Essential Insights for Food and Beverage Industry Stakeholders: What to Expect in 2025

The food and beverage industry is changing fast. Producers and investors are watching these shifts closely, especially as we look towards 2025.

One big trend is the rise of GLP-1 medications. More consumers want healthier food and drinks. This creates opportunities for companies that focus on better nutritional choices. Products with higher protein and lower sugar are seeing increased demand. People are also becoming more aware of ultra-processed foods, leading some to change their diets. Experts believe these trends will continue to grow this year, which might challenge traditional packaged food companies to rethink their recipes.

Artificial Intelligence (AI) is also shaking things up. Food manufacturers are using AI to improve supply chains and speed up product innovation.

With trends cycling rapidly, large consumer packaged goods (CPG) companies are seeking new revenue streams through mergers and acquisitions. Last year, we saw major deals like Mars buying the maker of Cheez-Its, Kellanova, for $36 billion, and PepsiCo acquiring better-for-you snack brand Siete Foods for $1.2 billion. These moves show where companies are investing their money.

Alcoholic beverage producers face a challenge as younger drinkers consume less than previous generations. Companies like AB InBev and Molson Coors are adjusting their product lines to attract these customers by exploring new categories such as nonalcoholic cocktails and energy drinks.

This year, we can expect to see significant developments in the food and beverage sector. Keeping an eye on these trends will be crucial for anyone involved in the industry.