PepsiCo Cuts Snack Prices Up to 15% to Boost Demand

PepsiCo is rolling out price cuts of up to 15% across several of its core snack brands in the United States, including Doritos, Cheetos, Lay’s, and Tostitos, as it looks to revive volume growth and win back consumers strained by years of food inflation.

Executives said the price reductions follow tests conducted in the second half of 2025, which showed improved purchase frequency. The broader rollout begins this week, with lower prices applied to select pack sizes and highlighted through updated product labeling ahead of the Super Bowl, traditionally one of the biggest snack-buying periods of the year.

“We have spent the past year listening closely to consumers, and they have told us they are feeling the strain. Lowering prices is one step, an important one, in our commitment to deliver for consumers and strengthen our brands for the future,” Rachel Ferdinando, CEO, PepsiCo Foods US, said in a statement.

Stephen Schmitt, Chief Financial Officer, PepsiCo, described the move as playing offense, adding that the company expects the initiative to support both volume and sales growth and improve the competitiveness of its snacks business.

The move comes as large food companies face mounting pressure from shoppers who have pulled back spending or shifted toward cheaper private-label alternatives. After several years of price increases aimed at offsetting higher input and operating costs, consumers are increasingly resistant. “Shoppers are tapped out,” Brian Choi, Managing Partner and CEO, The Food Institute, said in a recent interview, noting that higher prices have been especially difficult for low- and middle-income households.

PepsiCo reported that volume in its food division declined 2% during its 2025 fiscal year, while North American snack volumes fell 1% in recent quarters. The company is not alone in adjusting strategy. General Mills said in December it cut prices on nearly two-thirds of its North American grocery portfolio, resulting in higher volumes.

PepsiCo’s price reductions are being funded in part by cost-cutting measures implemented over the past year. Under pressure from an activist investor, the company has closed snacking plants in Florida, New York and California and plans to reduce its product portfolio by nearly 20%. The savings from those moves are helping offset the margin impact of lower prices.

At the same time, the company is adapting its portfolio to align with reduced consumption. Ramón Laguarta, CEO, PepsiCo said the company is focusing on portion control as more consumers use GLP-1 medications, such as Ozempic and Wegovy, and eat less. More than 70% of the company’s products in the US are positioned as single-serve portions, and PepsiCo plans to expand its multipack offerings to give consumers greater flexibility in managing intake.

Beyond pricing, PepsiCo is also leaning on product innovation to stimulate demand. The company has introduced versions of Doritos and Cheetos without artificial dyes, expanded the use of olive and avocado oil in some snacks, and launched products such as protein-enhanced Doritos, fiber-filled popcorn and Lay’s chips made with alternative oils. In beverages, PepsiCo recently debuted a Pepsi formulation with prebiotics, reflecting a broader push to align core brands with health and wellness trends.

Executives said the combination of improved affordability, portfolio adjustments and innovation is intended to stabilize volumes and position the business for longer-term growth as consumers continue to weigh value more carefully in their food purchases.