Ramon L. Laguarta
Chairman and Chief Executive Officer at PepsiCo
Yes. Vivien, I'll give you a few data so that helps you with the diagnostic. In beverages, non-sugar is growing three times the speed of full sugar. So that gives you a sense of how consumers are, in the U.S., are choosing with the choices. If you go more developed markets around the world like Western Europe, the categories are pivoting very quickly to non-sugar. In the U.K., for example, the non-sugar segment in beverages is already almost above 80% of the market.
So clearly, in beverages, non-sugar is king. You see some of our innovations in the last couple of years with, for example, Gatorade Zero. That was -- it's a huge innovation. I think it's $1.5 billion in only three years and expansive to the category and recruiting new consumers into the brand.
So non-sugar, I think, is unstoppable trend in the beverage category, something we're leaning in with our R&D, something we're leading in with our commercial strategy with the customers. Every brand has a non-sugar leg that is going to be the focus leg for the brand in the foreseeable future. So that is in beverages. Obviously, you see other trends like functionality, consumers looking for additional functionality and willing to pay for that. But your question was more about health, sugar clearly being a dimension.
Now in snacks, I think consumers are also voting with their money. So permissible snacks, what we call permissible snacks, which are the kind of baked or popped or kind of not fried snacks, they're growing much faster than fried snacks, so that we see that as well in that category.
We're seeing kind of more nutritious substrates growing faster than some of the more cereal-based substrates. But one trend we're seeing across is portion control. So a portion control is a huge consumer idea how we're eliminating some of the brakes, if you want, in consumers' mind to have higher frequency in our categories is portion control. We're seeing in snacks a huge growth on small format, multipacks or not only it's portion control but variety. And we're seeing that also in beverages where full sugar products are going to smaller portions, right, like mini cans or some other formats that give the consumer a little pleasure for -- without a lot of calories.
So I would continue to bet long term on health being one of the vectors that consumers are choosing. There's also indulgent. Obviously, there's also functionality. There's also a social moment. There's a lot of vectors in our categories, And that's the beauty of our categories. They attract a lot of consumers because of the multiple occasions. But I will continue to bet on health being one of the vectors of choice for the consumer. And that's part of our innovation strategy and how we're trying to move the categories long term. And it's part of the success, if you think about the sodium reduction, the fad transformation, the sugar reduction in our products, a lot of the R&D investments we've been putting in the company in the last many years are starting to pay back in we're giving the consumer the option to make choices with no trade-offs in taste or any of the other key category choices here.