PepsiCo has forecasted its annual profit to fall below market estimates, citing weak demand for its soda and snack products. The company’s latest financial outlook has raised concerns among investors, as it reflects broader challenges in the consumer goods sector, including shifting consumer preferences and inflationary pressures.

The beverage and snack giant reported a 4% decline in quarterly revenue, with soda sales dropping by 6% and snack sales falling by 3%. “We are facing headwinds in key markets, particularly in North America and Europe,” said a PepsiCo spokesperson. “We are taking steps to adapt to changing consumer preferences and improve our product offerings.”

Analysts attribute the decline to increased competition from healthier alternatives and a growing preference for low-sugar and low-calorie options. “PepsiCo needs to innovate and diversify its portfolio to stay competitive,” said a market analyst.