Beverage giant PepsiCo said it is betting on China's evolving consumer landscape and rapid adoption of advanced technologies to drive its next phase of growth, as the country promotes domestic consumption as a strategic priority.

Chairman and CEO Ramon Laguarta said the US-based company's long-term strategy aligns closely with the country's 15th Five-Year Plan (2026-30), which prioritizes high-quality consumption, innovation-led growth and the expansion of domestic demand.

PepsiCo plans to deepen cooperation in areas including raising industry standards, advancing artificial intelligence-driven innovation and accelerating sustainable transformation, Laguarta said on the sidelines of the China Development Forum 2026 in Beijing.

Referring to the government's "Shopping in China" initiative aimed at boosting spending and modernizing consumption patterns, Stephen Kehoe, PepsiCo's executive vice-president and chief corporate affairs officer, said the company sees the initiative as an opportunity to meet the needs of the evolving Chinese economy, and to provide high-quality, healthier and more sustainable products.

Kehoe said China's stable business environment, steady growth and increasingly clear regulatory framework have supported long-term investment by multinational companies, even as the economy continues to modernize rapidly.

China is the company's third-largest market globally and a key engine for innovation, Kehoe said. Last year, the company refreshed its logo and updated the brand image of its core food and beverage businesses.

Investments in local research and development have enabled the company to tailor products specifically for Chinese consumers, with some innovations now being exported to other markets.

PepsiCo's operations in China have evolved through three stages, Kehoe said, beginning with early market entry, followed by a localization phase that established domestic production and agricultural partnerships.

The company now operates 10 food plants, more than 50 bottling facilities and over 70 farms in the country, alongside a major R&D center in Shanghai.

The current phase is shifting toward a "China for the world" model, in which locally developed products are scaled up internationally.

Kehoe gave the example of Quaker Oats products developed in China that are now being introduced to overseas markets, particularly targeting aging populations.

At the same time, PepsiCo is adapting to more fragmented and occasion-based consumption patterns, focusing on delivering products tailored to different usage scenarios throughout the day while building stronger emotional connections with consumers.

Technology is playing an increasingly central role in that transition. The company is deploying artificial intelligence and other advanced tools to improve production efficiency, optimize product development and support agricultural productivity. Technologies such as drones and data-driven farming systems are being used to help farmers boost yields and reduce crop risks.

China also serves as a testing ground for PepsiCo's sustainability initiatives, with innovations in areas such as energy and water efficiency being scaled up globally. A food plant in Wuhan, Hubei province, for example, implemented a biogas-to-biomethane project to convert waste into energy, a solution that the company is expanding across the Asia-Pacific region.

In marketing, the company is shifting from traditional mass marketing toward more targeted, algorithm-driven engagement, reflecting the rise of digital platforms and AI-assisted purchasing decisions.

"We must remain exceptionally relevant within a digital ecosystem that will demand that brands and products are top-of-mind for consumers at all times of the day," Kehoe said, adding that ensuring product visibility across digital channels will be critical as consumers increasingly rely on AI tools and personalized recommendations.