PepsiCo made strides in reducing virgin plastic and increasing recycled content last year, according to its most recent ESG report, but future gains depend on stronger collection and recycling systems
The company said in its 2025 ESG report that it reduced virgin plastic in its primary plastic packaging in key packaging markets by 6% between 2024 and 2025 while increasing recycled plastic content from 15% to 18% in 2025. The company’s primary packaging material is PET plastic. The company also reported that 94% of its primary and secondary packaging in key packaging markets was reusable, recyclable or compostable by design.
Beyond reductions in virgin plastic and increases in recycled content, PepsiCo provided limited detail on how much its investments in collection, recycling and circularity initiatives have contributed to measurable recovery outcomes.
To advance its packaging goals, PepsiCo implemented lightweight packaging by reducing material without sacrificing performance for beverages, including Gatorade and Lipton. The method cut down the company’s plastic footprint by seven million pounds in North America, according to PepsiCo. Plastic overwraps were converted to paper boxes for chip multipacks in Australia for Smiths Crinkly Cut, Parker’s, Twisties, Doritos and Cheetos. Other initiatives include eliminating PVC liners from Sting glass bottle caps in Vietnam and switching from flexible to monomaterial packaging for Lays, Cheetos and Hrusteam in Russia.
‘Moving closer to circularity at scale requires stronger infrastructure’
Designing packaging for circularity is only one part of a larger, complex system, Allen said.
“Where more work remains is in advancing the broader systems that help ensure that packaging will be collected, sorted and recycled after use. Designing recyclable packaging is important, but we also recognize that moving closer to circularity at scale requires stronger infrastructure and continued collaboration with many stakeholders across the value chain,” he explained.
One of those partnerships is PepsiCo’s participation in Circular Action Alliance, a non-profit producer responsibility organization backed by brands, retailers and manufacturers to provide compliance help for companies with new extended producer responsibility (EPR) laws for packaging in the US.
Still, Allen said more work is needed to strengthen collection, sorting and recycling systems after packaging is used.
“At the same time, our packaging strategy recognizes that even packaging designed to be recyclable may not be entirely circular if effective collection and recycling systems don’t exist,” he said.
Allen added, “That’s why we’re also supporting collection and recycling infrastructure, well-designed deposit return and extended producer responsibility frameworks, and partnerships designed to strengthen collection and recycling. We believe both packaging innovation and systems change are beneficial to enable further progress.”
