PepsiCo is increasing its efforts to phase out artificial ingredients from its product range, following new regulatory actions on synthetic dyes in food and beverage products. The company, which owns major brands such as Lay’s and Tostitos, is moving towards natural colour alternatives and expects all its products in the US to eliminate artificial colours by the end of 2025.
This shift comes as the US Food and Drug Administration (FDA) aims to phase out six petroleum-based synthetic dyes by 2026. PepsiCo’s actions are in response to growing consumer demand for more natural ingredients, with a particular focus on reducing artificial colours and offering alternatives that meet evolving health and wellness preferences.
PepsiCo’s portfolio transformation is also influenced by broader health trends, including the rise of GLP-1 weight loss drugs. In response, the company plans to expand its range of products focused on fibre, hydration, and protein to cater to changing dietary preferences. PepsiCo is particularly focused on offering smaller portion sizes, in line with consumer behaviour trends, especially those using GLP-1 medications.
While the company is monitoring developments surrounding the exclusion of certain processed foods, including sugary drinks, from the US Supplemental Nutrition Assistance Program (SNAP), it anticipates limited impact on its business. PepsiCo is continuing to adjust its pricing and product offerings to meet the needs of consumers focused on portion control and healthier options.