How PepsiCo Uses Machine Learning to Predict Consumer Trends and Drive Product Innovation

By: GoBeyond Team
July 3, 2025
3 min read
PepsiCo AI analytics dashboard showing consumer trend analysis and product innovation pipeline

Quick Overview

PepsiCo leveraged machine learning and AI-driven analytics to analyze vast consumer data, including purchase behavior, retailer feedback, and social media sentiment, to identify emerging consumer trends. This insight guided the development of the Bubly sugar-free sparkling water line by optimizing flavor profiles, branding, and packaging to meet health-conscious consumer demand. The AI tools also accelerated product development cycles and enhanced market fit.

PepsiCo
PepsiCo
Company Size
Large multinational consumer goods
Revenue Range
$80B+ annual revenue
Primary Challenge
Identifying emerging consumer trends quickly to innovate products that meet evolving preferences
Key Metrics
\- Data-backed product innovation\- Stronger market fit\- Accelerated product development\- Analysis of millions of consumer conversations\- Identification of thousands of trend manifestations\- Rapid development of new product lines like Bubly and Off The Eaten Path

The Problem

Traditional market research was slow and fragmented, limiting the ability to capture fast-changing consumer preferences

The Solution

AI and machine learning platforms including Black Swan Data’s Trendscope, Tellius analytics, and proprietary AI tools to analyze social data, purchase patterns, and retailer feedback

Results

\- Faster and more accurate trend prediction\- Successful launch of Bubly sparkling water\- Development of new snack lines aligned with consumer health trends\- Enhanced decision-making and personalization\- Reduced innovation cycle times from years to months

“AI has changed how we engage with consumers and innovate products. It allows us to understand what consumers want and respond faster than ever.”“Skai and Black Swan have helped us build capabilities to surface granular insights we only dreamed of before.”

Jessica Yankell, Sr. Manager of Innovation and Portfolio Transformation Insights, PepsiCoAthina Kanioura, Chief Strategy and Transformation Officer, PepsiCo

Details

Industry
Retail & E-commerce
Departments
Product Development & Innovation
Use Cases
Market Research
Tags
GenAI
NLP
Scalability
AI Tools Used
No items found.
Sources
https://researchworld.com/articles/successful-ai-implementations-in-market-researchhttps://bernardmarr.com/the-fascinating-ways-pepsico-uses-artificial-intelligence-and-machine-learning-to-deliver-success/https://blackswan.com/resources/case-studies/bubbling-up-a-sparkling-new-drinks-brand-for-pepsicohttps://www.insightplatforms.com/5-ways-to-use-ai-for-innovation-research/https://www.tellius.com/resources/blog/pepsicos-analytics-transformation-from-manual-reports-to-ai-driven-consumer-insightshttps://www.pepsico.com/our-stories/story/artificial-intelligence-at-pepsicohttps://www.aimpower.ai/case-study-pepsicohttps://www.just-food.com/interviews/we-are-moving-faster-to-get-to-consumers-sioned-winfield-insights-transformation-director-at-pepsico/

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