The food industry is standing at a crossroads. Global shocks, shifting consumer expectations, and technological disruption are converging to reshape how we produce, distribute, and value food. For decades, efficiency and scale were the dominant playbook. Today, resilience, health, and sustainability are the new imperatives, and they demand a fundamentally different approach.
Food is not just a commodity; it is a system that underpins health, and environmental stability. When that system falters, the consequences ripple across economies and societies. According to our latest research surveying food and drink leaders, inflation and rising costs are now one of the biggest challenges for 57% of food and beverage leaders. This pressure eclipses even sustainability concerns, which 60% say have eased in the past year. This shift signals a hard truth: short-term survival is competing with long-term transformation.
Health: Moving beyond quick fixes
Obesity rates are climbing, and inequalities are widening. Appetite-suppressant drugs like GLP-1s dominate headlines, but they are not addressing key issues in the food system. At the IGD Future of Food Conference, Professor Chris Whitty, Chief Medical Officer for England, shared a stark reality: those in the most deprived communities can expect just 51.9 years of good health, compared to 70.7 years for the least deprived. The industry is reacting, with M&S launching a ‘nutrient dense’ range to meet changing appetites, and HFSS (high fat, sugar, salt) regulations aiming to support healthier choices . Whitty has urged the industry to look to the automotive industry for inspiration, where coordinated action and innovation dramatically reduced air pollution. Food needs a similar collective effort.
Resilience: From efficiency to agility
For years, supply chains were optimised for cost. That model is breaking down. Inflation, climate volatility, and geopolitical shocks are rewriting the rules. From our Operations Outlook 2026 research report, in the past 12 months, 57% of leaders in the food and beverage industry cite rising costs as one of their biggest operational challenges, leaving less room for error. To mitigate risk, 42% of businesses are improving supply chain transparency, 40% are strengthening collaboration with suppliers, and 40% are diversifying sourcing across geographies. These priorities show that suppliers are not only vital but the foundation of a more agile supply chain.
Sustainability: The strategic advantage
Economic pressures have softened the urgency around sustainability, but the long-term trajectory is clear. Growth models built on volume are becoming obsolete. As Henry Dimbleby MBE (long-time food campaigner and advocate for systems change) noted at the IGD Future of Food conference, growth cannot rely on volume alone. The future belongs to businesses that create value, elevating quality, provenance, and experience, and helping consumers appreciate food as something worth paying for. According to IGD and EY, sourcing costs for key commodities are expected to rise by 14.7% by 2050 if no change is made, as a direct result of climate impacts. Horticulture is projected to be hit hardest, posing risks to the fruit and vegetable supply that underpins healthier diets. Therefore, if sustainability falls down the agenda, these points show that this will not allow other priorities to succeed, they go hand in hand.
The path forward:
The future of food will not be defined by those who react to disruption, but by those who anticipate it. Leaders must embrace nutritional innovation and invest in resilient supply chains. Collaboration across the industry is non-negotiable. While many solutions already exist, the industry needs greater clarity, and alignment to implement them effectively. Regulation can help create a level playing field, but businesses must lead with ambition, not compliance.
The next decade will test the industry’s ability to balance competing priorities: profitability, health, resilience, and sustainability. Those who succeed will not only secure their future, but they will also redefine the role of food in society.
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