PepsiCo reported a robust 4% organic revenue growth in its international convenient foods business, with India playing a key role in driving the snacks segment during the second quarter of 2025, the company announced in its earnings statement. However, its International Beverages Franchise (IBF) faced a decline in India, primarily due to unseasonal rains and a shorter summer season, which dampened demand during the peak beverage sales period.
The snacks business, encompassing brands such as Lay’s, Kurkure, and Doritos, saw a 5% unit volume growth in the Asia Pacific foods division, with India, Thailand, Australia, and China leading the charge. “Our international convenient foods business delivered strong performance in markets including India,” PepsiCo stated, highlighting gains in market share for savory snacks across key regions, including India, China, and Brazil. In contrast, the IBF, which handles bottling and distribution of PepsiCo’s beverage brands outside North America, saw a 1% unit volume growth globally, but a decline in India offset gains in the Middle East, China, and Pakistan.
Despite beverage challenges, PepsiCo’s overall net revenue rose 1% to $22.72 billion in Q2, buoyed by its international business. The company noted that brand Pepsi gained market share in India and other large markets like China and Mexico, driven by its focus on low- and no-sugar offerings, which now account for nearly 60% of Pepsi’s volume mix in key markets. For the first half of 2025, PepsiCo’s beverage unit volume grew 2%, with India contributing to the uptick alongside the Middle East and Mexico.
Looking ahead, PepsiCo remains optimistic about its India operations, identified as one of its 13 “anchor markets” expected to drive over 85% of future growth. The company is investing heavily in snacks, with plans to expand manufacturing capacity in Uttar Pradesh, Punjab, Maharashtra, and a new facility in Assam. “We expect our business to remain resilient for the balance of the year, led by our international business,” PepsiCo said in its 2025 outlook.