Pepsi Challenges Coca-Cola... The 'Lime Flavor' Zero Cola War [Flavors X-Files]

Coca-Cola Launches New ‘Zero Lemon Lime’

Goes Head-to-Head with Popular Pepsi ‘Zero Sugar Lime Flavor’

Coca-Cola’s Grip on No. 1 Spot in Korea Faces Challenge

The nation continues to face an extreme heat wave, with temperatures nearing 40 degrees Celsius. Walking under the scorching sun, one can't help but crave a refreshing sip of a cold carbonated drink to freshen up. It's easy to imagine that many consumers stop by convenience stores for just that reason. And in those moments, isn't one of the most popular choices cola, especially zero-calorie cola?

Recently, the domestic zero-calorie cola market has become the battleground for a fierce showdown between Pepsi and Coca-Cola. On August 1, Coca-Cola launched its new product, 'Coca-Cola Zero Lemon Lime', featuring a citrus twist with lemon and lime flavors. This new entry has taken on 'Pepsi Zero Sugar Lime Flavor', which debuted in 2021, in a head-on rivalry. The competition has evolved beyond the simple functionality of sugar-free beverages into a contest of flavors and taste profiles.

'Coca-Cola Zero' and 'Coca-Cola Zero Lemon Lime' products are displayed at the convenience store. Photo by Hyunjin Jung

Products such as 'Pepsi Zero Sugar Lime Flavor' are displayed at the convenience store. Photo by Hyunjin Jung

Coca-Cola and Pepsi have been engaged in the so-called 'Cola Wars' for more than 130 years. In this edition of Flavors X-Files, we explore the fierce competition between these two titans of the cola market and their zero-calorie product lines.

Coca-Cola Reigns as No. 1 Carbonated Drink in Korea... Pepsi’s Remarkable Growth

Currently, Coca-Cola is the clear leader of the carbonated beverage market in Korea. According to offline retail POS data released by the Korea Agro-Fisheries & Food Trade Corporation (aT) and Market Link on the 9th, Coca-Cola posted sales of 493.9 billion won last year, capturing a 40.1% share of the market. Pepsi came in second, with sales totaling 239.3 billion won and a market share of 19.4%. At first glance, it appears that Coca-Cola enjoys a landslide victory.

However, Pepsi’s recent growth has been striking. Over the past five years, Pepsi's retail sales have increased by more than 67%. In comparison, Coca-Cola's sales grew by only about 5% during the same period. The gap in sales between the two brands has narrowed from 326.8 billion won in 2021 to 254.5 billion won last year. In terms of market share, Coca-Cola has seen its share fall by 1.3 percentage points over the past five years, now facing the prospect of falling below 40%. Meanwhile, Pepsi has gained 6.5 percentage points and is on the verge of reaching the 20% mark.

As Pepsi’s sales have grown, Chilsung Cider, which was previously the No. 2 carbonated drink in Korea, yielded its spot to Pepsi in 2024, dropping to third place. The gap between Pepsi and Chilsung Cider also widened within just one year.

Given these changes, the share held by Korea Coca-Cola in the domestic carbonated beverage retail market slipped below 50% for the first time last year. It fell steadily from 54.0% in 2020 to 49.5% in 2025. Meanwhile, Lotte Chilsung—producer of Pepsi, Chilsung Cider, and Milkis, and the No. 2 player in the domestic carbonated beverage retail market—increased its share from 36.5% in 2020 to 42.9% last year, scaling up by more than 6 percentage points.

It is important to note that these figures only reflect sales data from five offline channels: large discount stores, convenience stores, independent supermarkets, and general food stores—excluding B2B and online sales. Nevertheless, it is clear that the intense Cola War between the two brands is creating significant shifts in Korea’s carbonated beverage market.

