From tariffs to a continued focus on sustainability, 2025 is another year of change for the food industry supply chain.
In this article, we explore the fundamentals of the food industry supply chain, take a deep dive into the challenges driving 2025’s biggest trends, and explore some practical examples of how the right food packaging can help.
Food and Beverage Supply Chain Basics
The food supply chain refers to the entire system of processes, people, and organizations involved in growing, processing, packaging, transporting, and delivering food to consumers. According to the World Economic Forum, it fuels a global food market estimated at over $9 trillion.
The specific steps of a food product’s supply chain depend greatly on the type of product. Produce and “farm to table,” locally sourced foods may only require a few steps, from field to distribution and, ultimately, the retailer. Commercial food producers that make prepared foods and beverages have a far more intricate supply chain to manage.
This can include:
- Produce or raw goods
- Warehouse logistics
- Processing, such as baking, mixing, or milling
- Packaging
- Labeling
- Distributor or wholesaler handling
- Retailing at locations ranging from grocers to c-stores
Each step requires important considerations, such as refrigeration, speed of transportation, or proper packaging, to ensure the food stays fresh. In the U.S., regulations like the Sanitary Food Transportation Act of 2005 also require certain sanitary transportation practices to ensure that food carried by road or rail is not altered or unsafe.
“There are a lot of moving parts when it comes to getting food products to consumers safely and without costly losses,” said Lacerta Vice President of Sales and Marketing, Craig Muldrew. “Selecting the right packaging plays a huge role.”
To transport food efficiently, commercial food producers should seek packaging that is cost-effective, but also has the strength to withstand transportation. The packaging must have the right kind of seal to keep food secure from leaks and tampering. Finally, the packaging should stand out with innovative design, clarity, and eye-catching labeling to boost appeal once on the store shelf.
Food Supply Chain Trends and Issues in 2025
The trends below focus specifically on how food supply chains are changing in 2025. For a broader perspective, explore our guide to 2025 grocery industry trends.
Trend One: Businesses Focus on Operational Resilience
In the wake of COVID-era disruptions, and now amid ongoing geopolitical instability (including tariffs and conflicts like the war in Ukraine), food supply chain leaders are prioritizing operational resilience more than ever. This focus includes diversifying supplier bases, strengthening logistics infrastructure, and developing contingency plans to handle unexpected shocks.
Beyond these high-level risks, broader operational inefficiencies have always posed persistent challenges. According to the Food and Agriculture Organization of the United Nations, roughly 30% of food produced for human consumption is lost or wasted along the supply chain each year. Improved practices across the chain can not only help mitigate acute risks but also reduce waste, improve efficiency, and ensure more product reaches the end consumer.
The Food Institute outlines several strategies to support greater systemwide resilience, including:
- Partnering with reliable, temperature-controlled carriers
- Conducting regular risk assessments using analytics and predictive tools
- Improving supply chain visibility through ERP integration with a Transportation Management System (TMS) for real-time tracking
- Using predictive analytics (and even AI) for demand forecasting, automated warehouse management, and potentially even autonomous delivery
Trend Two: A Continued Emphasis on Sustainable Supply Chains
In 2025, sustainability has evolved from a niche concern to a central pillar of food supply chain strategy. Driven by consumer demand, regulatory pressures, and internal policies, companies are reimagining their products and operations to minimize ecological impact while maintaining efficiency and profitability.
Forbes reports that “Sustainability remains a key focus for supply chain leaders as they strive to meet Environmental, Social, and Governance (ESG) goals. Companies are investing in technologies that facilitate sustainable practices throughout their supply chains, from ethical sourcing to reducing carbon footprints.”
Reduction of greenhouse gas emissions across the supply chain is the central imperative for this transformation. This shift involves not only considering environmental impact when sourcing ingredients but also optimizing transportation, energy use, and waste management. For instance, packaging selection compatible with closed-loop recycling enables materials to be reused within the production cycle, reducing reliance on virgin resources and decreasing landfill waste.
The increased use of post-consumer recycled (PCR) plastics as part of a broader push toward sustainable packaging design is another critical development. By incorporating PCR materials, companies can significantly lower their carbon footprint and reduce the volume of plastic waste generated by food products.
