Food & Beverage Manufacturing Mid-year Industry Update

Executive Summary

The food manufacturing industry’s global revenue is projected to reach US$10.07 trillion in 2024, showing a steady annual growth rate of 6.53%. As we peek toward 2025, it seems that the food and beverage industry is poised for even greater forward momentum, driven significantly by innovation. Manufacturers are investing more deeply in systems and solutions that will increase throughput to drive more top line revenue. As a result, the focus has shifted toward how facilities and the processes they carry out can become more efficient, predictable, and sustainable. In 2025 we expect to see greater adoption of end-to-end manufacturing technologies as organizations strive to lower costs, reduce resources, and drive growth through process improvement.

Digital Systems

It’s important for even the smallest food manufacturers to continue to invest in digital technologies in order to meet growing industry standards for increased transparency and safety. Having the ability to participate in digital supply networks while mitigating compliance concerns will serve as a huge competitive factor for manufacturers.

Increasing throughput

Downtime is the number one enemy of productivity and it can be very costly. Reducing unexpected downtime remains a top priority for food manufacturers. Predictive maintenance planning and streamlined resource management can help reduce that risk. This technology can identify potential disruptions before they occur and increase your facility availability, which ultimately leads to greater profitability while still maintaining the quality and safety of the products produced.

In addition, technology in the form of automation and robotics combined with software and sensors is transforming how food-related products are manufactured, with the ability to increase uptime and ensure repeatability. Automation will have a profound impact on the food industry heading into 2025 as manufacturers look to derive greater flexibility out of their manufacturing systems, reduce operator error, and enhance record keeping for regulatory purposes.

Managing Resources & Reducing Waste

Industry 4.0 systems can help optimize energy consumption and productivity across an entire facility. Organizations can accurately measure and manage resources to further improve performance, optimize product quality, and reduce waste. With the food industry likely to face an increase in regulations regarding emissions, resource use and waste, advanced technologies can streamline resource management, boosting efficiency and helping cut costs.

Many food manufacturers are also making strides by developing ways to quantify their waste streams and measure improvements. The companies that are most successful in optimizing their resources also leverage their digital data to help audit their resource use and identify easy targets that can be addressed with minimal costs. 

Gathering & Harnessing Data

As consumers begin to take a greater interest in the end-to-end production cycle, from raw materials to finished product, manufacturers continue to solve for ways to make their data work for them – seeking to deliver operational visibility and transparency. Data and data management provides the key to a new level of visibility that helps manufacturers make the right decisions quickly, streamline manufacturing and satisfy their manufacturing partners. Augmenting human decision making with data-driven science is a recipe for success to say the least.

Artificial intelligence

Manufacturers have continued to chase their curiosity around AI tools that can enhance their overall efficiency while helping to adjust processing parameters in real-time. Ensuring greater consistency, reducing waste, and enhancing the overall product quality continue to remain a high priority within food and beverage. From identifying foreign particles, or assessing color consistency, manufacturers will continue to leverage digital systems and AI tools that can uphold rigorous quality checks.

We will see more AI and analytics applied toward supply chain optimization, allowing teams to forecast demand, identify emerging trends, adjust production schedules, manage inventory, and reduce resources. Overall, investments in data analytics and AI will help manufacturers make data-driven decisions for continuous improvement.

FSMA 2026 

Food safety has always been a significant driver for this industry. Manufacturers will expect their tech to help with tracking and traceability leading to increased accountability throughout the food supply chain. Businesses who manufacture, process, pack, or hold foods on the Food Traceability List have begun preparing for a new round of regulations set to go into effect in 2026 that will impact the way data is captured, stored and maintained. It also requires businesses to establish and uphold a traceability plan, outlining procedures for record maintenance, assigning lot codes and providing clear identification of FTL foods handled. 

As organizations prepare for FSMA 2026, we are seeing greater adoption of digital systems with tracking capabilities. Products will be scanned at every checkpoint, and real-time information will need to be easily accessible. As we inch closer to these new standards, manufacturers will continue to invest in systems that allow for greater visibility and traceability.

Conclusion

Decision-makers will continue to keep Industry 4.0-driven digital systems at the forefront of their minds as data insights, automation, and digital transformation now play a major role in driving manufacturing quality and success. Manufacturers should keep in mind that getting the right advice from technology vendors at the beginning of the digital journey will help keep them on the right track. From accessing the data you need to establishing IT and OT connectivity within your organization, your digital platform should merge your real world operations with your digital world so that you can better leverage the data generated by your organization.

Looking for a digital system that can deliver data insights and tools that can help you manufacture faster and safely? Connect with our team and learn more about our Tempo Manufacturing Cloud platform today.