Key Strategies for Food Manufacturers in 2025
Key Takeaways:
- Food manufacturers must shift away from relying on price increases, focusing instead on occasion-based selling and product innovation to drive growth.
- Digital transformation and analytics capabilities are becoming essential for optimizing pricing, promotions, and consumer engagement.
- Companies are prioritizing long-term operational efficiency through AI and automation rather than traditional cost-cutting measures.
Food manufacturers face a pivotal year ahead as pricing power continues to diminish and consumer behavior evolves. According to Deloitte’s latest industry outlook, 2025 will require companies to look beyond traditional pricing strategies to achieve profitable growth.
Product Innovation and Portfolio Management
A striking 85% of food and beverage executives report they are increasingly orienting their strategy around occasion-based selling. Leading companies are thinking more broadly about consumption occasions, considering the full spectrum of alternatives consumers might choose for any given eating moment.
Most consumer products companies are prioritizing new product introduction in 2025, with a focus on developing truly novel products rather than incremental innovations.
Demand Generation and Analytics
Consumer products companies are planning to significantly increase their investment in digital channels and analytics capabilities in 2025. Analytics capabilities are proving valuable for setting precise prices, promotions, and discounts.
Operational Efficiency and Technology
Companies are focusing on transformative efficiency through digitalization and automation in the year ahead. An overwhelming 96% of executives are making productivity improvement a priority in 2025, with investments in AI technologies and smart technology solutions to optimize operating costs.
Recommendations for Food Manufacturers
As food manufacturers plan their strategies for 2025, focusing on product innovation, precision analytics, AI, and automation will be key drivers for profitable growth.
- Develop products with clear occasion-based positioning
- Invest in precision analytics to optimize pricing and promotion strategies
- Use AI and automation to drive operational efficiency
- Consider strategic divestments and acquisitions
Success in 2025 will belong to companies that innovate for changing consumer occasions, leverage data for smarter decision-making, and transform their operations through technology.
