The drinks and snacks giant announced a goal Wednesday to reduce new plastic use per serving by half - across all of its brands by 2030, and use 50 percent recycled content in all its plastic packing.
The initiative called "pep+" is a response to growing calls from consumers, clients and climate change advocates to fight plastic waste.
Its main rival Coca-Cola already has plans to sell bottles that are fully made from recycled plastic in the United States.
According to a Greenpeace report, Coke generates over 100 billion bottles of single-use plastic each year, while PepsiCo - with everything from its plastic drinks bottles to plastic snacks bags - uses 2.3 million metric tonnes of plastic over the same period.
PepsiCo CEO Ramon Laguarta told Reuters in an interview that by scaling up the SodaStream do-it-yourself sparkling water business it bought in 2018, that in part could help reduce the use of more than 200 billion plastic bottles by 2030.
Sodastream makes machines and refillable cylinders that let users make their own soda or carbonate water drinks at home.
