key takeaways:
- Food manufacturers must be away from relying on price growth, which should focus on opportunity-based sales and product innovation to run development.
- Digital changes and analysis capabilities are required to adapt to pricing, publicity and consumer engagement.
- Companies are giving priority to long-term operating efficiency through AI and automation rather than traditional cost-cutting measures.
Food manufacturers face an important year because pricing power decreases and consumer behavior develops. As Deloitte’s latest industry approach2025 will require companies to look beyond traditional pricing strategies to achieve profitable growth.
Research, which analyzed companies of top 100 global consumer products and surveyed 250 industry officials, reveal to focus in the forward year to disclose important areas for food manufacturers.
Product Innovation and Portfolio Management
A striking 85% of food and beverage reports that they are rapidly oriented by their strategy around opportunities-based sales. Instead of competing in traditional category segments, leading companies are thinking more widely about consumption opportunities – consumer in view of the full spectrum of the option for any given food moment, full snacks for any given food Until, all can choose on formats and methods of preparation. This extended approach helps companies better understand their real competitive set and develop products that better meet specific consumer requirements and moments.
Most (95%) consumer product companies are prioritizing new product introduction in 2025, with 80% of their innovation investments. In particular, almost two-thirds of aged innovations are actually shifting towards developing novel products.
Some of that innovation can be directed to products for consumers seeking value-67% companies are looking at more consumers for more consumers for low-cost options between high-or-I shopkeepers (52%). However, 66% of companies are planning to use more product premiums to promote the profitability of their sales mixture.
Demand production and analysis
Consumer product companies are planning to increase their investment in digital channels and analytics capabilities in 2025:
- About 80% of digital channels and platforms are promoting their investment to reach better and attach consumers.
- Analytics capabilities are proving to be particularly valuable, 74% of companies report that these devices are helping them to determine more accurate prices, promotion and discounts.
- Revenue growth management (RGM) systems are important, 62% of officials said that these systems would play a major role in their success in the year.
This broad push towards digital change shows the recognition of the industry that it is necessary to take data-powered decisions to maintain competition in today’s market.
Operational efficiency and technology
To fund the initiative of development, companies are focusing on transformational efficiency through digitization and automation in the coming year.
A heavy 96% of officers are prioritizing productivity improvement in 2025, recognizing the need to adapt to operations. This push towards efficiency is reflected in technology investments, 76% of companies have increased their investment in AI technologies.
Additionally, 68% of surveyed officials report that they are investing in smart technology solutions and automation to adapt especially operating costs. This suggests that companies are taking a long -term approach of efficiency rather than relying on traditional cost cuts.
Recommendations for food manufacturers
Since food manufacturers plan their strategies for 2025, these four major areas will help increase profitable growth:
- Given the complete competitive set beyond the traditional category boundaries, develop products with a clear opportunity-based position.
- Invest in accurate analytics to customize pricing and promotion strategies, especially pricing power is reduced.
- With special attention to supply chain and production processes, use AI and automation to run operational efficiency.
- Consider the strategic division of reducing product lines by achieving strong brands that can increase growth.
As the industry moves beyond the era of value-operated development, stand out as a potential divine point for 2025 food manufacturers. Success will probably be related to companies that can simultaneously innovate to change consumer opportunities, take advantage of data to make smart decisions and to change their operations through technology. Those who risk these strategic changes to fall behind more agile contestants in an industry, who are re -defined the parameters of rapidly profitable growth.
