While we don’t know exactly what this year will hold, our industry insiders are here to help you navigate change and unlock opportunities.
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Those of us reading the signs can see the food and beverage (F&B) industry at a crossroads. Consumer demands for sustainable and transparent practices are intensifying, while emerging technologies and shifting regulations present both risks and possibilities. So what does this mean for the not-too-distant future? Depending on your perspective, it can mean a year filled with challenges or opportunities—or both. But as Louis Pasteur once said, “fortune favors the prepared.” With that approach in mind, here are our 2025 predictions.
New leaders and trends emerge early on
Although there’s a lot of regulatory uncertainty at the moment, F&B brands can use this transition period to take the lead. Rather than wait and see which states, countries, and/or governing bodies will outline expectations surrounding ingredients, additives, environment, social, and governance (ESG), you can set the new standards. All while earning consumer trust and a powerful competitive advantage.
The same goes for innovation because there’s no indication of new product development (NPD) slowing down in 2025. If anything, brands who are still clinging to legacy R&D models should be prepared to transition to more agile models and—no surprise here—capitalize on the artificial intelligence (AI) trend. If you’re still unsure about how this technology fits into the consumer goods’ industry, then you’ll want to dive into this ebook and our collective of real-world applications for NPD programs.
Predict then plan for success
If you’re still wondering why you should download this resource, here’s a quick overview of what you can expect to learn.
- How to increase transparency throughout the lifecycle of your products for maximum leverage
- How to apply AI in order to fine-tune and scale up production
- How to stay one step ahead of coming international regulations and enforcement
- How to excel in a “new era” of supply chain disruption
A SNEAK PREVIEW
1. ESG Pressure Builds on all Fronts
A PATH TO BOTH EXPECTATION AND OPPORTUNITY
A wave of transformation is underway as environmental, social, and governance (ESG) expectations intensify. Driven by regulatory demands, consumer scrutiny, and competitive pressures, brands are reimagining their operations to prioritize ESG compliance. The shift is significant—a study by TraceGains found that nearly two-thirds of F&B brands are now willing to prioritize ESG-compliant production to meet consumer and regulatory expectations.
This presents brands with a powerful opportunity to shape lasting positive change, foster trust, and drive innovation in ways that resonate deeply with today’s conscious consumers—particularly since the global F&B industry poses an outsized threat to the planet’s health, contributing heavily to greenhouse gas emissions.
Food waste constitutes 30-40% of the US food supply, totaling around 40 million tons annually. Agriculture alone consumes 70% of the world’s freshwater, while animal agriculture is responsible for 11% of global greenhouse gas emissions. These statistics underscore the pressing need for ESG initiatives within the sector, as brands face both an environmental imperative and an opportunity to innovate for a more sustainable future.
Why ESG matters in 2025
Consumers are increasingly prioritizing sustainability in their consumption practices, as 85% say they are experiencing the disruptive impacts of climate change in their lives. A global consumer survey by PwC also found that even while cost-of-living and inflationary concerns weigh, they are nevertheless willing to pay 9.7% more for sustainable goods. And 46% say they are already buying more sustainable products as a way to reduce their impact on the environment.
To that end, sustainability is now becoming essential to competitive advantage, and brands are realizing the dual benefits of prioritizing ESG. Not only does it align with regulatory trends, but it also strengthens consumer trust and market positioning.
“Brands now view ESG not just as compliance, but as a means to foster trust and loyalty. By prioritizing ESG-compliance ingredients, companies are positioning themselves to win consumers’ hearts while reducing environmental impact.”
— John Thorpe, Director of Product Management
More resources for a successful year
How to Conquer the 12 Most Common NPD Challenges in CPG
The Strategic Role of Traceability in a Shifting Regulatory Landscape
