Coca-Cola Outshines Procter & Gamble in 2025’s Tough Consumer Staples Market
The consumer staples sector struggled in 2025, with Procter & Gamble facing a sharp decline while Coca-Cola posted gains. Both companies, known for their long dividend growth records, now trade below historical valuations. Investors are watching closely as the two giants prepare for 2026 with differing growth forecasts.
In 2025, Coca-Cola outperformed Procter & Gamble by a wide margin. The beverage company’s shares rose by 12.3%, while Procter & Gamble dropped by 14.5%. This gap came despite Procter & Gamble’s reputation for strong margins, driven by its global scale and premium brand lineup.
The broader consumer staples sector also underperformed, falling 1.2% as the S&P 500 surged 16.4%. Both firms, however, remain Dividend Kings—Coca-Cola with 63 years of consecutive dividend increases and Procter & Gamble with 69.
Coca-Cola’s success in 2025 stemmed from its pricing power and streamlined brand focus. Its flagship product alone makes up 42% of U.S. sales and 48% internationally. The company’s bottling partnerships further bolster margins and operational efficiency.
Procter & Gamble, meanwhile, reported just 2% organic sales growth for fiscal 2025. Its guidance for 2026 suggests a modest 0% to 4% increase, lagging behind Coca-Cola’s 5% to 6% projected growth. Despite this, both stocks are seen as attractive for income investors, though specific pricing comparisons remain unclear.
Heading into 2026, Coca-Cola’s growth outlook surpasses Procter & Gamble’s, though both remain key picks for dividend investors. Their valuations sit below historical averages, offering potential entry points. For those seeking higher yields, alternatives like UPS—with a dividend yield above 6%—may also stand out.
