PepsiCo has reported a robust performance in its international snack business for the third quarter of 2025, with India emerging as a key growth driver. The company posted a 2.5% organic revenue increase in its convenient foods segment globally, led by strong demand in markets including India, Mexico, Argentina, Colombia, Egypt, Germany, Türkiye, Australia, Pakistan, and Vietnam .
Despite challenges in its beverage segment, particularly in India due to extended monsoon conditions and rising competition, PepsiCo’s snack portfolio—anchored by brands like Lay’s, Kurkure, and Quaker—continued to gain market share and consumer traction.
📈 Q3 2025 Performance Highlights
- Global Net Revenue: $23.93 billion, up 2.65% YoY.
- Operating Profit: $3.57 billion, down 7.8% YoY.
- International Snack Business: 2.5% organic revenue growth
- India Contribution: Significant share gain in savory snacks category
🥨 India’s Role in PepsiCo’s Snack Growth
India was among the top-performing markets for PepsiCo’s snack business in Q3. The company reported that it held or gained savory snack share year-to-date in India, alongside Brazil, Colombia, France, Australia, and Thailand.
PepsiCo’s India strategy includes expanding its distribution footprint, launching smaller pack sizes to drive volume, and increasing grammage in popular SKUs to offer better value. For instance, the company increased the grammage of its ₹40 PET bottle from 600 ml to 740 ml to counter price sensitivity.
🍿 Segment-Wise Snapshot: PepsiCo Q3 2025
| Segment | Q3 Performance | India Impact |
|---|---|---|
| Convenient Foods (Snacks) | +2.5% organic growth | Strong share gains, resilient |
| International Beverages | -1% volume decline | Weather, competition challenges |
| North America Beverages | Mixed performance | Cost-cutting, SKU rationalization |
| Healthier Drinks (US) | Growth momentum | Not applicable |
🌧️ Beverage Segment Faces Headwinds
PepsiCo’s International Beverages Franchise (IBF) segment saw a 1% decline in Q3, with India and Mexico contributing to volume drops. Extended rainfall across India and aggressive pricing by competitors like Reliance Consumer impacted beverage consumption. CEO Ramon Laguarta acknowledged the slowdown but noted signs of recovery in late September.
🧃 Strategic Adjustments in India
To combat beverage challenges, PepsiCo is prioritizing:
- Price-pack architecture: Smaller packs for affordability
- Value-driven SKUs: Increased grammage at same price
- GST rationalization: Expected to boost food & beverage consumption
🌍 Global Snack Market Share Gains
PepsiCo’s snack business gained or held market share in:
| Country | Category | Performance Indicator |
|---|---|---|
| India | Savory Snacks | Share gain |
| Brazil | Savory Snacks | Share gain |
| France | Savory Snacks | Share gain |
| Australia | Savory Snacks | Share gain |
| Thailand | Savory Snacks | Share gain |
🧾 Outlook for Full Year 2025
PepsiCo expects low-single-digit organic revenue growth for the full year, with core constant currency EPS to remain flat. The company’s improved foreign exchange outlook is expected to support earnings stability.
CEO Laguarta also confirmed plans to aggressively reduce costs in the US snacks category, including plant closures and SKU cuts, while continuing to evaluate acquisitions in high-growth packaged food segments.
🧑💼 Leadership Update
PepsiCo appointed Steve Schmitt, Walmart’s US finance head, as its new CFO, effective November 2025. He replaces Jamie Caulfield, who is retiring after over three decades with the company.
Disclaimer
This news content is based on verified financial disclosures, earnings statements, and executive commentary as of October 10, 2025. It is intended for editorial use and public awareness. The information does not constitute investment advice or product endorsement and adheres to ethical journalism standards.
