Unlocking Success in the Food & Beverage Industry: Essential Insights from Grassi’s 2025 Survey | Long Island Business News

The food and beverage industry in New York and New Jersey is stepping into 2025 with a sense of hope and determination. A recent survey by Grassi revealed that many business leaders in this sector are using technology and refining their operations to face economic challenges. This optimism stems from a strong performance in 2024, where over two-thirds of companies noted revenue growth, with some even seeing increases of around 20%.

Positive Trends in 2024
As 2024 wrapped up, the mood within the industry was uplifting. Despite challenges, 87% of those surveyed think revenue will continue to grow in 2025, and 83% predict profits will also rise. Larger companies, in particular, are leading this charge by expanding their geographic reach and enhancing their sales strategies.

Economic Concerns Ahead
However, it’s not all smooth sailing. About 42% of respondents flagged economic uncertainty as their top worry. Rising interest rates and tariffs are also concerns, affecting operating costs. In fact, 90% of companies expect to see costs climb by 3-5% in 2025. To adapt, many are sourcing cheaper suppliers, renegotiating contracts, and, for some, passing these costs onto consumers by raising prices—a trend seen in 85% of businesses last year.

Investing in Technology
Technology is key to growth. Many leaders see tools like artificial intelligence and predictive supply chain management as vital. Two-thirds plan to increase their use of these technologies in 2025. They’re also looking at automation for manufacturing and supply chain visibility to boost efficiency. As a sign of the times, over half of the companies expressed concern about data security, translating to increased investment in cybersecurity measures.

Workforce Challenges
On the workforce front, challenges persist. Staffing concerns may have lessened since the pandemic, yet 57% of industry leaders are still worried about hiring and retaining employees. Companies are responding by offering flexible schedules and financial incentives to attract talent. Notably, those that reported strong profit growth in 2024 often expanded their workforce and adopted more automation.

Strengthening Supply Chains
Supply chain risks remain a significant hurdle, with 63% of successful companies highlighting it as a critical issue. To counter these challenges, many businesses are diversifying their suppliers and adopting automated inventory systems. This shift aligns with the trend towards bulk purchasing and better inventory tracking, helping to manage costs amid market volatility.

Focus on Capital Investment
A common saying in business is “you have to spend money to make money,” and this holds true for the food and beverage sector. About 83% of companies are planning to raise their capital spending in 2025, focusing on production expansion and technology upgrades. These investments are aimed at improving efficiency and developing innovative products.

Looking Ahead
As industry leaders look to the future, there are opportunities for growth. Expanding into new markets and refining strategies are high on the agenda. Yet, they must also stay vigilant about challenges like rising labor costs and increasing competition. Economic uncertainty and high interest rates remain pressing concerns.

In summary, the food and beverage industry is gearing up for a dynamic year ahead. By embracing innovation and investing wisely, companies can navigate the uncertainties of 2025. The path forward includes being flexible, leveraging new technologies, and maintaining a keen eye on costs while exploring fresh opportunities.

For more insights, check out Grassi’s 2025 Food & Beverage Survey here.

Check out this related article: ISU Dining Ensures Your Safety: Ongoing Measures in Response to Recent Food Poisoning Reports