Strategic Growth in Food Manufacturing Investment: Navigating Opportunities with Care

This year marks the 48th edition of FOOD ENGINEERING’s Plant Construction Survey, a chance for industry professionals to share their insights about the past year in food and beverage manufacturing.

Last year, many respondents noted a “wait-and-see” strategy due to uncertainty surrounding the 2024 presidential election. Now, in 2025, the focus has shifted to economic worries. Factors like inflation and tariffs are making manufacturers more cautious about new projects.

Russ Schertz, an expert in industrial manufacturing at Black & Veatch, explains, “We’re observing a pause in advanced projects, even those that were already approved. This hesitation is influenced by uncertainties in funding and shifting market conditions. Inflation has slowed down, meaning companies can’t easily pass increased costs to consumers. Changes in commodity prices also add to the reluctance for big investments.”

Despite these concerns, food and beverage manufacturers are still forging ahead with new facilities. Since the start of 2025, over 30 major projects have been reported, particularly in the dairy sector. Just in the last few months:

– Chobani plans a $1.2 billion dairy processing facility in New York.
– California Dairies Inc. recently opened a processing plant in Bakersfield, Cal.
– Darigold has started processing milk in Pasco, Wash.
– Cayuga Milk Ingredients finished a $270 million expansion in New York.
– Tillamook launched an ice cream facility in Illinois, its first outside the Pacific Northwest.

The meat industry is also expanding, with Archer opening a second plant in California and JBS USA planning a $135 million sausage facility in Iowa. Walmart is developing a beef processing site in Kansas.

Cold storage is booming too. Frozen potato producers have set up shop in Idaho, and Americold opened a distribution center in Canada.

Rob Raney from Burns & McDonnell noted the ongoing investment in the sector: “We’re seeing multiple major projects announced monthly across the U.S. These include not just new constructions, but also expansions and equipment upgrades to enhance capacity. While new developments are strong, there’s a significant focus on optimizing existing networks, showing how companies are balancing growth with the need for cost management.”

The food and beverage industry remains resilient. Despite economic uncertainties, it continues to invest in smart, sustainable manufacturing practices. As companies adapt to a changing landscape, their ability to navigate these challenges will be key to future growth.

For more insights on the food industry, consider checking out reports from the USDA or industry analyses available from trusted news sources.



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