Food and beverage trends impacted by consumer preferences, shifting economy

The food and beverage industry is expansive. It encompasses a wide variety of unique operations, including manufacturers, grocers, distributors, restaurants and bars, caterers, food transportation services and similar businesses. In recent years, the food and beverage industry has undergone significant transformation and is expected to reach nearly $1.8 billion in sales by 2030.¹ 

Given the breadth and fast-paced nature of this industry, it can be difficult for food and beverage operations—regardless of their area of focus—to stay on top of trends affecting key players in the space. This article will examine some of these trends in more detail.  

High-level trends impacting food and beverage industry operations

Vendor partnerships with food delivery platforms

Few trends have had more of an impact on restaurants and consumer behavior than food delivery platforms. Services like DoorDash, Grubhub, Toast and Uber Eats have fundamentally reshaped how people order and consume food, allowing patrons to browse menus, compare options, and order meals directly to their door. Notably, the global food delivery market has more than tripled since 2017, achieving a value of over $150 billion.²  

While these vendor partnerships offer unprecedented consumer convenience and expanded market reach for restaurants, they also introduce significant financial and operational challenges. For example, restaurants that previously only competed with nearby establishments for business now must contend with options from much larger geographic areas. As a result, newer or lesser-known restaurants often struggle to compete, lacking the consumer trust and brand recognition that more established businesses have built over time.³  

The use of food delivery platforms can also impact an organization’s bottom line. In general, commission fees for vendors like DoorDash can range from 15% to 30% per order.³ What’s more, delivery fees often range from 10% to 20% if the restaurant utilizes drivers from the food delivery vendor.³ Restaurants may also face payment processing fees and can pay extra for marketing services like sponsored listings to boost visibility. 

Beyond these operational and financial challenges, food delivery platforms create additional pressures for restaurants to operate more efficiently and adapt to this on-demand economy. This can involve optimizing operations to balance both in-house and delivery orders.  

Evolving dining habits

Consumer dining habits are evolving and driven primarily by economic uncertainty, a shifting definition of value, changes in work schedules, and a strong desire for convenience and experience.  

As economic uncertainty remains at the forefront of consumers’ minds, more diners are prioritizing affordability and value in the face of inflation concerns and rising living costs. Search data from the first quarter of 2025 compared to the previous year shows significant increases in searches for budget-friendly options:⁴ 

• Searches for “cheap eats” are up 21% 

• Searches for “meal deal” have climbed 117% 

• Searches for “value meal” have risen 22% 

Although lower price points are critical for diners, value is no longer purely about cost. Consumers define value as a combination of quality, convenience, experience and affordability. Many restaurant customers view the holistic dining experience as more important than the price of the meal itself, and over one-third of full-service diners prioritize experience and service over price, according to recent survey data.⁵ 

In addition to consumer habits around spending and value, the nature of how and when individuals choose to dine is changing. As more people return to the office post-pandemic, morning food service traffic is up for the first time in two years as consumers seek convenient breakfast options.⁶ In contrast, lunch sales in restaurants continue to lag. This may be because consumers are snacking throughout the day rather than having a full, formal lunch.⁶ 

When it comes to convenience, younger Gen Z and Millennial consumers are driving current trends, with 60% of this group ordering takeout more often than they did from 2024 to 2025.⁷ Broadly, Americans are now ordering delivery 4.5 times per month on average and a reported 75% of restaurant traffic in the U.S. comes from off-premise channels (e.g., takeout, delivery and drive-thru).⁸ 

Labor challenges

Labor shortages are one of the most pressing challenges in 2025. As of late 2024/early 2025, 70% of restaurant operators reported job openings that were difficult to fill, and 45% of operators claimed they did not have enough employees to support existing customer demand.⁹  

Compounding the issue, the food and beverage industry has a high employee turnover rate, often exceeding 70%.⁹ These shortages affect restaurants’ ability to operate at capacity, maintain high service standards and meet customer demand. 

Labor shortages are a top concern for 23% of food and beverage businesses, particularly in the restaurant sector.¹⁰ Notably, staffing challenges directly impact the customer experience through longer wait times and reduced personalization. 

Self-service technology in food and drinks

To counteract labor issues, advanced self-service technologies are being introduced to automate routine tasks. Some examples include the following: 

• Self-pour technology utilizes RFID tracking to allow customers to pour their own beverages, reducing the need for bartending staff and enhancing the guest experience through novelty and convenience. 

• Table-side tablets enable customers to browse menus, place orders and request service without waiting for staff, improving efficiency and table turnover. 

• Interactive digital menus provide dynamic, visually engaging menus that can be updated in real time to reflect availability, specials or dietary preferences. 

• Mobile ordering and payment systems allow customers to order and pay directly from their smartphones, streamlining the dining experience and reducing front-of-house labor needs. 

In general, automation and self-service technologies are being adopted as businesses actively look for new and innovative ways to streamline customer interactions. 

