Food

Food

The future of food depends on tackling the challenges of supply chain volatility, global trade and changing perceptions of health and sustainability.

What’s going on

The food industry is evolving rapidly. The impact of GLP-1 medications on consumer behaviors, the risk of protectionist tariffs and inflation-related cost pressures pose risks for food companies. Meanwhile, social media unlocks new opportunities for consumer engagement, precision fermentation presents new possibilities for ethical innovation and AI offers novel pathways for both cost reduction and growth. Now more than ever, businesses must continuously reinvent how they operate.

5 ways the food industry is changing

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Conscious eating is evolving with GLP-1

GLP-1 medications, originally used to treat diabetes and now approved for obesity, are reshaping macro consumption patterns as appetite suppression shifts consumer habits at scale. With a vast addressable market for both conditions, food companies face risk over-indexing on sugary products and new opportunities to offer nutrient-dense options to a growing health-conscious audience.

Consumer are craving meaningful connection

Social media is transforming how people discover and engage with food brands, with platforms like Instagram and TikTok driving food trends. As over 65% of consumers become more intentional with their social media use, they seek meaningful interactions rather than passive content. To stay relevant, successful brands will replace traditional campaigns for authentic engagement.

AI is reshaping the future of the food industry

AI is reshaping the food industry, impacting 44% of working hours by automating tasks and improving efficiency. Beyond cost savings, AI supports growth by rapidly analyzing trends, enabling more efficient product planning and supply chain optimization. As AI-generated ads spark backlash, hesitancy around decision-making lingers, and IP concerns rise.

Consumer are seeking clean labels

Wellness trends have shaped the food industry, but now a new wave of political and consumer focus is on synthetic ingredients. “Clean labels” and ingredient transparency are prioritized over calorie counting and traditional health categories. Brands are reformulating to eliminate synthetic dyes and additives, responding to consumers seeking trust and authenticity in their food choices.

Tariffs and stretched consumers are squeezing margins

The food industry faces eroding margins from proposed tariffs and a financially stretched consumer. Meanwhile, economic disparities are splitting consumer behavior: higher-income groups trade down to casual dining, while lower-income households opt for more at-home meals and private labels. Inflation, including QSR price hikes, is forcing brands to refine value offerings.

GLP-1 drugs are transforming consumer behavior, making nutrient-dense products a necessity, not just a trend. To stay competitive, brands must treat better-for-you products as essential—not just optional—to meet the evolving demands of consumers.

59.9%

of consumers want long-term support with their physical health

Mass-market ads alone won’t cut it. Foster authentic, two-way engagement to build trust and adapt to consumer needs—driving deeper connections and better business results.

62%

of consumers say trust is an important factor to them when choosing to engage with a brand

Billions are invested into AI annually, but sustained impact comes from successful integration. Focus on interconnected value chain reinvention to drive meaningful business outcomes.

60%

of consumer goods executives anticipate incremental revenue growth of ~20%-39% through AI adoption over the next three years

Healthy eating is now politically mainstream, and increased scrutiny means food companies must accelerate their shift to natural ingredients—or face regulatory risks.

80%

of surveyed individuals intend on maintaining or increasing their spending on health and fitness

As some consumers trade down to save, companies must act to prevent market share loss. Tackle tariffs and inflation head-on, offering value-driven solutions that keep shoppers engaged and loyal.