PepsiCo is making a major pivot toward clean-label food — and it could reshape the snack aisle.

As reported by Reuters, PepsiCo is rebranding Lay’s and Tostitos to eliminate artificial dyes and flavours, while swapping out processed oils (like canola and soybean) for healthier alternatives such as avocado and olive oils. 

It’s a bold move that signals a deeper shift in the food and beverage industry, one where ingredient transparency, health, and trust now matter as much as taste. 

Summary: What’s Changing? 

• Lay’s and Tostitos will now be made with only a handful of familiar ingredients, potatoes, oil, and salt. 

• Artificial colorants and flavor enhancers will be completely removed. 

• PepsiCo aims to align its flagship snacks with what consumers increasingly describe as “real food.” 

• This builds on previous efforts: as of April 2025, 60% of the Frito-Lay portfolio was already dye-free, and that number is rising. 

• The effort is partly driven by pressure from U.S. Health Secretary Robert F. Kennedy Jr. and the Make America Healthy Again (MAHA) campaign, which has highlighted health risks tied to synthetic additives. 

  
  

Why This Matters — Key Implications for CPG & Consumer Behaviour

 

1. The Clean-Label Expectation Is Mainstream 

This isn’t a niche anymore. A growing number of consumers, especially millennials and Gen Z, are actively seeking products with short, understandable ingredient lists. Clean-label eating has gone from trend to table stakes. 

Implication: Brands that don’t evolve may be left behind. Even legacy household names must re-earn consumer trust. 

2. Legacy Brands Are Under Pressure 

Heritage CPG brands like PepsiCo are increasingly challenged by emerging DTC and wellness-driven competitors. These new players often build trust by default, using transparency, authenticity, and health-focused positioning from the ground up. 

Implication: Big brands are having to reformulate at scale, with huge implications for sourcing, supply chains, and marketing. 

3. Healthier Products May Mean Higher Costs 

Swapping avocado or olive oil and removing artificial ingredients isn’t cheap, especially at the scale PepsiCo operates. It remains to be seen whether consumers are willing to pay more, or if PepsiCo can maintain pricing parity. 

Implication: The tension between value vs. values will define the next chapter of consumer decision-making, especially during inflationary times. 

4. Packaging and Messaging Will Be Critical 

PepsiCo is leaning into messaging like “Made with potatoes, oil, and salt” — a simple language that speaks to consumer instincts about food purity and safety. But this kind of messaging must be backed by real change, not just marketing spin. 

Implication: Packaging and in-store communication will play a key role in shifting perceptions and winning over skeptics. 

5. Regulatory Pressure Is Fueling Innovation 

Government figures, including Health Secretary Robert F. Kennedy Jr., have been vocal about removing harmful additives. The MAHA campaign specifically targets synthetic dyes that some studies link to ADHD and other behavioral effects in children. 

Implication: More regulations may follow, meaning brands that adapt proactively will be better positioned than those who wait to react. 

Final Thought 

PepsiCo’s move isn’t just about chips; it’s about how consumer values, public health narratives, and competitive market dynamics are reshaping the entire CPG sector. 

We’re entering an era where brand trust isn’t built through advertising alone; it’s built through ingredients, transparency, and values alignment. 

The future of food is clean, clear, and values driven.