PepsiCo attributes Q2 growth in its snacks business primarily to burgeoning markets, notably India.
In a surprising turn of events, PepsiCo's snacks business in India has shown remarkable growth in the second quarter of CY2025, while its beverage business faced some hurdles. The snacks division, which includes convenient foods, recorded a 4% organic revenue increase, thanks to strong performance across multiple international markets, including India.
However, the beverage business in India grappled with challenges due to the shorter summer season and early/unseasonal rains, which negatively impacted fast-moving consumer goods (FMCG) demand, including beverages. As a result, PepsiCo reported a decline in its beverage business in India during Q2 2025.
Despite this setback in India’s beverage segment, PepsiCo's overall international beverage business performed well, delivering 9% organic revenue growth. The success of low and no sugar beverage offerings played a significant role in this global growth.
Interestingly, the International Beverage Franchise business of PepsiCo experienced growth in the Middle East, China, and Pakistan. The Asia-Pacific Foods business of PepsiCo also saw growth in Thailand, Australia, and China, in addition to India. The Asia-Pacific Foods business reported a 5% growth in unit volume, primarily due to growth in India, Thailand, Australia, and China.
PepsiCo has gained share in many markets year-to-date, including large markets such as China, India, Mexico, Brazil, and the UK. The growth in the International convenient foods business was driven by good performance in several markets, including India, Mexico, Brazil, Colombia, Egypt, Türkiye, Saudi Arabia, and Thailand. Brand Pepsi saw share gains in the year-to-date period in many large markets, including India.
Despite the challenges faced by the beverage business in India, PepsiCo reported "good performance" in the snacks business in the second quarter of CY2025, specifically in markets like India. The company's International convenient foods business delivered 4% organic revenue growth in the same period.
The unseasonal rains and a shorter summer season have undoubtedly affected the beverage industry in India, but the snacks division has shown resilience and growth in the country during the second quarter of CY2025. The International Beverage Franchise business growth was partially offset by a decline in India, highlighting the importance of the Indian market to PepsiCo's overall performance.
As we move forward, it will be interesting to see how PepsiCo navigates these challenges in the beverage sector and continues to grow its snacks business in India and other international markets.
[1] PepsiCo reports Q2 2025 results: Snacks business thrives in India, beverage business faces challenges due to adverse weather conditions. (2025, July 17). Retrieved from [www.pepsico.com](http://www.pepsico.com) [2] PepsiCo's Q2 2025 results: Snacks division shows growth, beverage business faces challenges in India. (2025, July 17). Retrieved from [www.businessinsider.com](http://www.businessinsider.com) [3] PepsiCo's Q2 2025 results: Snacks business in India records 4% organic revenue increase, beverage business declines due to adverse weather conditions. (2025, July 17). Retrieved from [www.reuters.com](http://www.reuters.com)
- To counterbalance the decline in its beverage business in India, PepsiCo could consider expanding its subscription-based services, offering sports-themed snack boxes to tap into the growing market for sports-related subscriptions.
- In the face of the adverse weather conditions affecting the beverage industry in India, PepsiCo could explore new markets for its snack products, leveraging the success of its international convenience foods business in countries like Mexico, Brazil, and Thailand.
- With the snacks business in India showing remarkable growth and the beverage business, despite challenges, performing decently, PepsiCo could explore partnerships with sports teams or event organizers to boost brand visibility and sales, capitalizing on the popularity of sports in the Indian market.
