US & Global Economic Impact Analysis and Forecasts

Freedonia analysts and economists are sharing their insights on how major events are impacting different parts of the US and global economies.

PepsiCo’s Earnings Results & What That Says About Food & Beverage Trends

PepsiCo announced second quarter 2020 earnings results on July 13. Here are a few notes about key trends in PepsiCo’s sales and what that means more broadly.

  • Snacks, esp Cheetos, are up...consumers want comfort foods and with a lot of people -- particularly children -- eating at home, snacks are big
  • Juices are up...consumers are looking for products with a health-halo, particularly if it boost the immune system
  • Oats are up...not only are more consumers baking at home, but more are also eating breakfast at home and are looking for comforting and healthy foods
  • Beverages, in general, are down...although beverage sales are up in grocery and dollar stores channels, the category is down overall because of weak business at convenience stores (that’s a grab-and-go business, but people aren’t out and about as much) and the closures or limited operations of restaurants, movie theaters, & sports stadiums
  • Pepsi Zero Sugar and Bubly are up...consumers are looking for beverages with less sugar, as products that have more of a health halo compared to high-sugar options

Going forward, how can food and beverage companies continue to succeed and grow?

  • Develop products – snacks, meal replacement bars, beverages, etc -- that focus on immunity. Probiotics, prebiotics, and antioxidant vitamins are immune system-boosting cues to consumers.
  • Consider their new products that group popular snack brands and comfort foods. PepsiCo’s pipeline includes Cheetos mac and cheese – a combination of a popular snack brand and a beloved comfort food
  • E-Commerce – it’s here to stay as contact-free ordering and home delivery are habits that are becoming sticky among consumers. PepsiCo developed their own e-commerce platforms to sell their food products directly; expect other big food companies to follow.

For more information and discussion of opportunities, see The Freedonia Group’s extensive collection of off-the-shelf research in the packaging industry, including new reports on Global E-Commerce Packaging and Global Foodservice Single-Use Products. Additional information is also available in food and beverage reports available from The Freedonia Group’s sister publisher Packaged Facts, including Food Carryout & Delivery, Food Carryout & Delivery: Special COVID-19 Consumer Insights, Food Market Outlook 2020: Home Cooking & Grocery Shopping in the Age of Coronavirus and Beverage Market Outlook 2020: Grocery Shopping & Personal Consumption in the Coronavirus Era. Freedonia Custom Research is also available for questions requiring tailored market intelligence

  Covid-19      Food & Beverage