PepsiCo changes products and bets on simpler ingredients.

The change is not only about PepsiCo

When one of the world's largest food and beverage companies decides to change its portfolio, the movement is worth watching.

Not necessarily because of the company itself, but because decisions of this size can reveal where the market is heading.

PepsiCo announced at the end of 2025 a strategy to transform its portfolio in the United States, including the reduction of approximately 20% of its product lines, as well as a search for simpler ingredients in part of its snacks and products with characteristics such as more protein, fiber and whole grains.

The strategy also involves more competitive prices and changes in the product offering.

And this raises a much more interesting question:

why are large companies starting to change the composition and positioning of their products?

The consumer has changed

For a long time, competition in the supermarket was dominated by factors such as:

• price;
• flavor;
• brand;
• packaging;
• advertising;
• convenience.

These factors remain important.

But another component is gaining space:

composition.

Consumers have started paying more attention to sugar, sodium, protein, fiber, colors, sweeteners and other ingredients.

This does not mean everyone is eliminating ultra-processed products from their diet.

It means there is growing demand for more information and more options.

Fewer products, more focus

One interesting part of PepsiCo's strategy is the decision to reduce a portion of its portfolio.

This may seem strange.

After all, why would a company remove products from its own shelves?

Because having hundreds of different products does not necessarily mean having an efficient portfolio.

Products with low demand take up space, increase operational complexity and can make it harder to concentrate investment on items that truly have potential.

By reducing part of the portfolio, the company can concentrate resources on products considered more strategic.

And the ingredients?

This is perhaps the most interesting part for anyone who follows the food market.

PepsiCo stated that it intends to advance toward simpler ingredients in its snacks.

In addition, the company has been working on products with different nutritional proposals and reformulations.

In 2026, Reuters highlighted that the company was updating brands and introducing products without certain artificial colors or flavors, as well as options with more protein and less sugar in some categories.

This does not mean that all of the company's products have become "natural" or that all of them have a simple composition.

And this point is essential.

A specific reformulation does not automatically transform an entire company's portfolio.

The movement is bigger than one company

Perhaps the most important thing is to observe that PepsiCo is not alone in a completely static market.

Large food companies are being pressured by different forces:

• consumers paying closer attention to labels;
• new regulations;
• increased demand for products with certain nutritional characteristics;
• growth of smaller brands;
• products positioned as "clean label";
• search for protein and fiber;
• concern about excess sugar and sodium;
• changes in eating habits.

Even regulators are increasing the discussion about how industrialized foods should be presented to consumers.

In other words:

the supermarket is changing because the consumer is changing.

Does this mean "simpler" is always better?

No.

This is an important conclusion.

A shorter ingredient list can be interesting, but the number of ingredients is not a sufficient metric to determine whether a product is healthy.

A product can have few ingredients and still contain a lot of sugar, saturated fat or sodium.

Likewise, some ingredients with unfamiliar names may have legitimate technological functions and be considered safe within the conditions established by authorities.

That is why simplifying composition can be a relevant characteristic, but it should not be the only criterion.

What is really changing?

Perhaps the biggest change is this:

companies have realized that consumers are starting to ask more about the product and less only about the brand.

It is an important change.

The package may say "traditional", "premium", "natural" or "with selected ingredients".

But there is one piece of information that does not need a slogan:

the ingredient list.

That is where an important part of the choice begins.

The future may be more transparent

If this trend continues, we may see more and more products being reformulated to:

• reduce certain ingredients;
• replace some additives;
• increase protein or fiber;
• reduce sugar or sodium;
• simplify recipes;
• use recognizable ingredients;
• communicate nutritional characteristics better.

This does not mean the industry will stop producing highly processed foods.

It means there will probably be more competition between different composition proposals.

And that is positive for shoppers.

Because when companies compete not only on price and advertising, but also on perceived quality, composition and transparency, consumers get more options.

Conclusion

The PepsiCo story is interesting not because we need to talk about PepsiCo.

It is interesting because it shows a bigger change.

The market is starting to understand that consumers want to know more about what they are buying.

And in this scenario, looking at composition stops being a niche concern and becomes part of the purchase decision.

The next dispute in the supermarket may not be only for your attention. It may be for your trust.

Sources: PepsiCo and Reuters on portfolio strategy, reformulation and product evolution.