Food industry trends

Summary: Synthetic biology will enable the development of crops with tailor-made traits such as enhanced nutrition and climate resilience.

Current Situation: Synthetic biology, an emerging branch of science, allows for the design of new biological pathways to create crops with specific traits. While traditional genetic modification is known, synthetic biology extends beyond by assembling entirely new biological functions. Currently, its application in agriculture is still in the experimental phase with ongoing research focused on developing nutrient-rich, fast-growing, and pest-resistant crops.

Expected Development: Within 8-10 years, synthetic biology will advance to produce custom-designed crops on a commercial scale. This will support global food security by creating crops that can thrive in diverse environmental conditions, have improved nutritional content, and require fewer chemical inputs.

Challenges: Major hurdles include navigating complex regulations, addressing ethical concerns, and overcoming public skepticism about modified crops.

Time to Impact: 8-10 years

Potential Impact: Very High

STEEP Segment: Technological

This year’s trend development

Summary: Managing soil microbiomes will enhance sustainable farming by improving nutrient cycles and crop resilience.

Current Situation: Soil microbiome management is an emerging practice that focuses on cultivating beneficial microorganisms to support crop growth and soil health. While awareness of its benefits is growing, the adoption of biofertilizers and microbial inoculants remains limited. Current efforts are mainly in the experimental stages, with research being conducted to understand optimal methods and long-term benefits.

Expected Development: Over the next 4-6 years, soil microbiome practices will expand, becoming a mainstream part of sustainable farming. Advanced microbial products and tailored inoculants will be used more widely, enhancing soil fertility, reducing the need for synthetic inputs, and increasing crop yield sustainably.

Challenges: Limited awareness, farmer education, and access to effective products are barriers. Convincing traditional farmers of the long-term benefits poses a challenge.

Time to Impact: 4-6 years

Potential Impact: High

STEEP Segment: Ecological

This year’s trend development

Summary: Collaborative networks are enhancing knowledge sharing and sustainable practices among farmers.

Current Situation: Collaborative farming platforms and local cooperatives are helping farmers share knowledge and resources, boosting resilience and efficiency. These networks, both online and in-person, are at an early stage and are mostly limited to community-driven initiatives or pilot programs in developed regions.

Expected Development: In the next 2-4 years, more specialized digital platforms will emerge to facilitate real-time data and best-practice sharing. These networks will promote the adoption of new technologies and sustainable methods, especially in developing regions.

Challenges: Digital literacy and access to high-speed internet in rural areas remain significant hurdles.

Time to Impact: 2-4 years

Potential Impact: High

STEEP Segment: Social

This year’s trend development

Summary: Precision fermentation is redefining food ingredient production through microbial engineering for sustainable and scalable alternatives.

Current Situation: Precision fermentation uses engineered microbes to produce proteins and other compounds, currently focused on plant-based dairy and protein replacements. While in the development phase, it is already being used in niche products, with research expanding its potential applications in the food industry.

Expected Development: Over the next 4-6 years, precision fermentation will scale up, making specialty ingredients more affordable. Enhanced bioreactors and optimized microbial strains will improve efficiency and reduce costs, integrating these methods into mainstream food production.

Challenges: High production costs and securing regulatory approvals are significant challenges, along with consumer acceptance of lab-created food ingredients.

Time to Impact: 4-6 years

Potential Impact: High

STEEP Segment: Technological

This year’s trend development

Summary: Edible sensors are being developed to track food quality and safety from production to consumption, enhancing monitoring systems.

Current Situation: Edible sensors use micro-scale, ingestible technology embedded in food to track freshness, temperature, and contamination levels. While still in the prototype stage, this technology is gaining interest for its potential to revolutionize quality assurance and food safety.

Expected Development: In the next 6-8 years, integration with blockchain and IoT will enable seamless tracking of food products through the supply chain, enhancing transparency and reducing waste. This innovation will improve supply chain resilience and consumer trust in product quality.

Challenges: Challenges include reducing the cost of production, achieving widespread regulatory approval, and addressing consumer concerns regarding the safety of ingesting sensors.

Time to Impact: 6-8 years

Potential Impact: High

STEEP Segment: Technological

This year’s trend development

Summary: Stricter food labeling regulations are being introduced to provide clearer, more detailed information on nutrition, origin, and sustainability.

Current Situation: Current food labels often lack standardized details about nutritional content, sourcing, and environmental impact, leading to consumer confusion. Governments are beginning to address this gap with new regulations aimed at improving transparency.

Expected Development: In the next 2-4 years, mandatory labeling requirements will expand to include detailed sustainability and ethical information, encouraging food manufacturers to adopt transparent practices. This will help consumers make informed choices and increase trust in food products.

Challenges: Complying with new labeling regulations can raise costs for food producers, especially for smaller businesses that may struggle to meet the requirements.

Time to Impact: 2-4 years

Potential Impact: High

STEEP Segment: Political

This year’s trend development

Summary: Enzyme engineering is enhancing beverage flavor profiles and extending shelf life, reducing waste and improving product stability.

