The global food giant said on Monday that two-thirds of its single serving drinks will have 100 or fewer calories from added sugar by 2025.
PepsiCo said the change was driven by shifting consumer needs and new dietary guidelines from the World Health Organization.
Many customers have tapered their intake of high-sugar, high-calorie soft drinks from Pepsi and Coca-Cola due to worries about sugar consumption. But at the same time, diet beverages have also been falling out of favor as consumers worry about chemicals in their drinks.
Both Pepsi and Coke have been trying to adapt to changing consumer tastes.
Pepsi announced last year it would stop using the artificial sweetener aspartame due to declining sales and health concerns. Scientific studies have linked artificial sweeteners to obesity and diabetes.
But PepsiCo reintroduced aspartame to some products in September, saying consumers wanted more choices.
Along with its commitment to cut calories in its sugary drinks over the next decade, Pepsi also said it would reduce levels of saturated fat and sodium in the majority of its products.
"The company will continue to refine its food and beverage choices to meet changing consumer needs by reducing added sugars, saturated fat and sodium levels in its product portfolio," Pepsi said in a statement.