Path to Plastic Sustainability: PepsiCo’s Journey

Introduction

Plastic waste is a global challenge threatening landfills, oceans, and wildlife. As one of the world’s largest food and beverage companies, PepsiCo recognized its role in the plastic life cycle—and set out to change it. Through clear goals, bold strategies, and strong partnerships, PepsiCo’s path to plastic sustainability shows how a big brand can shrink its plastic footprint. In this article, we’ll explore why plastic matters, what PepsiCo is doing to reduce, reuse, and recycle, and how these efforts help drive a circular economy. By understanding this journey, we can see how every consumer and business can play a part in building a cleaner planet.

Why Plastic Sustainability Matters

Plastic is cheap, light, and durable—ideal for food and drinks. Yet about 91% of plastic is never recycled and ends up polluting nature. Plastic breaks into microplastics, harming animals and entering our food chain. Governments, NGOs, and consumers now demand solutions. For fast-moving consumer goods companies, the challenge is twofold:

1. Reduce virgin plastic use to cut resource demand.
2. Increase recycling and reuse to keep plastic in the economy.

PepsiCo’s ambition reflects this reality. It set clear targets to rethink packaging design and partner across the value chain.

PepsiCo’s Plastic Sustainability Goals

In 2021, PepsiCo announced its “Pep+” (PepsiCo Positive) strategy. This includes ambitious plastic targets:

• Reduce virgin plastic use by 50% by 2030 (against a 2020 baseline).
• Make 100% of packaging recyclable, compostable, or biodegradable by 2025.
• Use at least 25% recycled content (rPET) in plastic packaging by 2030.
• Collect and recycle a bottle or can for each one sold by 2030.

These goals align with global calls for a circular economy—where waste becomes a resource. PepsiCo’s approach combines science-based targets with real-world tests to drive innovation and impact.

Reducing Virgin Plastic: Lightweighting and Material Innovation

The first step on the sustainability path is to cut down the amount of new plastic entering the system:

1. Lightweighting

PepsiCo designs bottles and containers that use less plastic without compromising strength. By tweaking shapes, wall thickness, and resin types, the company has shaved off millions of pounds of plastic annually. Less material means lower costs and smaller environmental footprints.

2. Alternative Materials

Packaging experts at PepsiCo test plant-based resins, paper coatings, and bio-polymers. For example, some LAY’S potato chip bags now use partial paper or compostable films. Though wider rollout requires supply-chain upgrades, pilot programs help assess performance and cost.

3. Bulk and Refillable Formats

In select markets, PepsiCo offers fountain dispensers, large-format bottles, and refill stations. These models shift the focus from single-use bottles to shared containers, reducing overall plastic demand.

Embracing Recycled Content: The Rise of rPET

Recycled PET (rPET) is a proven way to close the loop:

• Sourcing rPET: PepsiCo partners with recycling networks to secure high-quality post-consumer PET.
• Clear Bottles with 100% rPET: In Europe, brands like AQUAFINA now use bottles made entirely from recycled plastic, matching the clarity and strength of virgin PET.
• Scaling Up: Using 25% rPET by 2030 means diverting over half a billion pounds of plastic from landfill each year.

Investing in rPET not only reduces resource extraction but also supports recycling markets and infrastructure—creating a virtuous cycle where demand fuels better collection and processing.

Closing the Loop: Collection and Recycling Initiatives

Even with better packaging, recycling systems are vital. PepsiCo works on three fronts:

1. Collection Partnerships

In key regions, PepsiCo funds community cleanups, drop-off centers, and incentivized collection programs. These efforts boost the volume and quality of plastic entering recycling facilities.

2. Investments in Infrastructure

PepsiCo invests in sorting plants and recycling technologies. Better sorting leads to purer PET streams, raising rPET yields and lowering contamination rates.

3. Consumer Engagement

Education campaigns, clear recycling labels, and refill station maps help shoppers recycle correctly. Apps and QR codes guide users to local drop-off points, making recycling easier.

By tackling collection and processing, PepsiCo supports a robust recycling ecosystem that benefits all brands and communities.

Redesigning for Recyclability

Even recyclable plastics can end up in landfill if design choices hinder processing. PepsiCo’s design teams apply “Design for Recycling” principles:

• Mono-Material Packaging: Avoiding multilayer films that are hard to separate.
• Easy-to-Remove Labels and Caps: Using water-soluble adhesives and caps made from the same material as the bottle.
• Clear Sorting Cues: Standard symbols, color codes, and simplified bottle shapes speed up machine sorting.

Simpler, more uniform packaging boosts recycling rates and lowers costs across the chain.

Innovative Trials and Pilot Programs

PepsiCo tests bold ideas in real markets:

• Paper Bottles: A pilot paper-based bottle for STARBUCKS ready-to-drink launched in 2022. Its waterproof lining is recyclable with paper streams.
• Edible Coatings: For certain snacks, researchers explore edible films that dissolve safely—eliminating packaging waste.
• Deposit-Return Schemes: In parts of Latin America, PepsiCo backs legal frameworks that charge a deposit on bottles, refunded when consumers return them.

These experiments reveal what works at scale and where more innovation is needed.

Partnerships for a Circular Future

No company can solve plastic waste alone. PepsiCo collaborates widely:

• Alliance to End Plastic Waste: Funding R&D and community programs.
• Ellen MacArthur Foundation: Aligning with global circular economy principles.
• Local NGOs and Governments: Co-creating collection programs and policy advocacy.

These partnerships amplify impact, share best practices, and accelerate systemic change.

Tracking Progress and Transparency

PepsiCo publishes annual sustainability reports with clear metrics:

• Virgin Plastic Reduction: Progress toward the 50% cut.
• Recycled Content Volume: Pounds of rPET used globally.
• Packaging Circularity Rate: The share of packaging that is effectively recycled or reused.
• Collection Rates: Bottles and cans collected per unit sold.

Transparent reporting builds trust with consumers, investors, and regulators—and highlights areas for improvement.

Challenges and the Road Ahead

The journey to plastic sustainability is complex:

• Recycling Gaps: Many regions lack effective infrastructure, especially in developing markets.
• Cost Pressures: rPET and alternative materials can be more expensive than virgin plastic.
• Consumer Behavior: Proper recycling depends on clear labeling, convenience, and public awareness.
• Technological Limits: Some formats remain hard to recycle or compost at scale.

PepsiCo addresses these hurdles by continuing to invest, innovate, and partner. The company’s flexible approach lets it adapt to local needs while pushing global standards.

How Consumers Can Help

PepsiCo’s targets succeed faster when consumers play their part:

1. Recycle Properly: Rinse bottles, remove caps, and follow local guidelines.
2. Choose Refillable Options: Use fountain drinks or large-format containers when available.
3. Support Recycled-Content Brands: A preference for products with rPET drives market demand.
4. Reduce Single-Use Consumption: Carry a reusable water bottle or cup.

Every bottle returned to recycling helps close the loop and reduces overall plastic demand.

Conclusion

PepsiCo’s path to plastic sustainability shows that even global brands can transform their packaging and operations for the better. By setting bold goals—cutting virgin plastic, raising recycled content, redesigning for recyclability, and investing in collection systems—PepsiCo aims to lead the shift to a circular economy. Partnerships with NGOs, governments, and industry bodies amplify impact, while transparent reporting keeps progress on track. Challenges remain, but innovation pilots and consumer engagement light the way forward. When companies, communities, and individuals work together, we can reduce plastic waste and protect our planet. PepsiCo’s journey inspires us all to rethink plastic—one bottle at a time.