Food Dive recently shared “Four food trends that could define the rest of 2025,” outlining four dynamics reshaping the food and beverage industry: sliding packaged food sales under inflation and tariff pressure; smaller, more targeted M&A deals; the rise of new functional ingredients; and regulatory pressure from the Make America Healthy Again (MAHA) movement beyond artificial dyes. These shifts are unfolding against a backdrop of shrinking consumer spending, higher input costs, and growing expectations for healthier, more functional foods.
The challenges facing big food manufacturers in 2025 go well beyond a single financial quarter, according to the article in Food Dive. Analysts describe a whiplash environment where one disruption quickly gives way to another, whether it’s tariffs, commodity spikes, or shifting consumer demand. Even household names like Kraft Heinz and Conagra are revising forecasts downward, citing hundreds of millions in additional costs from tariffs and inputs like cocoa and eggs. Cost-cutting measures, including layoffs at General Mills, Post Holdings, and Brown-Forman, signal how deep the pressure runs across categories. And while some firms may see modest sales improvements later this year, Morgan Stanley projects more widespread restructuring across the CPG sector as topline growth stagnates.
“Four food trends that could define the rest of 2025” discusses how M&A activity in 2025 is defined less by mega-deals and more by strategic, mid-sized acquisitions that expand reach into growth categories. PepsiCo’s $2 billion purchase of Poppi, Hershey’s acquisition of LesserEvil, and Ferrero’s $3.1 billion buy of WK Kellogg reflect a clear focus on functional, better-for-you, and category-deep plays rather than broad diversification. Analysts like TD Cowen’s Robert Moskow note that “depth tends to beat breadth,” with focused portfolios offering stronger long-term success than sprawling conglomerates. While consumer pullbacks, food stamp cuts, and tariff uncertainty weigh on deal appetite, many food makers remain opportunistic—ready to acquire when valuations align with strategic needs. AMC Global’s foundational approaches like Awareness & Usage Research and Brand Stretch Research help brands to determine when existing equities have the right to expand into new territories and where strategic acquisitions may be necessary to fuel growth.
Food Dive also talks about what is facing food and beverage companies in terms of functional ingredients. With protein now ubiquitous, consumers are looking to the next wave of functional ingredients that promise benefits for gut health, skin, mood, sleep, and even brain health. The stakes are high: health-focused consumers represent $638 billion in annual food and beverage spending.
Market research becomes essential for products to keep up. AMC Global helps brands test new products and product updates with functional ingredients early, using tools at product launch like SampleTrak™ to measure trial and conversion and ResponseCash® PFU™ to capture real-world purchase feedback allowing quick innovation. And before products even hit the shelves, ProductPulse™can help test prototypes and refine ingredients, and MessageFilter™ can help hone the positioning, identify resonate claims for new functional benefits, and more. By pinpointing which benefits and claims resonate most with which consumer segments, brands can invest in the right functional innovations with confidence.
Regulatory and public health pressure on food makers is entering a new phase, and the Food Dive article talks about impacts on the industry. Following widespread commitments to remove artificial dyes, attention is now shifting to chemical additives, ultraprocessed foods, and even federal nutrition guidelines. Nearly every major manufacturer has pledged to comply with dye removal, while states are restricting sugary foods and beverages through assistance programs. The FDA’s work on defining “ultraprocessed” could set the stage for broader reformulation requirements. We talk more about this in our article for Prepared Foods, “Rush to Shift to Natural Colors Is Accelerating.”
For brands, the challenge is balancing regulatory compliance with consumer expectations. At AMC Global, we help companies anticipate the ripple effects of reformulation by capturing shopper reactions before and after products reach the shelf. Our research spans early concept and claim testing, creative choice modeling, in-market launch-phase solutions like ResponseCash® PFU™, and post-launch options such as Launch and Learn Communities—providing a full view of how ingredient changes are both expected and experienced. With the right research in place, brands can confirm that reformulated products still deliver on taste, color, and quality, while ensuring messaging around “no artificial dyes” or “cleaner ingredients” connects with real-world shoppers.
Taken together, these trends show just how critical it is for food and beverage companies to stay close to consumer expectations. This is something AMC Global’s research solutions make possible at every stage, from early concept testing to post-launch evaluation. To learn more about the trends, you can read the Food Dive article here: https://www.fooddive.com/news/food-beverage-trends-2025-snacking-sales/758748/ and to learn more about how AMC can help, you can reach us here: https://amcglobal.com/contact-us/
