Diet Soda Sales Fizzle Out, Pepsi Now Number Two In Sales

(RTTNews) - PepsiCo Inc.'s (PEP) Pepsi-Cola has replaced Coca-Cola Co.'s (KO) Diet Coke as the No. 2 soda brand in the U.S. in 2014 as diet sodas continue to lose popularity, according to an annual industry report published Thursday.

Meanwhile, overall soda consumption by Americans declined for the tenth straight year, but at a more modest pace compared to the preceding year.

According to an annual report by the industry tracker Beverage Digest, Coca-Cola's full-calorie Coke remained the most popular soda in the country last year, with a market share of 17.6 percent following a volume increase of 0.1 percent.

Meanwhile, PepsiCo's full-calorie Pepsi-Cola toppled Diet Coke to take the No.2 spot with a market share of 8.8 percent, though its volumes declined 1.8 percent.

Diet Coke fell to the third position, with a market share of 8.5 percent and a volume decline of 6.6 percent. Diet Coke had wrested the second place from Pepsi-Cola in 2010.

Overall soda consumption in the U.S. declined 0.9 percent in 2014, marking the tenth straight year of decline, as health-conscious consumers shift away from carbonated drinks to energy drinks and other alternatives. However, the decline in overall consumption was at a moderate pace compared to the 3 percent decline in the preceding year.

Sales of diet soda are continuing to fall in the U.S. More consumers are concerned about the health impact from the consumption of diet sodas, as they use artificial, zero-calorie sweeteners such as aspartame.

Recent studies have panned the use of artificial sweeteners, suggesting its consumption to be unhealthy that could lead to obesity and other health problems.

Despite the decline in soda consumption, overall volumes of all nonalcoholic beverages rose 1.7 percent in the U.S. last year, after declining 1.6 percent in 2013, according to Beverage Digest. The growth was driven by an increase in bottled water sales.