The future of food: what you need to know for 2025

For a sector estimated to hit nearly $9.5 trillion by 2028, according to the Business Research Company, the future of the food and beverage sector looks bright. But as we move into 2025, it’s clear the industry is standing at a crossroads.

Shifting consumer demands, relentless global supply chain challenges, ambitious sustainability targets, and an increasingly complex regulatory landscape have set the backdrop for a transformation that can no longer be delayed.

If we want to keep feeding the world, the food sector must continue to reimagine how it grows and distributes food. So, what should it be gearing up for in 2025?

AI is on a steady path to cement its role as a transformative force across the food and beverage sector and agriculture. Real-time monitoring, resource efficiency and predictive analytics have the potential to enhance productivity and sustainability while improving raw material quality for the food industry. 

AI-driven precision farming has increased crop yields by up to 30% through optimised resource use. As of 2024, 15–20% of large US farms have adopted AI technologies including precision agriculture, autonomous machinery and predictive analytics according to AIMS Agriculture and Food. 

On the consumer-facing side, AI is making a difference in food safety, regulatory compliance, product innovation and margin expansion. For example, Coca-Cola made headlines with an AI-generated flavour line and retailers such as Kroger now use AI to analyse over 35 petabytes of customer data to enable hyper-personalised shopping experiences and to reduce waste. 

However, high costs, technical complexities, and ethical concerns about data transparency are slowing universal adoption. As AI becomes more commonplace, collaborative efforts are needed to enhance accessibility, transparency, ethics, and support smaller farmers and businesses while ensuring sustainability.

It is evident that the food, beverage and agri sectors are particularly at risk from climate change  and already experiencing disruptions due to changes in temperature and precipitation patterns and increasingly extreme weather events more generally. 

Sustainability commitments have been around for years now, but more than ever in 2024 companies were falling behind. As CDP reports, only 15% of food and beverage companies are on track to meet their sustainability goals, and 66% report they don’t have the financial resources to keep up with new regulations (DLA Piper). This is despite the increasing number of regulations and policies demanding accountability. 

Consumer sentiment also reflects this - PwC reports more than four-fifths of consumers willing to pay more for sustainability. However, the ‘’say-do’’ gap is still significant  willingness to pay varies by product, and due to inflation, this interest may not translate into actual higher spending.

This challenge to manage sustainability commitments, accountability and consumer sentiments is compounded by greenwashing. 

Moving ahead, companies will need to pivot from pledges to measurable action, or risk falling further behind as consumers and regulators demand accountability.

The Covid pandemic in 2020 highlighted the need to make the supply chains more adaptable and resilient. But since then, the food global supply chain has only become more complex with geopolitical conflicts and an increased incidence of natural disasters. 

2024 was the year digitalization of supply chains shifted from being optional to essential – blockchain, the internet of things and AI are revolutionizing efficiency, transparency and traceability. 

There has also been a shift in organisational perception. Rather than being seen solely as a support function, supply chain optimization is now considered a competitive advantage. 

For instance, according to a report by Deloitte, companies leveraging the internet of things and blockchain together saw supply chain efficiency improve by up to 30%. Retailers such as Walmart have adopted blockchain for food traceability, reducing the time it takes to trace a product from the farm to the store from seven  days to just 2.2 seconds according to case study highlighted by LF Decentralized Trust. 

Yet hurdles remain, including scalability, integration challenges and regulatory ambiguities. For digital transformation to deliver on its promise, companies need strategic pilots, early engagement with policymakers, and a focus on scalability that leaves no one behind.

All signs point towards increased volatility, whether it be the inconclusive COP29 or INC-5, or consumer shifts and environmental degradation - thus, resilience will be a key strategic factor for 2025. 

Building resilient supply chains, diversifying sourcing strategies and investing in technology to predict and respond to risks will be imperative. 

In 2025, resilience will not just be a buzzword signalling recovery, but it will encompass systems that can thrive under pressure, ensuring sustainability, security, and profitability even in uncertainty. 

At the Future of Food conference in May 2025, we will be exploring how we can collectively build systems that secure sustainability, profitability, and equity in an unpredictable world.

As smart farming technologies such as robotics and AI gain momentum, 2025 will be a tipping point for adoption, and investment in ag-tech. The global smart farming market is projected to hit $117bn by 2034 according to BIS Research, but the big question as we move forward is: how can we ensure technology empowers farmers rather than creating dependency?

Given that the average age of US farmers is 58 years, we will also need to address how we can collectively empower the next generation of farmers to embrace technology whether it is through investment in upskilling, on the farm support or modernization. 

This will be a key focus for us at the Future of Food USA conference in May 2025. 

If 2024 was about preparing for change, 2025 will be about adapting to it. 

In 2025, we can expect regulatory frameworks to tighten further. The EU’s Deforestation Regulation (EUDR) will be effective in 2025. For bigger companies this will mark a significant shift from voluntary sustainability initiatives to mandatory accountability, and for smaller entities this could mean a two-tier system that potentially excludes them from European markets.

In the US, 2025 will bring significant changes – with a new farm bill under a new administration, and predicted changes in export markets and labour availability. Proposed tax cuts, decreased labour supply and tariffs on imported goods may all be inflationary. 

The food and beverage sector must develop strategies not only to cope with changing regulations, but also support producers through these changes that may disproportionately affect small holders globally. Without careful consideration, there’s a real risk of deepening inequalities. 

Despite challenges, there is also a real opportunity for companies to align their practices with global sustainability and regenerative goals. In 2025, continued commitment, collaboration and technological innovation will be the key to meaningful progress. 

The food and agriculture sectors are at a tipping point, where innovation needs to meet real accountability. Through bold actions, technological innovation, and cross-industry collaboration, the sector can turn today’s challenges into tomorrow’s successes. As 2025 unfolds, the leaders will be those who don’t just adapt to trends but set them, driving real impact in a world that’s anything but predictable.