PepsiCo expands diverse ingredient use as food innovation accelerates
Ingredients that combine nutrition, functionality and sustainable sourcing are becoming increasingly important.
USA – PepsiCo is significantly expanding the use of diverse and nutrient-rich ingredients across its global convenient foods portfolio, as the food and beverage giant moves to respond to changing consumer preferences while broadening the nutritional profile of its products.
According to PepsiCo’s latest ESG report, the company delivered 79 billion portions of diverse food ingredients in 2025, including whole grains, plant-based proteins, fruits and vegetables.
The figure represents more than half of PepsiCo’s target of delivering 145 billion portions annually by 2030 across its global convenient foods portfolio.
The initiative reflects a wider shift in food manufacturing, where processors are looking beyond traditional formulations and exploring a broader range of ingredients to support nutrition, functionality and product differentiation.
Whole grains, for example, are increasingly being incorporated into snacks, cereals and bakery products because of their fibre and nutritional value.
At the same time, plant-based proteins are gaining attention as manufacturers develop products designed to provide alternative protein sources.
Fruits and vegetables are also becoming more important as food companies seek to increase the nutritional diversity of packaged foods while responding to consumers looking for recognizable and naturally derived ingredients.
PepsiCo’s approach forms part of its broader pep+ (PepsiCo Positive) strategy, which seeks to integrate sustainability and nutrition into product development and the company’s wider value chain.
“Many people around the world are not eating enough nutritious food groups and hence essential nutrients,” PepsiCo said in a statement, adding that it aims to provide consumers with “an array of positive choices” through its portfolio.
Ingredient innovation drives reformulation
The emphasis on ingredient diversity comes alongside PepsiCo’s efforts to improve the nutritional composition of its convenient foods.
In 2025, the company reported that more than 75% of its convenient foods volume met its targets for sodium and saturated fat.
For ingredient suppliers, the trend presents opportunities across areas including grains, pulses, plant proteins, fruits, vegetables, fibres and other functional ingredients.
Food manufacturers are increasingly looking for ingredients that can deliver nutritional benefits while maintaining taste, texture, shelf stability and processing performance.
The shift is particularly significant as food companies face the challenge of reformulating established products without compromising the consumer experience.
From ingredients to agricultural supply chains
PepsiCo’s ingredient strategy is also connected to how raw materials are produced. The company expanded regenerative agriculture practices to 4.7 million acres in 2025, up from more than 3.5 million acres in 2024, with a target of reaching 10 million acres by 2030.
This is becoming an important consideration for ingredient sourcing as manufacturers seek greater resilience and traceability in agricultural supply chains.
The availability and sustainability of crops such as grains, potatoes, fruits and other plant-based raw materials are increasingly linked to climate conditions, soil health and farming practices.
For the wider food ingredients industry, PepsiCo’s progress highlights the growing commercial opportunity around diverse, nutritious and sustainably sourced ingredients.
As global food manufacturers continue to reformulate products and develop new categories, ingredient suppliers are likely to play an increasingly important role in delivering the nutrition, functionality and sustainability attributes demanded by the market.
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