PepsiCo is making moves to keep up with changing tastes by adding healthier snacks to its lineup. As more people look for better-for-you options, the snack and beverage giant is cutting back on sodium, fat, and artificial ingredients in some of its products.

The company’s latest financial report shows a slight dip in North American sales, particularly for its Frito-Lay brands like Doritos and Cheetos. Revenue for the fourth quarter of 2024 dropped to $27.8 billion from $27.9 billion the previous year, though net income rose to $1.5 billion. For the full year, revenue saw a small increase to $91.9 billion, with net income climbing to $9.6 billion. Still, sales volumes for Frito-Lay in North America have been falling for five straight quarters, down 3% in the most recent quarter.

Why the slump? Experts point to two big factors: higher food prices due to inflation and a growing focus on health. Many shoppers are tightening their budgets and choosing snacks with more nutritional value. In response, PepsiCo is rolling out smaller, more affordable snack packs and options with added protein and whole grains.

PepsiCo’s CEO, Ramon Laguarta, explained the strategy during a recent call with analysts. “We’re giving consumers choices that fit their needs,” he said. “Someone might start the month with an 18-count box of chips but switch to a smaller pack later on.”

It’s clear that the snack industry is evolving, and PepsiCo is adapting to stay relevant. With healthier options on the horizon, the company is betting big on wellness to win back customers.