The Redesign 

“From potato to chip, the next chapter of Lay’s”, reads the headline for the latest packaging refresh announcement. You may have noticed new Lay’s packaging on the shelves of your local grocery store. Standing next to their previous designs as they continue to sell through the final bits of their old product. Onto the newer version of themselves!

Side by side comparisons note some key differences. The first thing that stood out is the shift in color tones, opting for deeper richer versions of their highlighter yellows and greens of the past. With their background imagery looking like wood grains, and a small bowl of salt or real ingredient images next to more realistic potatoes.

The major value prop highlights that these chips are made with real potatoes. And no colors or flavors from artificial sources. With Lay’s citing in their own research for the shift that 42% of people eating Lay’s chips don’t know it’s made with real potatoes. My assessment of the research accuracy is skeptical at best.

But, it’s not all bad or silly. It’s a great signal that brands are learning that consumer preferences are changing in a new direction. The demand on legacy brands to adapt is growing. Those that respond to the shifts continue to champion, we can expect nothing less from Pepsico’s Lay’s.

The Major Shift in Consumer Preferences

More consumers want to consume less highly processed foods.
Over one in four consumers globally make changes in their diets in order to limit processed foods in their lives according to Euromonitor International. UPFs(Ultra-Processed Foods) are losing favor, and preferences are shifting to ‘clean’ eating patterns and labels.

That’s not all with the shift to limit UPF’s in their diet- consumers also want simplified ingredient lists. It’s no longer enough to not eat processed foods. The newest example of this is Chobani, a yogurt brand, taking the coffee creamer market by storm.  When the average ingredient list from brands like Starbucks or CoffeeMate often start with some hydrogenated oil, and a long list of additives to preserve shelf-life, Chobani offers wholesome simplicity. Their simplified ingredient list typically has three ingredients total: milk/cream, cane sugar, and flavor (vanilla, cinnamon, etc). And consumers love it.

They’re leaning into small (and niche) brand alternatives.

Values, beliefs and authenticity matters now more than ever to the modern consumer. And right now the brands that have the capacity to champion this are small businesses.

The shift in popularity from big legacy brands to small niche alternatives is recent, but represents a steady desire from people to shop with their hearts more than price.  With over 42% of Americans preferring to pay more for a small business alternative than an affordable legacy brand option.

Want products they buy to look creative and unique- even food.

It’s evident that hyper-creative packaging is on the rise. It’s not random, Gen Z is opting to purchase products with unique branding and presentation more than previously simplified approaches to product packaging. With 2026 trends for CPG designs being extremely creative and value prop rich.

Gen Z wants to feel like they are getting a deal or a value exchange with every purchase they make according to McKinsey. The more your packaging feels like an addition to the product, and highlights its best qualities the more consumers will purchase. 

More On Pepsico’s Response

Pepsico knows this shift is happening in a dramatic way. They have a team of researchers and marketers attempting to tie down every consumer and market expectation there is and adapt to them when they become a demand for performance. Even when the soda market changed with brands like Olipop and Poppi joining the scene, instead of creating their own, Pepsico purchased Poppi to deliver under what feels like a small brand name.

Fortune 500’s don’t change legacy packaging for no reason
They’re adapting to Gen Z. If Pepsico wants to remain a legacy brand, they have to highlight things like farm to table initiatives and lives impacted by their production process in a beneficial way. Such as their Farm to Smiles campaign.

It’s Just A Messaging Shift

With their packaging adaptation, they attempt to highlight being a clean alternative even to their own previous brand messaging. And in a small way, they’ve changed one ingredient (like using olive oil in baked or kettle chips) and are changing their ingredients to no longer being made with artificial ingredients. That’s a win. 

But, here’s the facts. Lay’s chips have always been made with real potatoes. They’ve always been around since 1893. They’ve always been gluten free. And they’ve always had healthier alternatives like baked and kettle options. It is still a highly processed high fat food.

Therefore these subtle shifts in their messaging on their packaging allow them to adapt to consumer preferences in a clever way. The appearance of major changes while they adapt with subtlety. And let’s be real, it is extremely hard to change the ways of an almost 200 year old legacy brand when it comes to what was making them the most profit (processed food). 

I Think We Need More Small Businesses 

The market for new CPG brands is booming, especially for small businesses. We discovered together that Gen Z would rather pay more for these brands than continue to shop with larger legacy alternatives. 

As modern preferences change, the large companies are going to continue to scramble. The Lay’s refresh is only one of many to come. I think we need more small businesses filling the gaps, not more food monopolies making efforts to survive the change.

It is not a matter of sticking it to the big guy. It’s about keeping food, craft, and culture in the hands of everyday people who are looking for opportunities to serve their communities with what they do.

Brandch is a small studio owned by myself and my husband Brandon. And we absolutely love every single opportunity we get to serve small businesses who are looking to make a change. Some of our favorite brands and people we’ve worked with are creating waves in the CPG market to bring real clean ingredients to the hands of everyday people.

You can check out some clients here:
Season It Up With Acme Salt CoSnack It Up With Jason Friendly Foods