PepsiCo Reports 18% Recycled Plastic Content and 6% Virgin Plastic Reduction in 2025

PepsiCo incorporated 18% recycled plastic into its primary packaging in key markets in 2025 and reduced the absolute tonnage of virgin plastic used in that packaging by 6% year on year, according to the company’s 2025 ESG Summary. The company reported using approximately 2.0 million tonnes of plastic across its key packaging markets during the year.

The reported reduction covers absolute virgin plastic tonnage in primary packaging between 2024 and 2025. PepsiCo also increased the share of recycled plastic incorporated into its primary packaging as it continues to adjust its packaging portfolio and material sourcing.

PepsiCo said it expects 94% of its primary and secondary packaging portfolio in key markets to be reusable, recyclable or compostable by design by 2030. The company is working to increase recycled content while redesigning packaging for end-of-life recovery.

“We’re systematically designing packaging to be reusable, recyclable, or compostable, while incorporating more recycled content across our global portfolio of primary and secondary packaging in key packaging markets,” PepsiCo said in the report.

The company also pointed to investment in deposit return systems (DRS), extended producer responsibility (EPR) frameworks and circular economy infrastructure. PepsiCo Chairman and CEO Ramon L. Laguarta said progress toward its broader packaging goals depends partly on improvements beyond the company’s own supply chain, including recycling infrastructure.

PepsiCo’s latest figures follow improvements reported in its 2024 ESG Summary. At that time, the company said 93% of its primary and secondary packaging in key markets was reusable, recyclable or compostable, while virgin plastic tonnage in primary packaging fell 5% and recycled plastic content increased 15% between 2023 and 2024.

The company has also revised several of its packaging targets. Its previous goal of reducing absolute virgin plastic derived from non-renewable sources by 20% by 2030 was replaced by an average year-on-year reduction target of 2%. Its earlier ambition of 100% recyclable, compostable, biodegradable or reusable packaging by 2025 was revised to 97% reusable, recyclable or compostable primary and secondary packaging in key markets.

PepsiCo has set a target for its primary plastic packaging to contain at least 40% recycled content by 2035 or sooner. The company said external factors affecting recycled material availability, including restrictions on food-grade recycled PET in some markets and regulatory changes elsewhere, have influenced its packaging strategy.

The packaging targets are part of PepsiCo Positive (pep+), the company’s broader business strategy covering supply chain resilience, resource management and sustainability initiatives.

Source: PepsiCo

SUNSHINE Spotlight: PepsiCo reported an 18% recycled plastic share and a 6% year-on-year reduction in virgin plastic tonnage in its primary packaging across key markets in 2025, while continuing to adjust its longer-term packaging targets.