In Q2 2025, the food and beverage industry continues its dynamic evolution, marked by strong M&A activity, expanding private label offerings, and intensified investment in technology. Consumers are seeking value, transparency, and wellness benefits, while economic and geopolitical factors—particularly tariffs—are reshaping supply chains and market strategies.

Key takeaways include:

• Private Label Acceleration: With grocery prices on the rise, 70% of consumers are turning to private label products. The U.S. private label market is expected to grow to $270.6 billion in 2025, with improvements in ingredient quality, branding, and expanded e-commerce and discount retail distribution fueling the surge.
• Tech and Consumer Innovation: Companies are investing in AI and logistics platforms to improve forecasting, reduce food waste, and deliver personalized health offerings. Demand for globally inspired flavors, functional ingredients, and sustainability initiatives are driving product innovation and reshaping brand positioning.

Tariffs on food imports are raising costs on staples and prompting supply chain realignments—creating both risks and opportunities for domestic producers navigating a more protectionist trade landscape.