Top Food and Beverage Trends of 2025 (and the Logistical Challenges They Bring)
Welcome to the exciting world of the food and beverage industry, where global food and beverage trends shift and consumer demands change daily – along with the challenges they bring. From the rise of diverse product expectations, to the important roles that sustainability and technology play, the way we produce, distribute, and consume our favorite food and drink keeps changing. So grab a snack, sit back, and let's dive in!
Greater food and beverage diversity
As the shelves fill up with exciting new food and beverage options to delight customers, these expansions present logistical challenges for the supply chain. Finding the right ingredients, coordinating with multiple suppliers, and managing an increasingly complex supplier network requires careful coordination. To keep up with customer expectations, the need for effective supply chain management becomes even more crucial.
Some notable consumer focused global food and beverage trends include:
- Increased non-alcoholic beverage demand: Raise your glass of sparkling water, because non-alcoholic beverages are gaining popularity! Driven largely by health-conscious Gen-Z consumers, one of the key areas of diversification is evident in the increased demand for alcohol-free alternatives to traditional cocktails and beer options. Valued at $1.8 trillion in 2024, the market for non-alcoholic beverages is expected to reach 3.8 trillion by 2034. From sourcing quality ingredients to finding the perfect packaging, the supply chain needs to adapt to meet the growing demand for soft drinks, bottled water, juices, teas, coffees, and functional beverages.
- Gut health and functional foods seeing renewed popularity: Post-pandemic, there's a renewed focus on gut health, with consumers seeking functional foods that support the microbiome. Ingredients like fiber, pre- and probiotics are in high demand, and product launches with digestive health claims are increasing. This popularity surge creates preservation challenges for the supply chain as many of these ingredients are literally alive. Companies can employ advanced preservation technologies such as microencapsulation, freeze drying, or even active packaging to create a controlled microclimate to maintain probiotic integrity.
- Meal kit popularity is still on the rise: Meal kits have revolutionized the way we approach cooking, becoming a gateway to exciting new ingredients. Expected to reach a tantalizing $88.97 billion by 2033, the meal kit market has millions of subscribers anticipating their weekly delivery. Ensuring these kits arrive fresh, coordinating with multiple suppliers to source these unique ingredients, and managing the waste that comes along with packaging can be a struggle. But not for Home Chef: this popular meal kit delivery service chose to centralize their logistics strategy and saved over $1M by using the Shipwell TMS. Meal kits have not only transformed the way we cook, but have also fueled a desire for new culinary experiences — ultimately shaping the entire food retail landscape.
With these trends, introducing new stock-keeping units (SKUs) from entirely new suppliers means building relationships from scratch, coordinating logistics with multiple parties, and making sure everything flows smoothly, all while continuing to maintain existing networks. Balancing the tried-and-true traditional offerings while adding fresh and diverse options to meet these changing expectations requires careful coordination and more than a bit of logistical magic.
Increased focus on environmental sustainability
In recent years, sustainability has become a key priority in the food and beverage industry as consumers demand more environmentally responsible practices. People are increasingly aware of the impact their food choices have on the planet and are seeking products that align with their values. This shift in consumer mindset has sparked a movement towards sustainability throughout the entire supply chain.
Some of the areas customers care about most include:
- The shift towards regional agricultural structures: Eco-minded consumers now prefer locally sourced food, as it reduces the carbon footprint associated with long-distance transportation. By supporting regional agriculture, businesses can strengthen local economies, reduce greenhouse gas emissions, and ensure fresher produce. Many restaurants and grocery stores have embraced the farm-to-table concept, forging direct relationships with nearby farmers to source fresh, seasonal ingredients. This not only supports local farmers but also provides customers with a transparent and sustainable food experience.
- Responsible packaging and the avoidance of single-use plastics: The excessive use of single-use plastics has raised concerns about waste and pollution. To address this issue, many food and beverage companies are adopting sustainable packaging solutions, exploring alternatives such as biodegradable materials, compostable packaging, and innovative designs that minimize waste. All of these options bring new and constantly shifting needs to a business’s supply chain, and as your business expands and changes, a TMS like Shipwell’s can scale to accommodate your evolving needs. This includes managing the transportation of new types of goods, adding new carriers or transportation modes, and adapting to changes in market conditions or customer requirements. With the right tools, companies are able to significantly reduce their environmental impact and appeal to environmentally conscious consumers, and Shipwell delivers.
