Food Industry Braces for Impact as Tariffs Loom
As the March 4 deadline for potential 25% tariffs on Canada and Mexico approaches, major food and beverage companies like Mondelēz, Conagra, and Ingredion are preparing contingency plans to offset rising costs through price adjustments, promotions, and supply chain shifts. While some companies, like General Mills and Coca-Cola, anticipate minimal impact due to domestic sourcing, others—such as Diageo and Mondelēz—warn that tariffs could significantly disrupt operations and profits. With 76% of consumers planning to adjust shopping habits in response to higher prices, the food industry faces growing uncertainty over costs, supply chains, and consumer spending behavior.
Learn More
Smarter Packaging: AI and Robotics Drive Supply Chain Innovation
AI and robotics are transforming the packaging industry, optimizing supply chains, reducing waste, and enhancing automation, though high costs and implementation challenges remain. Experts at Packaging Innovations 2025 emphasized the need for targeted AI applications, such as toothpaste recycling detection and vision-based sorting, while cautioning that AI isn’t always the best solution for every problem. Businesses looking to integrate AI should start small, anticipate future market needs, and act quickly to stay competitive in an increasingly automated industry.
Learn More
GLP-1 Users Cut Back on Snacks, Reducing Grocery Purchases by 6%
The rise of GLP-1 medications like Ozempic and Wegovy is reshaping grocery spending, with households cutting food purchases by 6% on average, and higher-income households reducing spending by nearly 9%, particularly on calorie-dense, processed snacks like chips and cookies. While some companies, like Hershey, Nestlé, and Conagra, are adapting by launching GLP-1-friendly products, the shift in consumer demand is pressuring CPG brands to rethink their offerings and marketing strategies. With the global obesity drug market projected to hit $105 billion by 2030, food manufacturers are increasingly focused on catering to changing dietary habits driven by weight-loss drug adoption.
Learn More
Soaring Prices, Soaring Sales: Egg Demand Surges Despite Inflation
Despite high egg prices driven by avian flu, U.S. egg sales surged to $2 billion in January, as consumers continue to prioritize affordable, protein-rich foods. The Trump administration’s pause on agency communications and staffing changes have delayed regulatory decisions, potentially impacting the government’s response to the outbreak, while food and animal rights groups are urging the CDC to take action. Meanwhile, retailers are exploring alternative promotions, such as bundling discounts on complementary items, to maintain consumer interest without discounting eggs directly amid short supply and rising costs.
Learn More
Reformulating for the Future: CPG Strategies for Food Additive Changes
CPG companies are leveraging AI-driven supply chain software, like Blue Yonder, to navigate new food additive regulations and predict future demand as bans on ingredients like Red No. 3 take effect. With statewide restrictions and shifting consumer perceptions, businesses must reformulate products while ensuring stable ingredient sourcing, as competing companies seek alternative suppliers. By using AI to forecast costs and market demand, companies can strategically test reformulated products in local markets before scaling nationally, balancing compliance, cost, and consumer expectations.
Learn More
