News Bites – June 2025
Home Cooking Reaches Post-Pandemic High, Driven by Budget-Conscious Shoppers
Campbell’s meals and sauces are thriving as inflation pushes more consumers to cook at home and seek budget-friendly ingredients. However, snack sales fell 8% in Q3, with brands like Goldfish struggling in a highly competitive, selective market. Sales in the meals and beverages segment rose 15%, aided by Rao’s acquisition and broad consumption growth across income levels. Meanwhile, Campbell’s is monitoring tariffs and exploring sourcing alternatives to limit potential earnings impact.
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Wellness Trends Fuel Dairy’s Surprising Comeback
Dairy milk sales are rising for the first time in decades, driven by wellness trends and strong value amid inflation. Whole and raw milk, yogurt, and cottage cheese are seeing double-digit growth as consumers prioritize protein and gut health. Meanwhile, plant-based milk sales dropped, and innovation is expanding dairy into new formats like clear drinks and probiotic sodas. To sustain growth, the dairy industry must invest in consumer education, tech, and unlocking high-value nutrients like lactoferrin.
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Sugar Prices Drop: What It Means for Food and Beverage Manufacturers
Sugar prices have dropped to their lowest level since June 2021, driven by strong global supply and improved weather conditions. Brazil, Thailand, and India are boosting output, while farmers shift from ethanol to sugar, easing supply concerns further. Although prices may keep falling short-term, volatility remains due to climate risks, economic shifts, and rising global demand. Food manufacturers welcome relief, but tariffs, taxes, and high operating costs may limit the benefit of cheaper raw sugar.
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Venture Capital Pulls Back from Food Tech in Favor of AI
Food tech funding fell 50% in Q1 as investors prioritize AI, which captured 70% of total venture capital. Early-stage food startups face tougher conditions, with declining valuations and fewer investors compared to 2021. However, specialized alternative protein companies like Vivici and Liberation Bioindustries continue attracting funding for innovative infrastructure. To secure capital, food tech startups must show strong market traction, efficiency, and alignment with trends like sustainability and health.
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FDA Greenlights First Cultivated Seafood for U.S. Market
Wildtype became the first company cleared to sell cultivated seafood in the U.S., debuting its salmon at a Portland restaurant. Although some states banned lab-grown meat, Wildtype sees its technology as a sustainable complement to traditional agriculture. Meanwhile, U.S. cultivated meat startups face funding and scaling challenges despite growing consumer interest from flexitarian eaters. Still, industry leaders like Wildtype and GFI urge collaboration with traditional meat companies to accelerate growth and public acceptance.
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Check out last month’s News Bites: News Bites – May 2025!
