With the demand for beverages typically inelastic, the sector is relatively resistant to economic downturns. Therefore, amid fears of an impending recession, it could be worth buying fundamentally strong beverage stocks Coca-Cola Europacific Partners PLC (CCEP), Carlsberg A/S (CABGY), and Coca-Cola HBC AG (CCHGY) with solid momentum.
While the beverage industry consists of established brands, it is challenging for new competitors to enter the market. This helps existing companies maintain their profits. Moreover, an increase in promotional and advertisement strategies by various beverage manufacturers is expected to drive the market’s growth.
