Widukind Baier, Managing Partner
The food industry is undergoing a dynamic phase. New technologies, changing consumer preferences, and growing awareness of environmental and health issues are driving the industry forward. What is particularly striking is that despite global challenges such as supply chain problems, climate change, and resource scarcity, many companies are succeeding in finding solutions that are both innovative and responsible. The industry is proving to be flexible, forward-looking, and value-oriented.
For a long time, sustainability was considered a trend for the few – today, it is becoming the basis for corporate strategies. Packaging is becoming more climate-friendly, processes are becoming more resource-efficient, and CO₂ emissions are coming into sharper focus. More and more producers and retailers are voluntarily taking on ecological responsibility, relying on regional supply chains and integrating circular economy principles into their daily activities. According to a PwC study from 2024, over 80% of the food companies surveyed now see sustainable packaging as an integral part of their business strategy – no longer as an added benefit, but as a competitive factor. Environmental awareness is thus becoming not only an image factor, but a natural part of corporate identity.
At the same time, the industry is facing new conflicts of interest: growing transparency requirements, such as those imposed by the EU Supply Chain Act, are increasing the pressure to disclose sources of supply and terms and conditions – which builds trust but also harbors strategic risks, such as the danger of suppliers being poached or prices being undercut. The switch to sustainable packaging and production processes also entails higher costs and technical challenges, especially for medium-sized companies.
At the same time, we are seeing a real diversity of products – especially in the area of plant-based alternatives. The innovative power in this segment is enormous: purely plant-based “meat,” “milk,” and “eggs” are increasingly convincing in terms of taste. New approaches such as insect protein, fermentation technologies, and cell-cultured meat make it clear that nutrition is no longer purely an agricultural issue, but also a field of technological pioneering. The Good Food Institute’s (GFI) “State of the Industry Report 2024” shows that the global market for plant-based products grew by over 9% in 2023 – despite inflation-related consumer reluctance to spend. Innovation, taste, and sustainability are increasingly going hand in hand here. In addition, functional foods are gaining in importance—products that specifically support well-being, for example, through added vitamins, probiotic cultures, or particularly fiber-rich compositions.
Digitalization is also having a noticeable impact on progress. Intelligent systems, sensor technology, and artificial intelligence ensure precise control along the entire value chain—from the field to the supermarket shelf. At the same time, transparency is increasing: digital traceability makes origin, transport, and storage traceable and creates trust. However, digitization also increases the demands on data security and skilled workers – issues that still pose major investment and training challenges for many companies. Technology is also opening up new avenues in the fight against food waste, for example through demand-driven production and smarter logistics solutions.
Last but not least, attitudes toward origin and quality are also changing. Consumers are once again taking a greater interest in regional products, short delivery routes, and fair conditions for producers. In its study “Environmental Awareness in Germany 2024,” the Federal Environment Agency shows that almost 80% of respondents say they buy seasonal food frequently or very often – a clear signal of growing awareness of origin and sustainability. The retail sector is demanding greater transparency and is increasingly pursuing cooperation with small suppliers and the targeted expansion of local value chains. Authenticity and trust are becoming the focus of attention.
However, the economic balance remains challenging: sustainability, digitalization, and price competition must be reconciled in a market that is both innovation-hungry and price-sensitive.
Young companies are also bringing a breath of fresh air, enriching the industry with unconventional ideas. Whether it’s digital nutrition advice via apps, platforms for surplus food, or innovative subscription models, new business approaches are making nutrition not only more sustainable, but also more individualized and accessible. Increasingly, it’s no longer just about the product, but about the whole experience: nutrition is becoming a service, a platform, an interactive concept.
Conclusion
What is currently emerging in the food industry is much more than a short-term trend. The sector is impressively demonstrating how closely progress, responsibility, and consumer orientation can be linked. But despite all the successes, it is clear that transparency, digitalization, and sustainability are not a sure-fire success, but require the courage to be open, invest, and work in partnership along the entire value chain. Between technology and tradition, innovation and sustainability, a new food culture is emerging—one that not only satisfies the palate, but also offers prospects for a livable future.