- Reducing food waste and increasing social responsibility: According to the United Nations Food Waste Index Report, up to 783 million people are affected by hunger annually, yet the US alone discards more than $1 trillion worth of food each year. This wastage not only squanders valuable resources but also contributes to greenhouse gas emissions. To combat this issue, many businesses are implementing strategies to minimize food waste throughout the supply chain. This includes optimizing inventory management, improving production planning, repurposing or donating excess food, and preventing spoilage during shipment.
A heightened focus on sustainability brings many environmental and social benefits, while presenting unique food and beverage supply chain challenges. Coordinating with suppliers to ensure adherence to sustainability standards, implementing efficient waste management systems, and consistently sourcing sustainable ingredients are ongoing hurdles. Striking a balance between sustainability goals, cost-efficiency, and profitability requires careful planning, investment in technology, and collaboration across the entire supply chain.
Better connected technology
Food and drink from manufacturers, distributors and suppliers require time-sensitive shipping to maintain freshness and compliance with regulations. Technology is a key part of streamlining operations and enhancing efficiency, paving the way for a more agile and responsive supply chain that satisfies people’s palates.
Some of the most prominent global food and beverage trends in tech include:
- Increased capabilities in transportation management systems (TMS): These systems utilize advanced software and data analytics to optimize transportation operations, improve route planning, and enhance overall supply chain visibility. With a TMS in place, companies can better track shipments, monitor delivery performance, and reduce transportation costs. For example, companies using Shipwell have been able to identify consolidation and routing optimization opportunities to reduce costs by as much as 40%, as well as see a reduction of over 10,000 pounds of carbon emissions from a single batch of shipments.
- Leveraging AI for superior forecasting and management: By analyzing vast amounts of historical data and market trends, AI can generate accurate predictions about consumer demand, allowing companies to optimize their inventory levels, minimize waste, and prevent supply chain disruption through AI-enhanced exception management. Available through Shipwell’s Compass Dashboard, this feature leverages AI and machine learning to continuously monitor orders and shipments, proactively identifying potential issues and provide a method for correcting them — all on one screen.
- Utilizing IoT tracking devices for real-time condition monitoring: These physical tracking devices attach to shipping containers to monitor temperature, humidity, light exposure and more depending on the actual device. With this information at your fingertips, food and beverage companies can drastically improve quality assurance, and on-time performance and even reduce the potential for product damage before it occurs.
- Establishing partnerships and fostering collaboration: Through digital platforms and cloud-based solutions, companies can easily connect with suppliers, distributors, and retailers. For instance, with Shipwell's strategic partner marketplace, shippers benefit from established partnerships for streamlined financial management, advanced risk management, enhanced carrier options, simplified logistics processes, and improved visibility. This seamless collaboration allows for real-time information sharing and communication, ensuring everyone involved is on the same page — all while cutting hours from your day and dollars from your expenses.
As the industry continues to evolve, the right balance of technology, innovation, and human expertise will be essential for success. By leveraging the power of technology, food and beverage companies can navigate the complexities of the modern supply chain and remain competitive in a rapidly changing marketplace. Choosing the right technology solutions and implementing them effectively is key, and the wrong choice can easily leave you with a recipe gone wrong.
Getting ahead in food & bev
Blending innovation, adaptability, and the right technology solutions keeps you ahead of the game. We've explored the exciting trends shaping the industry, but now, the big question remains: Will your business be able to keep up?
The answer lies in layering in the right technology to meet your business needs.
To help transportation managers navigate this complex decision-making process, we've created a comprehensive checklist to determine exactly what you need to succeed. From scalability and customization options to ease of use and staff training needs, this checklist covers all the ingredients to ensure that your TMS holds the recipe for your success.
It's like choosing the right utensil for the recipe: shippers must weigh multiple factors such as scalability, customization options, ease of use, and customer support. By staying adaptable and embracing the right technology solutions, you can keep up with consumer expectations, enhance collaboration, and stay ahead of food and beverage supply chain challenges.
Want to learn more?
Seamlessly schedule your shipping and receiving appointments directly on our online carrier & dock worker portal. Our strategic automation is designed to optimize dock availability, tailored tonavigate your facility's constraints and understand the unique nature of each of your shipments.