCo still maintain a presence in several countries in the region, though the rising popularity of local competitors continues to reshape the market.