As we step into 2025, here’s CFBN’s take on the key topics and trends poised to shape the food and beverage industry this year. 

Global Supply Chains & Import Tariffs 

What will happen with import tariffs on goods from Canada, Mexico and China – nations that play significant roles in U.S. agricultural trade in both import and export of food and beverages? We will be watching this closely. 

Immigration Policies and Effects on Workforce 

Changes to the immigration rules could reverberate across the food and agricultural workforce, which relies heavily on undocumented immigrant labor. How will these policies influence industry’s capacity to keep up with demand? Will labor challenges further drive the push towards manufacturing automation? 

Beyond Buzzwords: Food Tech and Ag Tech 

Food and ag tech, long-promised disrupters, are finally delivering on their potential. New technologies and approaches are revolutionizing how food is grown, processed, and distributed. Precision fermentation, for example, leverages microorganisms to produce animal proteins like milk and meat without involvement of livestock. These advancements are poised to transform the global food system, addressing critical challenges such as food security, environmental sustainability, and consumer demand for healthier and more ethical food choices.

Generational Transition in Food Manufacturing? 

Family-owned food manufacturers are facing a pivotal moment as baby boomer owners near retirement, often without clear succession plans. This has accelerated efforts to prepare for next-generation leadership within families, or to explore sales of businesses to larger corporations. These transitions present both challenges and opportunities for family businesses, with the potential to redefine the landscape of family-owned businesses and reshape the industry. 

Beyond transitions within family businesses, the broader M&A market is expected to gain momentum this year. We will keep an eye of what deals are going to be on the table.  

Health, Nutrition, and Food Policies

The nomination of Robert F. Kennedy Jr. for the Department of Health and Human Services has sparked discussions around his plans for the food industry. Kennedy’s critiques of ultra-processed foods and large food corporations suggest potential regulatory shifts, but specifics are unclear

Evolving Health Trends 

Healthy foods will be top of mind this year, with the state of California recently announcing measures targeting ultra-processed foods. Meanwhile, the FDA is set to redefine what qualifies as “healthy”. Consumer preferences are also shifting, partly fueled by the growing availability of GLP-1 medicines, which could disrupt the demand for snacks and impact portion sizes, while also creating new opportunities and markets. 

The Sustainability Balancing Act 

Sustainability continues to be a hot topic: how to create a sustainable food chain and how to fairly distribute the costs across the supply chain. Will consumers pay more if it means farmers are rewarded for eco-friendly practices? On a global scale, the U.S. is likely to take a less stringent approach to climate efforts under the new administration, while the EU pushes forward stricter ESG-reporting regulations. 

The Price Pressure Puzzle 

Inflation and pricing woes are top of mind for both consumers and industry stakeholders. Every trend we’ve highlighted – from tariffs to sustainability – has the potential to influence consumer prices. How will businesses navigate these and other pressures while maintaining profitability and consumer satisfaction? 

This is just the beginning of the conversation – we’d love to hear your thoughts. What do you think will be critical in 2025? Share your thoughts and join the discussion! Cheers to a vibrant 2025!