Welcome to this week’s Food Exec Brief, a roundup of the most important news shaping food and beverage manufacturing, from M&A moves and regulatory shifts to tech innovation and sustainability trends.
Key takeaways:
- 📉 Consumer trust crisis: U.S. food safety confidence hits 13-year low at 55%, with consumers citing profit-over-safety concerns and frequent recalls as primary drivers of mistrust.
- ⚖️ Regulatory response: USDA launches 5-part safety plan with enhanced testing and inspector training, while federal agencies seek to define “ultra-processed foods” amid rising health concerns.
- 💰 Manufacturing investment: Mars commits $2B through 2026 as U.S. food sector attracts $15.3B in capital, despite tariff and labor challenges threatening future growth.
- 🤖 Technology evolution: Agentic AI emerges as next breakthrough for food operations, while global recalls surge due to complex supply chains and labeling errors.
📉 Consumer trust and food safety concerns
Consumer confidence in U.S. food safety reaches critical lows as recalls surge and trust erodes across all demographics.
Consumer confidence in U.S. food safety hits 13-year low
Only 55% of Americans express confidence in U.S. food safety in 2025, down from 62% in 2024 and 70% in 2023, according to the International Food Information Council’s annual survey. The decline spans all demographics, led by Gen Z (down 10%). Primary concerns include believing profit is prioritized over safety (59%) and insufficient government regulation (46%). Foodborne illness from bacteria now tops consumer worries at 50%.
Global food recalls surge to record levels
Food recalls reached record highs in 2024, with Canada and the U.S. experiencing 300 incidents costing an estimated $1.92 billion in direct expenses. Prepared foods and confectionery topped recall charts globally, with dairy recalls surging to nearly 400 products withdrawn in Q1 2025 alone. Labeling errors accounted for 45% of U.S. cases, highlighting operational rather than safety failures.
⚖️ Regulatory and policy
Government agencies launch comprehensive safety initiatives while seeking clarity on ultra-processed food definitions.
USDA unveils 5-part food safety enhancement plan
Secretary Brooke Rollins announced a comprehensive safety plan featuring enhanced microbiological testing (200% increase in Listeria samples), expanded inspector training and tools, and strengthened state partnerships. USDA is also developing “more effective approaches” to address Salmonella in poultry through stakeholder engagement and increased enforcement actions for systemic issues.
Federal agencies seek ultra-processed food definition
HHS, FDA, and USDA launched a joint Request for Information to establish the first federally recognized definition for ultra-processed foods. With an estimated 70% of packaged U.S. products considered ultra-processed and children consuming over 60% of calories from such foods, the initiative supports the “Make Our Children Healthy Again” assessment linking ultra-processed consumption to chronic disease.
Food safety strategies focus on hygienic design
Industry experts emphasize five critical strategies: strengthening HACCP systems with hygienic equipment design, prioritizing workforce training grounded in global standards, enforcing equipment-specific sanitation SOPs, tightening supplier controls, and utilizing digital compliance monitoring. The approach addresses 94% of processing plants that rely on integrated safety systems.
💰 Manufacturing investment and market dynamics
Major investments continue despite mounting challenges from tariffs and labor constraints.
Mars announces $2B U.S. manufacturing commitment
Mars, Inc. plans to invest $2 billion in U.S. manufacturing through 2026, building on $6 billion invested over the past five years. The commitment includes a new $240 million Nature’s Bakery facility in Utah creating 230 jobs and a $450 million Royal Canin facility in Ohio. With 94% of Mars products sold in the U.S. produced domestically, the company employs over 70,000 associates across 49 states.
U.S. food manufacturing sees $15.3B investment surge
The sector attracted 154 new projects from 2023-2024, generating $15.3 billion in capital investment and 23,000 new jobs. Dairy products led with $3.3 billion (22% of total), followed by fruits/vegetables/specialty foods at $2.5 billion. However, tariffs and labor challenges threaten growth, with food manufacturing relying heavily on immigrant labor (12.7% of agricultural workers undocumented).
🤖 Technology and innovation
Agentic AI emerges as transformative technology while digital solutions address operational challenges.
Agentic AI becomes food industry’s next breakthrough
Walmart leads the charge with four “super agents” powered by agentic AI for shoppers, employees, suppliers, and sellers. Unlike traditional chatbots, agentic AI makes autonomous decisions and performs tasks independently. Food industry applications include managing dietary preferences, real-time inventory reordering, and reducing order errors by nearly 50%.
The Food Exec Brief provides weekly insights for food and beverage manufacturing leaders and publishes every Friday. Want to get essential food industry news delivered to your inbox? Sign up for our weekly and daily newsletters.
