2025 Trends in Food Manufacturing: Navigating Health, Sustainability, and Innovation

By Matt Riesenbach, Product Management Director, Manufacturing, ECI Software Solutions

Key Takeaways: 

• Health and transparency are driving major industry changes, with consumers demanding cleaner ingredients and better traceability — exemplified by the FDA’s ban on Red No. 3 dye and new traceability requirements coming in 2026 following recent food safety incidents.
• Environmental sustainability has become a critical business factor, with one-third of shoppers prioritizing it in purchasing decisions and two-thirds willing to pay more for eco-friendly products, leading manufacturers to adopt greener packaging and production methods.
• The industry faces significant workforce challenges, with potentially 2.1 million unfilled manufacturing positions by 2030, pushing companies to increasingly adopt AI and automation solutions for quality control, predictive maintenance, and supply chain optimization.

As we step into 2025, the food manufacturing industry is undergoing transformative changes driven by evolving consumer preferences, technological advancements, and regulatory shifts. These changes are shaping how food is produced, packaged, and delivered to meet the demands of an increasingly discerning market. Let’s dive into what will shape the year ahead for food manufacturers. 

Consumers want healthier ingredients

One of the most significant trends is the growing demand for healthier food options. Consumers are increasingly seeking products that cater to specific dietary needs and provide transparency into their production. In response, manufacturers have prioritized the use of fewer additives and preservatives while focusing on natural and minimally processed ingredients. Additionally, companies are ensuring their ingredient lists are clear and easy to understand – helping consumers find the transparency they seek. This shift aligns with a broader movement towards clean eating, allowing manufacturers to build stronger trust and loyalty among their customer base.

A significant development is the FDA’s ban on Red No. 3, a petroleum-based dye linked to carcinogenic risks. This dye is utilized in almost 3,000 red food products to give them their signature red coloring. Manufacturers need to identify alternative additives to maintain production continuity. These may include pomegranate juice, beet juice, or Red Dye No. 40.

Recalls require more traceability

In late 2024, consumers faced significant challenges, including a major McDonald’s recall due to an E. Coli outbreak and a widespread egg shortage caused by bird flu. Meanwhile, a study by the International Food Information Council revealed that consumer confidence in the U.S. food supply has fallen to 62%, a substantial drop from 70% in 2022. This confluence of factors is driving an urgent focus on transparency and traceability in food manufacturing for the year ahead. 

The FDA’s Final Rule on Traceability, set to take effect in January 2026, requires robust recordkeeping for specific food items, such as soft cheese and eggs, to enhance food safety and facilitate quick responses to potential issues. This increased recordkeeping is intended to help officials quickly trace problem batches and remove them from the market when there are food safety concerns. This will help mitigate the effects of food recalls and maintain safety throughout the food supply chain. To prepare, food manufacturers should implement software systems that will support the additional key data elements (KDEs) required at the specified critical tracking events (CTEs). 

Tools like Enterprise Resource Planning (ERP) systems are becoming essential for monitoring products from raw materials to distribution. ERP systems facilitate seamless compliance by enabling manufacturers to track batch numbers, manage inventory efficiently, and quickly identify and address problem batches. These tools also help reduce waste by optimizing lead times and ensuring materials are utilized before expiration.

Consumers using a greener lens

Eco-consciousness is becoming a cornerstone of consumer purchasing decisions. Approximately one-third of shoppers now consider sustainability a key driver in their buying habits and two-thirds are willing to pay more for eco-friendly products. Food manufacturers are responding by adopting biodegradable and recyclable packaging materials and implementing lighter packaging designs to reduce transportation costs and carbon footprints. 

In addition to packaging innovations, companies are also exploring the use of renewable energy sources in their production facilities and prioritizing sustainable sourcing for raw materials. By collaborating with suppliers who adhere to eco-friendly practices, manufacturers can further reinforce their commitment to sustainability. Moreover, some brands are introducing reusable or refillable packaging options, catering to consumers’ growing interest in reducing single-use plastics. These efforts not only appeal to environmentally conscious consumers but also help optimize operational costs, making sustainability a win-win strategy for businesses.

Embracing and AI and automation

The skilled labor shortage remains a pressing issue for food manufacturers. By 2030, the Manufacturing Institute estimates the industry will need to fill nearly four million new roles. Alarmingly, the study suggests over half — about 2.1 million positions — could remain unfilled. With the incoming administration, shifting immigration policy may further reduce the critical food manufacturing labor available. To address this challenge, companies are adopting automation tools and investing in upskilling their workforce. Automation reduces dependency on manual labor, while strategic recruitment efforts aim to fill critical gaps. These measures ensure manufacturers remain resilient despite workforce limitations, allowing them to continue meeting production demands.

Of course, it wouldn’t be a complete 2025 outlook without mentioning artificial intelligence. According to a 2024 survey by ABI, the top reason cited by global manufacturers to use GenAI, is to identify the root cause of production issues faster than currently possible, followed by the “faster creation of work instructions” and “improved workforce coding skill.” While AI is in its early days, manufacturers have begun to dip their toes in. AI is increasingly being utilized to enhance quality control, predict equipment failures, and optimize supply chains. These innovations enable manufacturers to achieve greater efficiency, reduce waste, and maintain high-quality standards across their operations. By integrating AI, companies can stay ahead in a competitive market and respond effectively to evolving challenges.

The future of food and beverage manufacturing

The food manufacturing industry in 2025 is poised for significant growth and adaptation. By focusing on health-conscious products, sustainability, advanced technology, and regulatory readiness, companies can meet the evolving needs of consumers while maintaining efficiency and compliance. The future of food manufacturing is not just about producing goods but about innovating responsibly and transparently.

Matt Riesenbach is the product management director at ECI Software Solutions, a global provider of cloud-based business management software and services. He has been with ECI Software Solutions and its Deacom ERP Software for Batch and Process Manufacturers for nearly 10 years.