Animal Welfare

Why it matters

Approach

PepsiCo shares concerns regarding the ethical and humane treatment of animals and recognizes the internationally-adopted Five Freedoms of animal welfare to support good physical and mental well-being for all animals within our direct supply chain:

1. Freedom from hunger and thirst
2. Freedom from discomfort
3. Freedom from pain, injury, or disease
4. Freedom to express normal behavior
5. Freedom from fear and distress

While animal products do not make up a large portion of our commodity purchase volumes, we strive nevertheless for sustainable practices in animal well-being. Some of the products in PepsiCo's broad global portfolio that use animal ingredients include: dairy seasonings, eggs in baked items and other products or chicken broth.

We are working to reach two animal welfare ambitions:

• Continuing to source 100% cage-free eggs in the U.S. (achieved in 2020); and
• Sourcing cage-free eggs in global markets by the end of 2025.¹

We aim to achieve these ambitions by reformulating certain products to incorporate egg-substitute ingredients and transitioning to cage-free egg suppliers.

Working closely with our suppliers is vitally important to improving animal welfare in our global supply chains. Many of the animal ingredients we purchase do not come directly from farmers, which makes suppliers key to driving improvements. Suppliers are urged to follow the standards outlined in our Global Policy on Animal Welfare, which outlines our approach to managing relevant issues in our supply chain, including dairy cattle and broiler chicken welfare, cage-free eggs and animal testing. Additionally, all PepsiCo suppliers are expected to adhere to the principles outlined in our Global Supplier Code of Conduct.

Progress

We continue to work with suppliers to support compliance with the standards set out in our Global Policy on Animal Welfare.

Cage-free eggs

Globally, our 2024 cage-free egg procurement represented 70% of our total egg spend.² In the U.S., we continued purchasing only cage-free egg ingredients, as we have since 2020. Additionally, we now source 100% cage free eggs in Europe (achieved in 2024) and — as of early 2025 — in Canada.

Based on available statistics, we estimate that our egg procurement represents less than one-tenth of a percent of the global egg market.³

Our market teams have plans in place to support our efforts to transition to 100% cage-free by the end of 2025.¹ In early 2025, the procurement team in Canada —  our second-largest egg buying market after the United States — completed their transition to purchasing cage-free eggs. In other markets, including Latin America, we are reformulating recipes to reduce the amount of egg ingredients used in our products and evaluating our supply chain, identifying new egg suppliers as necessary. We plan to continue reporting annually on our progress here as we work towards our 2025 vision.

¹Excluding Be & Cheery portfolio

²Results exclude Be & Cheery portfolio

³Total market size (as measured in U.S. dollars) derived from the UN Food and Agriculture Organization’s crops and livestock products dataset using global 2023 data (the most recent available at time of publication) and PepsiCo’s 2024 global procurement data