Now that 2024 is in the rearview, we wanted to share a few quick thoughts that highlight pivotal changes and trends in the industry. Below, you'll find a mix of both broad and specific evolutions in the food and beverage market that are certain to influence the business environment in 2025.
Let's have a look.
Nestlé and PepsiCo Top Consumer Goods Rankings
Nestlé and PepsiCo retained their positions as the leading food and beverage companies in the US, based on revenue analysis. Their dominance reflects strong brand portfolios and innovative strategies in response to consumer demand for healthier, sustainable products.
Major Restaurant Chains Struggle with Closures
Several restaurant chains, including long-standing brands, closed multiple locations due to financial pressures from rising operational costs, inflation, and changing consumer behaviors. The closures have left a significant mark on the industry as chains re-evaluate their business models to remain competitive.
McDonald's Expands Plant-Based Offerings in the US
McDonald’s continued to expand its plant-based menu offerings in 2024, catering to the growing demand for vegetarian and vegan options. This move is part of a broader trend within the quick-service restaurant sector to embrace plant-based ingredients as a way to meet changing consumer preferences for sustainability and health.
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California Passes Food Labeling Laws
California introduced new regulations mandating clear, uniform food labeling standards for ingredients like sugar, fat, and sodium. These laws aim to help consumers make healthier choices by offering more transparent nutritional information, influencing food manufacturers across the US.
Inflation Continues to Impact Food Prices
In 2024, the food and beverage industry saw continued inflationary pressure, with rising prices for key ingredients such as meat, dairy, and grains. Manufacturers and retailers adapted by introducing more affordable product options and exploring cost-effective supply chain strategies.
Food & Beverage Companies Invest in Sustainability Initiatives
Several major US food and beverage companies ramped up investments in sustainability in 2024, focusing on reducing carbon footprints and packaging waste. These companies pledged to achieve net-zero emissions by 2035 and committed to sourcing ingredients from sustainable, ethical sources.
New York State Bans Artificial Colors in Foods
New York became the first US state to ban the use of artificial food colors in certain consumer products. The legislation was designed to reduce the health risks associated with food additives and align with growing consumer demand for more natural and transparent food options.
Retailers and CPGs Respond to Consumer Health Trends
The demand for functional and wellness-focused foods surged in 2024, as consumers increasingly prioritized health-conscious products. Retailers and consumer packaged goods (CPG) brands adapted by introducing items rich in probiotics, plant-based proteins, and functional ingredients aimed at boosting immunity and mental clarity.
PoLoPo Expands Molecular Farming with Field-Cultivated Protein-Producing Potatoes
PoLoPo, a molecular farming company, transitioned from greenhouse cultivation to field planting of genetically modified potatoes that produce high levels of protein. This advancement is part of PoLoPo's effort to provide cost-effective alternatives to egg protein, especially amidst rising egg prices.
FDA Updates "Healthy" Claim Definition
The FDA revised the definition of the "healthy" nutrient content claim on food packaging to reflect updated dietary guidelines and current nutrition science. This change aims to help consumers easily identify nutritious foods and encourage manufacturers to create healthier products. Foods now need to meet stricter limits on saturated fat, sodium, and added sugars to carry the "healthy" label.
