Year-End Review by Food Ingredients First: Innovations in the Food and Beverage Industry Under Regulatory Pressure and Supply Chain Disruptions
In this context, innovations have ceased to be an optional tool for growth and have become a means of survival. Alternative proteins have approached price parity, fermentation and artificial intelligence have moved from pilot projects to the industrial phase, and product reformulation to meet 'clean label' demands has sharply accelerated. Simultaneously, scrutiny over sustainability claims has intensified, animal welfare has become part of the regulatory agenda, and food security is increasingly discussed at the policy level.
January
Plant-Based Technologies, AI, and Regulatory Signals
At the beginning of the year, the main focus was on alternative proteins and new production approaches. Cargill noted a growing interest in mycoprotein, fermentation, and global flavor solutions as ways to make plant-based products more accessible and cost-effective.
The regulatory background intensified after the FDA's decision to ban synthetic dye Red 3, following decades of debates over health risks. Manufacturers were given a limited time to reformulate, signaling a major review of formulations.
Simultaneously, attention was drawn to the kopi luwak coffee scandal: PETA's investigation increased pressure on brands regarding animal welfare and supply chain transparency.
In the UK, the government announced substantial investments in AI, viewing digitization as a tool to enhance food security and efficiency in the F&B sector.
February
Trade Risks and Structural Deals
The industry was preparing for new US trade tariffs that threatened to increase costs and disrupt agricultural supply chains. Experts warned of menu, formulation, and pricing strategy reviews.
Amid pressure on commodity markets, the ISM and ProSweets exhibitions showed a shift in focus towards cocoa-free chocolate, functional ingredients, and reducing dependency on scarce resources.
A significant event was the dsm-firmenich deal to sell a stake in Feed Enzymes Alliance for €1.5 billion, signaling consolidation and portfolio reviews in the feed and livestock segment.
March
EU Retaliatory Measures and Increased Regulatory Pressure
The European Union announced retaliatory trade measures against the US worth €26 billion, including agricultural products from poultry to dairy. This increased uncertainty for cross-border trade.
At the Natural Products Expo West, organic and health were at the forefront, and discussions about processed foods and industrial agriculture became more politicized.
In the US, pressure on synthetic food additives intensified, while in the EU, activists pushed for a ban on industrial octopus farming, highlighting the expanding scope of animal welfare regulations.
April
Digitalization of Supply Chains and Combating Fraud
The rise in food fraud cases prompted companies to more actively implement digital control and traceability tools. Simultaneously, the FDA announced new restrictions on synthetic dyes, accelerating the transition to natural alternatives.
Nestlé and ofi launched the largest cocoa agroforestry partnership, demonstrating an attempt to stabilize supplies and reduce environmental risks.
May
Reformulation and Alternative Proteins
Manufacturers faced practical challenges in switching to natural dyes, from color stability to cost. The IFFA exhibition confirmed that cultured meat, fermentation, and clean labels are becoming strategic directions rather than experiments.
June
Dairy Innovations and Logistics
PLMA in Amsterdam showed growing interest in hybrid dairy products and functional ingredients. At the same time, research in the field of yogurt and fermentation promised cost reduction and extended shelf life.
Experiments with drone delivery and increased citrus volatility highlighted how logistics and climate impact the F&B business.
July
Transparency and AI
Switzerland introduced mandatory labeling of animal products indicating painful procedures, increasing consumer information requirements. Meanwhile, AI became a key tool for accelerating R&D and trend analysis.
August
Proteins, Deals, and Vertical Farming
ADM and other players expanded their plant protein portfolios. Keurig Dr Pepper's acquisition of JDE Peet’s was one of the largest deals of the year. Vertical farm projects like GigaFarm in Dubai demonstrated a search for alternatives to traditional agriculture.
September
Innovation Hubs and Trade Agreements
FrieslandCampina Ingredients opened an innovation hub in Singapore, strengthening its presence in APAC. The WTO's global agreement on harmful fishing subsidies came into force, increasing the focus on sustainability.
October
Labeling, Schools, and 2026 Trends
The European Parliament voted to ban 'meaty' names for plant-based products. In California, a law was passed to phase out ultra-processed foods in school meals. Innova Market Insights identified key trends for 2026—gut health, protein, and stress management.
November
UPF, GLP-1, and Restructuring
Discussions on the definition of ultra-processed foods intensified. The growing popularity of GLP-1 drugs began to change food demand structures. PepsiCo announced the closure of some production facilities in response to market pressure.
December
Summary and the New Norm of Volatility
At Fi Europe 2025, innovations in plant fats and cocoa traceability were noted. The EU agreed to delay the deforestation regulation, but uncertainty for business remained. Cocoa market volatility began to be seen as a new structural reality rather than a temporary deviation.
