PepsiCo is strengthening its focus on functional ingredients such as protein, fiber, and low-sugar formulations as part of its strategy to respond to changing consumer preferences, even as the company stresses that taste, affordability, and brand authenticity remain its top priorities.
PepsiCo Chief Commercial Officer Bryan Santee said the growing popularity of functional foods has intensified competition, making scientific credibility and product performance key differentiators in the market.
“Not all proteins are created equal,” Santee said, noting that many companies are adding functional ingredients to products, but long-term success will depend on whether those ingredients are backed by science and accepted by consumers.
PepsiCo said it is reformulating products to include cleaner labels, higher protein content, and lower sugar levels, while ensuring that flavour, texture, and appearance remain consistent with what consumers expect.
The company has recently introduced products such as protein-enriched Doritos, dye-free Cheetos, and reduced-sugar versions of Gatorade, as part of its effort to appeal to health-conscious buyers who are increasingly skeptical of highly processed foods.
According to PepsiCo executives, research and development teams are working to achieve cleaner ingredient lists without affecting the taste or visual appeal of products — a challenge that has become more complex as consumers demand natural colours, fewer additives and higher nutrient density.
PepsiCo Vice President of R&D Jenny Gusba said companies frequently encounter a gap between what consumers say they want and what they actually buy.
For example, while shoppers often prefer natural ingredients, they still expect familiar colours and flavours. In beverages such as Gatorade, consumers may choose products based on colour, forcing developers to find alternatives to artificial dyes without changing the look of the drink.
Industry executives describe this as a “say-do gap,” where purchasing decisions do not always match stated health preferences.
PepsiCo said functional ingredients and better-for-you products are central to its long-term growth strategy, along with portfolio simplification and cost control. The company has reduced some product offerings and adjusted prices in certain markets to maintain competitiveness while investing in innovation.
Alongside reformulation, PepsiCo is also expanding through acquisitions to strengthen its presence in the health-focused segment. Recent deals include the purchase of prebiotic soda brand Poppi and tortilla chip maker Siete, both of which already had strong consumer followings.
Santee said such acquisitions allow PepsiCo to scale emerging brands using its global distribution network while keeping their original identity intact.
With protein, low-sugar and clean-label claims becoming common across snacks and beverages, PepsiCo believes its scale, research capability and strong brand portfolio will help it remain competitive.
Company executives said the challenge going forward will be to deliver healthier formulations without losing the taste and affordability that built consumer loyalty — a balance that is likely to define the next phase of growth in the global snack and beverage industry.