Consumer staples pricing power in 2026 has split into two camps. Beverage makers are still growing volume: Coca-Cola (KO) reported 5% unit case volume growth and 6% organic revenue growth in the second quarter of 2026, as of July 28, 2026 [2]. Household goods makers are not: Procter and Gamble (PG) reported organic sales unchanged from a year earlier in its April to June quarter, with volume, pricing and mix all neutral, and PepsiCo (PEP) grew organic revenue only 2.4% with North American volume flat to down [1][3]. This note compares the three companies' results, separates volume from price, and looks at what the fiscal 2027 outlooks imply.
Is consumer staples pricing power in 2026 coming from volume or price?
The answer depends on the category. In 2022 and 2023 nearly all staples growth came from price increases while volumes fell. By mid-2026 the price lever is largely used up, and companies that cannot grow volume are not growing at all.
| Company | Quarter | Reported sales growth | Organic growth | Volume | Price or mix |
|---|---|---|---|---|---|
| Procter and Gamble (PG) | April to June 2026 | +2% to $21.2 billion | 0% | Neutral | Neutral [1] |
| Coca-Cola (KO) | Q2 2026 | +7% to $13.4 billion | +6% | +5% unit cases | +2% price/mix [2] |
| PepsiCo (PEP) | Q2 2026 | +6.4% to $24.18 billion | +2.4% | Flat to down in North America | Positive [3] |
Procter and Gamble: growth has stalled at the top line
P&G's fiscal 2026 fourth quarter, reported July 29, 2026, is the clearest evidence that pricing power has faded in household categories. Net sales rose 2% to $21.2 billion, but the entire increase came from foreign exchange and rounding; organic sales were unchanged, with volume, pricing and mix each contributing zero [1]. Gross margin fell 60 basis points, and core earnings per share declined 3% to $1.43 [1]. By segment, Beauty grew organic sales 4%, Grooming and Fabric and Home Care were flat, Health Care fell 1%, and Baby, Feminine and Family Care fell 2% [1].
For the full fiscal year, net sales rose 3% to $87.0 billion, made up of two points from currency and one point from higher pricing, with volume and mix unchanged; organic sales rose 1%, entirely from price [1]. Core earnings per share rose 1% to $6.89 [1]. The fiscal 2027 outlook calls for organic sales growth of 1% to 3% and core earnings per share growth of in line to 3%, with a midpoint near $7.00 [1]. That is a company guiding to low single digit growth after years of price-led gains.
Coca-Cola: volume growth restores the pricing story
Coca-Cola's second quarter, reported July 28, 2026, shows what pricing power looks like when it is backed by demand. Net revenues grew 7% to $13.4 billion and organic revenues grew 6%, driven by a 4% increase in concentrate sales and 2% growth in price and mix [2]. Unit case volume grew 5%, led by India, China, the United States and Brazil, and the price and mix gain came mainly from pricing actions, partly offset by unfavorable mix [2]. Operating margin was 34.9% versus 34.1% a year earlier, comparable operating margin was 35.6% versus 34.7%, and comparable earnings per share rose 11% to $0.97 [2].
The company raised full-year guidance to organic revenue growth of approximately 5%, from 4% to 5%, and comparable currency neutral earnings per share growth of 7% to 8%, from 6% to 7% [2]. Concentrate sales trailed unit case volume by one point because of shipment timing, so reported revenue understated underlying demand [2].
PepsiCo: international carries North America
PepsiCo sits between the two. Second-quarter net revenue rose 6.4% to $24.18 billion, but organic revenue grew only 2.4% [3]. PepsiCo Foods North America posted organic revenue down 2% with flat volume, and PepsiCo Beverages North America grew organic revenue 1% on a 2% decline in volume, meaning price is still doing the work in the US business [3]. Core earnings per share rose 4% to $2.20, and full-year guidance is for organic revenue growth of 2% to 4% and core constant currency earnings per share growth of 4% to 6% [3].
- Volume winners: Coca-Cola, with 5% unit case growth and raised guidance [2].
- Price-dependent: PepsiCo North America, where beverage volume fell 2% [3].
- Stalled: Procter and Gamble, with organic sales flat and core EPS down 3% in the quarter [1].
What the macro data says about staples demand
Consumers are still spending in nominal terms. The Census Bureau's advance estimate of US retail and food services sales for July 2026 was $763.6 billion, down 0.6% from June but up 5.0% from July 2025, and sales for May through July were up 6.3% from the same period a year earlier [4]. Nominal spending growth near 5% alongside flat staples volume suggests households are directing incremental dollars elsewhere, and that private label and value channels are absorbing some of the branded volume.
Markets still pay a premium for the group's stability. DataPorium's sector data shows NASDAQ consumer defensive stocks trading at an average price to earnings ratio of about 35.7 as of July 6, 2026, and the group rose 1.00% on average on August 10, 2026 [5]. Investors can compare staples companies by organic growth, margin and valuation on DataPorium's stock market pages.
Staples companies that can still grow volume are keeping their pricing power, while those relying on price alone have hit a ceiling, so the 2026 divide in the sector is about demand, not costs.
The economic reading is straightforward. Pricing power is a function of competition and consumer choice, and by 2026 consumers have had four years to trade down, switch brands and shop different channels. That is the market working as it should: excess price increases invite substitution, and the companies now growing are those investing in products people want more of, as Coca-Cola's innovation-led volume shows. The counterpoint is that input costs and tariffs on packaging and ingredients still pressure margins, so a company like P&G that holds price flat is absorbing cost increases, which explains the 60 basis point decline in gross margin [1].
Key takeaways
- Coca-Cola grew unit case volume 5% and organic revenue 6% in Q2 2026 and raised full-year organic growth guidance to about 5% [2].
- Procter and Gamble's organic sales were flat in its April to June 2026 quarter, with volume, price and mix all neutral, and it guided fiscal 2027 organic growth to 1% to 3% [1].
- PepsiCo's organic revenue grew 2.4%, with North American beverage volume down 2% and foods organic revenue down 2% [3].
- US retail sales rose 5.0% year over year in July 2026, so nominal demand is growing faster than staples volumes [4].
- NASDAQ consumer defensive stocks carried an average P/E near 35.7 as of July 6, 2026, per DataPorium [5].
Frequently asked questions
Do consumer staples companies still have pricing power in 2026?
Selectively. Coca-Cola added 2% from price and mix on top of 5% volume growth, but Procter and Gamble reported zero contribution from pricing in its latest quarter [1][2].
Why did Procter and Gamble's earnings fall?
Organic sales were flat and gross margin fell 60 basis points in the April to June 2026 quarter, so core earnings per share dropped 3% to $1.43 [1].
Which staples company raised guidance in 2026?
Coca-Cola raised 2026 organic revenue growth guidance to approximately 5% and comparable currency neutral EPS growth to 7% to 8% after its second quarter [2].
Are consumers cutting back on spending?
Not in total: Census data show July 2026 retail and food services sales up 5.0% from a year earlier, though staples volumes at several companies were flat [4].
Sources & References
- [1] P&G Announces Fourth Quarter and Fiscal Year 2026 Results, Exhibit 99.1 (SEC EDGAR, July 29, 2026)
- [2] Coca-Cola Reports Second Quarter 2026 Results and Raises Full Year Guidance (July 28, 2026)
- [3] PepsiCo Reports Second-Quarter 2026 Results, Exhibit 99.1 (SEC EDGAR, July 9, 2026)
- [4] U.S. Census Bureau, Advance Monthly Sales for Retail and Food Services, July 2026 (released August 14, 2026)
- [5] DataPorium Stock Market: sector performance and sector P/E data