Current Situation: Enzyme applications are being explored in the beverage industry to break down undesirable components and amplify desired flavors. This technology helps create richer, more appealing drinks while naturally prolonging freshness without needing synthetic preservatives. Although currently in limited use, ongoing research aims to make enzyme engineering more cost-effective and widely applicable.

Expected Development: Over the next 4-6 years, targeted enzyme technology will advance, enabling customized enzyme blends for specific beverages. This will optimize taste, texture, and product stability, supporting a cleaner ingredient profile aligned with consumer health trends.

Challenges: High R&D costs and regulatory scrutiny over the use of food-grade enzymes pose challenges for scaling adoption, particularly for smaller producers.

Time to Impact: 4-6 years

Potential Impact: High

STEEP Segment: Technological

This year’s trend development

Summary: Advanced water management practices are being adopted by beverage companies to reduce water usage and support sustainability.

Current Situation: Beverage companies are beginning to implement water recycling, rainwater harvesting, and closed-loop systems to minimize water consumption. These efforts help meet sustainability goals and consumer expectations for environmentally friendly practices. However, the adoption of comprehensive water stewardship varies widely, depending on company resources and regional regulations.

Expected Development: In the next 4-6 years, investments in water-saving technologies will increase, with partnerships between beverage producers and NGOs to protect local water sources. Advanced water management will become a standard practice for leading companies, securing environmental and community goodwill.

Challenges: High costs and technological accessibility pose significant barriers, particularly for smaller brands or those in regions with limited infrastructure.

Time to Impact: 4-6 years

Potential Impact: Very High

STEEP Segment: Ecological

This year's trend development

Summary: Beverage brands are increasingly leveraging direct-to-consumer (DTC) models to control customer interactions and build loyalty.

Current Situation: The rise of online sales and subscription services allows beverage companies to bypass traditional retail channels. This direct access helps brands manage customer engagement, test new products quickly, and establish data-driven marketing strategies. While larger companies are adopting DTC, many smaller producers are finding it challenging due to logistics and scaling issues.

Expected Development: Over the next 2-4 years, more beverage brands will enhance their DTC strategies with personalized marketing, AI-based analytics, and innovative e-commerce solutions. This will facilitate better customer retention and data-driven decision-making, strengthening brand loyalty.

Challenges: Logistics, fulfillment scalability, and competition with established retail networks remain key obstacles, particularly for new entrants.

Time to Impact: 2-4 years

Potential Impact: High

STEEP Segment: Economic

This year's trend development

Summary: Biodegradable smart labels monitor food freshness and quality without adding to plastic waste.

Current Situation: Biodegradable smart labels are in the early stages of development, integrating sensors that detect food spoilage indicators like temperature and humidity. These labels offer real-time updates on food quality and can be composted, making them environmentally friendly. While the technology is still limited to trials and niche applications, interest is growing as companies seek sustainable packaging solutions.

Expected Development: In 4-6 years, biodegradable smart labels will become cost-effective and widespread, capable of tracking multiple parameters and supporting a transparent supply chain. As adoption increases, they will help reduce waste and promote eco-friendly practices, gaining popularity with consumers and regulatory bodies pushing for sustainable solutions.

Challenges: The main hurdles include production scalability, cost reduction, and ensuring sensor accuracy to maintain reliability in different environments.

Time to Impact: 4-6 years

Potential Impact: Medium to High

STEEP Segment: Technological

This year’s trend development

Summary: Turning waste into economic assets is creating new revenue streams in food and packaging.

Current Situation: Waste valorization, the process of converting waste into valuable products like bioplastics and animal feed, is being explored by companies looking to reduce environmental impact and tap into new markets. Initial projects are focused on food and agricultural waste, with successful case studies demonstrating reduced waste and added profitability.

Expected Development: In the next 4-6 years, the waste valorization market will expand, fueled by advancements in technology and stronger sustainability regulations. More companies will adopt these practices to align with environmental goals and generate additional income, integrating waste processing into their supply chains.

Challenges: High research and development costs, process scalability, and fluctuating market prices for secondary products can hinder widespread adoption.

Time to Impact: 4-6 years

Potential Impact: High

STEEP Segment: Economic

This year's trend development

Summary: New regulations mandate that companies disclose climate-related risks in their supply chains.

Current Situation: Regulations are emerging that require food distribution companies to report on climate risks affecting their supply chains. These disclosures help identify vulnerabilities and encourage mitigation strategies. While the practice is still gaining traction, it is becoming more prominent in regions with strong climate policies.

Expected Development: In 2-4 years, climate risk disclosure will become standard practice, influencing investment and operational decisions. This will push companies to adopt climate-resilient practices and improve transparency, making sustainability a core business consideration and fostering consumer and investor trust.

Challenges: The biggest challenges include high administrative costs, extensive data collection efforts, and the risk of negative market response if vulnerabilities are revealed.

Time to Impact: 2-4 years

Potential Impact: High

STEEP Segment: Political

This year's trend development