Trend Three: A Move Toward Healthier Ingredients
Shoppers are no longer just scanning for price or brand, but looking for cleaner labels, fewer additives, and ingredients they recognize. Critically, research shows that consumers are willing to pay a premium for healthier food products.
This shift toward fresh, healthy, and whole foods is influencing decisions across the supply chain, from sourcing and production to packaging and labeling.
As demand for transparency and nutrition grows, food manufacturers are reassessing not only what goes into their products but also how clearly they communicate it. Food Industry Executive reports that “Consumers are increasingly seeking products that cater to specific dietary needs and provide transparency into their production. In response, manufacturers have prioritized the use of fewer additives and preservatives while focusing on natural and minimally processed ingredients. Additionally, companies are ensuring their ingredient lists are clear and easy to understand – helping consumers find the transparency they seek.”
Trend Four: A Renewed Focus on Improving Food Safety
Food safety depends on every link in the supply chain, and in an era of fast-moving goods and complex global logistics, best practices are under sharper scrutiny than ever. Foodborne illness outbreaks continue to make headlines, and the industry is working to modernize safety practices and build greater transparency (both for internal operations and the broader supply chain).
Part of that push is regulatory. Under the FDA’s Final Rule on Requirements for Additional Traceability Records for Certain Foods, manufacturers and distributors handling high-risk items (like leafy greens, fresh-cut fruit, soft cheeses, and shell eggs) must now maintain detailed traceability data. This includes assigning lot codes, tracking critical events like packing and shipping, and providing records within 24 hours of request. While the rule applies only to foods on the FDA’s Food Traceability List, it signals a broader shift toward digital traceability and proactive risk mitigation.
Packaging is a key part of the equation. It plays a vital role in preventing spoilage, contamination, and tampering, especially for perishable or ready-to-eat items. The choice of packaging materials and sealing technology directly affects the integrity of the food inside. Factors like oxygen transmission rate (OTR), moisture barriers, and temperature tolerance are important variables to consider in the science of shelf life.
Trend Five: Searching for Opportunities to Optimize on Cost
In 2025, years of persistent inflation and supply chain disruptions have already driven up cost structures for the food industry, and food prices continue to increase faster than historical norms. Now, the potential for increased tariffs on key inputs could significantly impact operational expenses across the food industry. For instance, the recent doubling of U.S. tariffs on imported steel has led to a projected increase of up to 30 cents per can for canned food products, as manufacturers grapple with higher material costs and limited domestic supply.
These economic pressures will drive companies to seek innovative solutions that can help maintain profitability without compromising on quality or sustainability.
Packaging is a key focus area: design and material choices play a crucial role in controlling costs and meeting consumer demands. Lacerta's Seal N’ Flip™ packaging provides an illustrative example. This next-generation grab-and-go solution is engineered to reduce plastic usage by up to 50% and lower packaging costs by as much as 25% compared to traditional clamshell containers. Its unique bottom-facing film lid not only enhances shelf appeal but also integrates tamper-evidence features, aligning with both safety and sustainability goals. Finally, Seal N’ Flip™ is compatible with standard lidding film equipment, facilitating efficient production scaling without the need for significant capital investment.
Looking Ahead for the Food Industry Supply Chain: How the Right Food Packaging Can Help
As we have explored in this article, the right technology and design choices can go a long way toward building a food supply chain built for today’s market challenges. But it is important to recognize that your company need not become an expert in every aspect of the supply chain. The right vendor partnerships are key, and forward-thinking vendors should offer tools and expertise to help.
“Companies are looking for efficiencies that get them to market faster without having to greatly increase costs,” said Muldrew. “Technology is a great way to accomplish that goal, both within your own company and by shopping for vendors who are using advanced tech to find their own efficiencies.”
For example, companies that offer life cycle assessments (LCA) on their products can help their customers better understand their climate footprint. This data can then be used to design a greener product, such as less packaging or more locally-sourced materials.
Another key aspect of overcoming future supply chain challenges is agility. Being able to go from ideation to design to a finished product quickly provides companies with a competitive edge. It’s a benefit we offer our customers: rapid speed-to-market at a competitive cost.
Need help managing packaging supply chains or accelerating speed-to-market? We’d love to show you what we do best. For more information, contact our packaging experts.