Strong Carbonation vs. Fruity First Impression... A Taste Test of the Rivals

Industry experts believe that the success of 'Pepsi Zero Sugar Lime Flavor', launched in 2021, played a major role in prompting these changes. According to Nielsen Korea data cited by Lotte Chilsung Beverage, sales of Pepsi zero-calorie products jumped sharply from 87.1 billion won in 2022 (the year after launch) to 135.4 billion won last year—a surge of more than 50%. As more zero-sugar products are introduced, sales of related items have increased significantly.

Lotte Chilsung Beverage has managed the Pepsi brand in Korea for 50 years under an official agreement with PepsiCo since 1976. PepsiCo controls most of the branding and supplies the cola base. What made the 'Zero Sugar Lime Flavor' variant particularly notable is that Lotte Chilsung Beverage developed it independently, sent the formula to headquarters for approval, and then launched it.

This product is praised for masking the characteristic bitter undertone of the sugar substitute commonly found in zero-calorie cola with the tartness and fragrance of lime, enhancing the drink’s refreshing carbonation. Ever since its launch, it has gained attention on social media under the nickname 'Pepjera' and has remained popular. As for its ingredients, each 355 mL serving contains zero calories, as expected for a zero product. The fruit and cola flavors are derived from artificial flavoring agents, while the sweetening comes from sugar substitutes such as aspartame, acesulfame potassium, and sucralose.

The newly released ‘Coca-Cola Zero Lemon Lime’—the direct competitor—also contains zero calories per 350 mL serving. Unlike the Pepsi product, the lemon-lime flavor is derived from natural flavorings, but the sweeteners are identical: aspartame, acesulfame potassium, and sucralose. Sodium content is about one-third of that found in 'Pepsi Zero Sugar Lime Flavor.'

I tasted both drinks. 'Pepsi Zero Sugar Lime Flavor' delivers a strong carbonation with a first note of classic cola flavor followed by a lime aftertaste, setting it apart from other zero beverages in terms of both flavor and aroma. ‘Coca-Cola Zero Lemon Lime’ has milder carbonation and, from the very first sip, fills the mouth with lemon-lime flavor. For consumers who enjoy fruity tastes, both drinks stand out as compelling alternatives alongside regular cola.

Zero Cola Competition Began Before the 21st Century... '1+1' Marketing in Full Swing

The zero-calorie cola market has grown rapidly since the 2000s. In the 21st century, as global concerns over obesity and reduced sugar consumption became major themes, cola makers found it inevitable to develop lower-sugar products. In fact, Coca-Cola and Pepsi were already developing and releasing sugar-free colas in the 1980s and 1990s.

Coca-Cola introduced 'Diet Coke' in 1982, while Pepsi followed with 'Pepsi Max' in 1993. The first 'diet' colas, however, failed to win over consumers, largely due to limitations in sweetener technology and the problematic use of 'diet' in naming. Pepsi Max, which launched outside North America in countries including the UK, Italy, and Australia, became a huge success.

Entering the 2000s, the zero-cola battle intensified in the North American market. In 2005, Coca-Cola launched its zero-calorie variant globally, using sugar substitutes like aspartame and acesulfame potassium, and branding the drink with a black package rather than the traditional red. Due to ingredient approval delays, Pepsi launched 'Pepsi Diet Max' in North America in 2007 and later, in 2016, unified its zero-calorie colas under the 'Pepsi Zero Sugar' brand.

There are currently eight types of zero-calorie cola offered by the two companies in Korea. Coca-Cola's lineup includes Zero, Zero Lemon Lime, Zero Zero, Zero Lemon, and Zero Cherry—five in total. Pepsi offers three: Zero Sugar Lime Flavor, Zero Sugar Lime Flavor Zero Caffeine, and Zero Sugar Peach Flavor. Both are engaged in fierce competition, with aggressive '1+1' (buy one, get one free) promotions at convenience stores and similar outlets. As the heat continues, it's a good time to try out the zero-calorie cola that suits your summer taste and stay refreshed.

This content was produced with the assistance of AI translation services.