Sustainable packaging

Consumers are increasingly interested in sustainable packaging, which is impacting the operations and investment strategies of businesses. According to a recent survey, 43% of industry professionals identified meeting consumer demand for convenient, minimally packaged food and beverage products as a key factor influencing 2025 packaging investments.¹¹ 

Consumers are increasingly prioritizing sustainability in their purchasing decisions, with several factors driving the demand: 

• Environmental concerns: Shoppers want to support brands that care about the planet and take steps to reduce waste and pollution. 

• Less packaging waste: Many consumers prefer products with minimal packaging to cut down on what ends up in landfills. 

• Transparency and traceability: Buyers expect to know where products come from and how they’re made, pushing companies to adopt technologies like freshness indicators and digital tracking. 

• Ethical sourcing: Consumers favor brands that are open about their sourcing and manufacturing practices. 

• Sustainable habits: Most consumers (78%) say sustainability matters, and 63% report making greener choices when they shop.¹¹ 

• Willingness to pay more: Many are willing to spend up to 10% extra for products with sustainable packaging.¹¹ 

• Convenience and minimalism: Eco-friendly packaging that’s easy to use appeals to modern consumer lifestyles. 

Quality ingredients and Food Supply Chain Transparency

An increased focus on ingredient quality has become one of the single-most important purchase drivers for many consumers. One report from Innova Market Insights found that 58% of consumers prioritize ingredient quality when making food and beverage purchases.¹² 

Consumers are increasingly interested in unprocessed foods and natural ingredients, seeking healthier, fresher options. This shift toward fresher, healthier and less processed foods has put more emphasis on the food supply chain. 

Consumers want to know where their food comes from, how it’s made and what’s in it. This includes everything from sourcing practices to production methods. Ethical sourcing, sustainable farming and humane animal treatment are all under the microscope. Brands that can demonstrate transparency in their supply chains are winning consumer loyalty and standing out in a crowded market. 

Manufacturers are increasingly adopting transparent sourcing practices to meet consumer demands for ethical and sustainable products. This involves providing detailed information about the origins of their ingredients, farming practices and the overall supply chain. By sharing stories about their sourcing methods, companies can build a strong connection with consumers who value authenticity and integrity. 

Regulatory frameworks and certifications play a crucial role in this transparency movement. For instance, labels such as Fair Trade, USDA Organic, and Non-GMO Project Verified provide consumers with assurance about the ethical and environmental standards upheld during the production process. These certifications are not just marketing tools; they reflect compliance with stringent guidelines aimed at promoting sustainability and ethical practices. 

To stay competitive, manufacturers must prioritize accountability in their supply chains. This includes adopting blockchain technology to provide traceability and implementing more rigorous auditing processes to verify sourcing claims. As the market moves forward, transparent practices are not just a trend but a fundamental component of building trust and ensuring long-term consumer loyalty in the food and beverage industry. 

Navigating challenges in the food and beverage industry

While many external trends remain beyond a company’s control, focusing on strong internal practices—particularly through disciplined loss control—can help mitigate risk and maintain stability. Below are several key strategies and solutions businesses should consider. These recommendations mirror long-standing FDA, USDA, CDC and GFSI guidance emphasizing preventative controls, supplier verification, employee training and ongoing compliance: 

1. Implement comprehensive food safety programs by establishing standardized procedures for handling, storing and preparing food. 
2. Ensure regulatory compliance by staying current with federal, state and local health regulations. 
3. Conduct regular employee training programs to educate staff on food handling, emergency procedures and customer interactions. Encourage them to report hazards or potential risks immediately. 
4. Carry adequate insurance coverage and review policies periodically alongside a qualified insurance professional to ensure they align with current operations. 
5. Establish a crisis-management plan by developing clear protocols for food recalls, severe weather events, customer complaints or accidents. 
6. Conduct regular audits of suppliers to ensure they meet quality standards. Working with suppliers who hold relevant certifications, such as Global Food Safety Initiative (GFSI), can help guarantee the quality and safety of ingredients. 
7. Diversify the supply chain by establishing relationships with multiple suppliers. This ensures that if one supplier faces issues, there are alternatives to source from, mitigating the impact on production. 
8. Establish comprehensive quality-control processes. From initial sourcing to final product testing, having strict protocols ensures that only high-quality ingredients are used.  
9. Engage in sustainable and ethical sourcing practices. This doesn’t just mitigate risks associated with supply chain disruptions, but also aligns with consumer expectations for environmentally and socially responsible products.  
10. Conduct regular internal audits to ensure compliance with regulations and quality standards. Additionally, inviting third-party inspectors to evaluate operations can offer an unbiased review and highlight areas for improvement. 

You can share resources from our Food Service risk management library to help clients manage risks specific to their operations.  

By implementing these risk management strategies and solutions, food and beverage businesses not only ensure the quality and safety of their products, but also build trust with consumers and maintain a competitive edge.