Key Facts:
PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase.
The India Food and Beverage Market size was valued at US$ 334 Bn.
Prime Highlights:
PepsiCo achieved strong organic growth in both convenience foods and beverages in India, despite weaker demand in the U.S.
India’s double-digit growth helped offset declines in other regions like the Middle East and Pakistan.
PepsiCo reported 1% global growth in beverage volumes, driven by double-digit growth in India.
Key Background:
PepsiCo has reported a strong performance in India, with double-digit organic growth in both its convenience foods and beverage categories. Despite facing a decline in demand for its sodas and snacks in its largest market, the U.S., PepsiCo has achieved robust results in India, highlighting the country’s growing significance for the company.
The company’s latest financial report reveals that its convenient foods unit volume in India grew by double digits, contributing to a 2% global increase in this segment. The company attributed this growth to strong performance in India and South Africa, despite declines in other regions like the Middle East and Pakistan. Similarly, PepsiCo’s beverage unit volume saw a 1% global growth, bolstered by double-digit expansion in India. However, this was offset by declines in other international markets, including the Middle East, Pakistan, and Nigeria.
PepsiCo’s market share for both savory snacks and beverages remained strong in India, underscoring its continued dominance in the sector. The company also highlighted its strategic shift with the establishment of a new International Beverages Region, designed to unify its global franchise partners under a single management structure. As part of this restructuring, PepsiCo has designated India as one of its 13 “anchor markets,” positioning it as a key growth driver for the company moving forward.
Despite challenges in its home market, PepsiCo’s international operations now account for 40% of its total revenue, with India positioned as a pivotal contributor to future growth. The company’s chairman and CEO, Ramon Laguarta, emphasized that the restructuring and strategic focus on high-growth markets like India reflect PepsiCo’s commitment to expanding its global footprint and sustaining long-term success. In the Indian market, PepsiCo competes with major rivals such as Coca-Cola, Paper Boat, and Reliance Consumer Products.