PepsiCo Expands Investment in Saudi Potato Processing Plant to $80 Million
PepsiCo has announced a significant increase in its investment in a new potato processing facility in Saudi Arabia, raising its total commitment to $80 million. Located in Jeddah, this facility is designed to bolster the local production of snacks under the company’s flagship Lay’s brand and will serve both domestic and regional markets.
The expanded investment highlights PepsiCo’s strategy to strengthen its regional supply chain and respond to growing demand for convenient snack products across the Middle East. According to PepsiCo executives, the plant is expected to be operational in 2025 and will support the company’s sustainability goals by enhancing local sourcing and reducing reliance on imports.
The facility will source approximately 40,000 tonnes of potatoes annually from local Saudi farms, aligning with the country’s Vision 2030 plan to diversify its economy and increase domestic agricultural production. PepsiCo reports that it currently partners with more than 70 local farmers, a number expected to rise as production scales up.
Saud Al Hamidi, Senior Director of Government Affairs and Sustainability at PepsiCo, stated that the investment reflects the company’s long-term commitment to the region and aims to support local communities through job creation and agricultural development. The Jeddah plant will also integrate sustainable practices, including water reuse and energy-efficient technologies.
This move underscores broader trends in FMCG supply chain localization and sustainability. With rising geopolitical volatility and increasing consumer interest in locally produced goods, multinational brands are accelerating efforts to fortify their presence closer to end markets. PepsiCo’s investment responds to both these strategic imperatives while tapping into the Gulf region’s growing snack category, which continues to register strong year-on-year growth.
In addition to boosting local economic impact, the plant is expected to play a key role in supporting PepsiCo’s global climate goals by minimizing logistics emissions and championing regenerative farming practices among its supplier network in Saudi Arabia.
FMCG stakeholders will be watching closely as the project comes online, offering a blueprint for balancing supply chain resilience, sustainability targets, and regional growth strategies in high-demand categories.