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: Focus on enhancing soil microbiomes is growing as a method for sustainable crop production and soil health restoration.

Current Situation: Advances in DNA sequencing have deepened our understanding of soil microbial communities, revealing their crucial roles in nutrient cycling and plant health. However, translating this knowledge into practical applications is challenging due to the complexity of soil ecosystems and variability across different environments.
Efforts are underway to develop biofertilizers and biostimulants that harness beneficial microbes, but their effectiveness can be inconsistent in real-world conditions. Additionally, standardizing research methods and overcoming legal constraints remain significant hurdles.

Expected Development: Future trends point toward integrating biotechnology, nanotechnology, and data sciences to engineer soil microbiomes for enhanced sustainability.

This includes creating microbial consortia tailored to specific crops and environments, and employing precision agriculture techniques for targeted application. Collaborative efforts among scientists, policymakers, and farmers are anticipated to establish best practices and regulatory frameworks, facilitating the adoption of microbiome management strategies.

These advancements aim to reduce reliance on chemical fertilizers and pesticides, promoting more resilient and productive agricultural systems

Challenges: Standardization of Protocols: Developing consistent methods for studying and applying soil microbiome management is difficult due to diverse soil types and environmental conditions.
Temporal Variability: Soil microbial communities change over time, complicating the assessment of management practices' long-term effectiveness.
Legal and Regulatory Barriers: Navigating varying legal frameworks can hinder research and the implementation of microbiome-based solutions in agriculture.

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: Smart packaging integrates technology that monitors food quality, enhances shelf life, and communicates with consumers, revolutionizing food preservation and safety.

Current Situation: While QR codes and freshness indicators are present, innovations like active packaging with sensors that react to environmental changes and communicate with IoT devices are still in early stages.

Expected Development: Widespread adoption of packaging that can track temperature, humidity, and spoilage indicators, linking this data with consumer apps and supply chain systems for better transparency and waste reduction.

Challenges: Development costs and standardization are barriers, along with consumer trust and potential data privacy concerns.

Time to Impact: 4-6 years

Potential Impact: High

STEEP Segment: Technological

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: Beverage companies are implementing advanced water management practices to reduce water usage and support environmental sustainability.

Current Situation: Beverage companies are ramping up water stewardship efforts, focusing on reducing water use, replenishing local sources, and supporting communities. PepsiCo, for instance, aims to save billions of liters annually and achieve a "net water positive" impact.
Partnerships with groups like WaterAid help promote clean water access and sustainable practices. However, challenges include regulatory scrutiny, public backlash over water use in local areas, and managing water usage across supply chains.

Companies like Coca-Cola have faced criticism for adjusting environmental goals, impacting public trust. Despite progress, aligning business goals with environmental and community needs remains a key focus.

Expected Development: In the next few years, beverage companies will step up efforts to use water responsibly and give back to local water sources. They’ll adopt new technologies to save water in their factories and work with communities to solve shared water challenges. Clearer reporting on water use will help build trust with consumers and investors.

Stricter rules from governments will push companies to be more sustainable. Water-saving practices will also be extended to farmers and suppliers, reducing the overall water impact of production. These efforts will make water stewardship a key part of their environmental and business goals.

Challenges: Balancing Business and Community Needs: Ensuring sufficient water availability for both company operations and local communities can be difficult, particularly in regions facing water scarcity.
High Implementation Costs: Upgrading facilities with advanced water-saving technologies and replenishment systems requires significant investment, which may be a barrier for smaller companies.
Complex Supply Chains: Managing water use across diverse and dispersed suppliers, especially in agriculture, adds complexity to achieving meaningful reductions in the overall water footprint.

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