Frito-Lay, the snack giant owned by PepsiCo Inc., says it is pulling most of the biodegradable packaging it uses for its Sun Chips snacks, following an outcry from consumers who complained the new bags were too noisy.

Touted by Frito-Lay as 100% compostable, the packaging, made from biodegradable plant material, began hitting store shelves in January. Sales of the multigrain snack have since tumbled.

Frito-Lay...