Major change could be in store for the food manufacturing industry this year.
Regulators are more closely watching over the industry, including the new federal traceability rule and the Food and Drug Administration’s move this month to ban red food dye No. 3. At the same time, heightened tariffs could also impact food manufacturers’ and their supply chains, pushing them to diversify suppliers and localize when possible.
Read on for some of this year’s biggest manufacturing trends, including how companies are navigating both the challenges and opportunities on the horizon in the months ahead.
Increased attention to food safety
“Food safety and traceability have become urgent priorities after several high-profile contamination cases, particularly the recent outbreaks at McDonald's and Boar’s Head,” said Stephen Dyke, principal solutions consultant manager at FourKites, working with brands like Coca-Cola and Kraft Heinz.
Dyke said these incidents are pushing food and beverage manufacturers to implement more rigorous monitoring systems and supplier audits.
“The focus has shifted from reactive measures to preventive controls, with companies investing in continuous monitoring technologies rather than point-in-time inspections,” Dyke said.
A key turning point is the FDA’s Requirements for Additional Traceability Records for Certain Foods, or Food Traceability Final Rule, which will be enforced in January 2026. It requires detailed recordkeeping for certain foods, aimed at helping identify the source of foodborne illness outbreaks and remove contaminated foods from the market faster.
“Businesses must start preparing in 2025 to comply with the additional recordkeeping requirements for entities that manufacture, process, pack, or hold foods on the Food Traceability List, like specific cheeses, eggs, cucumbers, herbs, and leafy greens,” said Leanne Blommaert, manager of food research and development at NSF.
In addition to heightened traceability, manufacturers are doubling down on ensuring their hazard analysis critical control point systems and food safety certifications are up to date, especially as retailers and governments hold them to more stringent requirements, Blommaert added.
“Manufacturers will continue to prioritize certification to food label claims to earn the trust and loyalty of consumers with healthy lifestyles and food allergens,” she said.
Moving toward sustainable processes
Sustainability continues to dominate many food manufacturing priorities, driven by consumer demand and global regulations.
“Climate change is forcing companies to rethink their entire approach to manufacturing,” said Francisco Martin-Rayo, co-founder and CEO of Helios, a company that predicts climate-driven agricultural disruptions affecting food manufacturing and supply chains. Now, sustainable practices are an immediate need instead of a ‘nice-to-have’.
Major manufacturers are heavily investing in sustainable manufacturing, like Nestlé’s $1 billion initiative to source coffee more sustainably or Unilever’s efforts to cut scope 3 greenhouse gas emissions by 42% by 2030.
Some manufacturers are adopting water and energy-efficient technologies, as well as AI, to boost efficiency and reduce waste. Others are reformulating products to use less resource-intensive ingredients, such as plant-based alternatives to palm oil or lab-grown cocoa, Martin-Rayo said.
Beyond the ingredients, manufacturers are also producing more sustainable packaging by moving away from traditional plastics and towards eco-friendly materials, including compostable and biodegradable materials, Blommaert said.
“Manufacturers are looking to reduce packaging materials and plastic use by lightweighting packaging, using more plant-based materials, and reducing the use of multi-layer packaging, which is more challenging to recycle,” Blommaert said.
Restaurantware, a company working with manufacturers to provide customized sustainable servingware and packaging, has offered over 2,000 PFAS-free plant-fiber products. Their packaging is made from eco-friendly materials like sugarcane fibers, bamboo paper and bioplastics.
The company has launched a “Ship in Own Container” program that reduces waste by eliminating outer boxes for high-volume products, which saves over 120,000 pounds and 1.1 million square feet of cardboard annually, founder and CEO Jamil Bouchareb said.
“It is about creating value for stakeholders while ensuring the preservation of resources for future generations,” Bouchareb said. “By aligning with corporate partners’ sustainability goals and developing cutting-edge eco-conscious solutions, we demonstrate that environmental stewardship and business success can go hand in hand."
Localizing the supply chain
While supply chain challenges affect many industries, food manufacturers face unique pressures around temperature control and timing, Dyke said.
“Products require specific temperature ranges during transport and storage, adding complexity to standard logistics operations,” Dyke said.
The timing element is also critical. “Manufacturers can't simply hold extra inventory as a buffer since products have limited shelf life,” Dyke added. “These factors create a much tighter operating window than most other manufacturing sectors, requiring more precise coordination across the supply chain.”
This is one factor pushing many food and beverage manufacturers to move production closer to their main markets.
“In 2025, we’re going to see more food manufacturers turning to nearshoring and friendshoring to reduce risks from climate disruptions and geopolitical uncertainty,” Martin-Rayo said. “Shorter, more regional supply chains will improve reliability, but may come with higher costs initially.”
President Donald Trump’s tariff threats have forced manufacturers to reassess their supply chains and explore domestic manufacturing options, said Oisin Hanrahan, CEO and co-founder of Keychain, a CPG manufacturing database used by brands like Cadbury.
“Some companies are already stockpiling ingredients sourced from overseas or reformulating products that they usually import with domestically sourced materials,” Hanrahan said. “Others are turning to dual sourcing to reduce reliance on a single vendor and better navigate any volatility.”
