PepsiCo has trimmed its annual sales growth target as consumers cut back on fizzy drinks and snacks, and switch to cheaper own-label alternatives.

The FMCG giant, which had previously forecast a 4% rise in organic sales, now expects to grow in a low single-digit range for the year.

In the quarter to 7 September, net sales fell 0.6% to $23.32 bn (£17.82bn), below estimates of $23.76bn (£18.16bn).

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It comes as shopping habits have changed amid the cost-of-living crisis, with consumers purchasing smaller portions and buying less from convenience stores, where a bigger portion of PepsiCo’s sales are typically from.

PepsiCo chief executive Ramon Laguarta told Reuters: “The cumulative impacts of inflationary pressures and higher borrowing costs over the last few years have continued to impact consumer budgets and spending patterns.”

While the slowdown in sales has been predominantly impacted by changing behaviours in the 7up and Mountain Dew owners North American market, its international markets, including Latin America, China and Europe have also experienced a downturn in volumes.

However, the packaged food firm’s profits remained steady amid price increases, cost controls and measures to drive efficiencies across the business, while PepsiCo maintained its full-year adjusted profit forecast.