Every year in August, Foodservice IP conducts a survey among its clients to gauge the current state of the industry and anticipate future trends. Our clients, spanning food, packaging, beverage, and equipment companies, provide invaluable insights into the challenges and opportunities they foresee. As we approach 2025, their responses reveal a mixed outlook, highlighting both the potential for growth and the significant hurdles that lie ahead.
From concerns over inflation and consumer behavior to the impact of the upcoming U.S. Presidential Election, these factors are shaping the industry’s landscape and influencing the strategic decisions of foodservice executives.
Food Company Outlook for 2025 is Mixed
One of the first questions we ask is about the outlook for foodservice-related revenues in 2025 compared to 2024. Nearly half of the respondents believe 2025 will be better than 2024, but almost the same number expect it to be worse.
Around 20% are uncertain. The reasons behind this outlook are not new: inflation, consumer traffic, supply chain costs, wage increases, and the U.S. Presidential Election all play a significant role.
Competitive Differentiation is Critical in 2025
Nearly 90% of our respondents indicated that competitive differentiation—or growth in an existing market—is the most important consultative need in the next 6-18 months. Other top needs include custom consulting, such as top-level advisory services, go-to-market assistance, and market entry insights.
The market is saturated with companies offering do-it-yourself benchmarking studies and menu analysis, but many agencies and firms lack the experienced staff necessary to translate these into actionable business strategies.
As budgets tighten, consulting and advisory services become even more crucial to avoid costly strategic mistakes based on C-level “gut” feelings.
Industry Research Firms Lack Real-Life Examples
Foodservice IP also inquired about frustrations or unmet needs with industry research and consulting firms. About 67% of respondents expressed dissatisfaction with the lack of industry activity insight—such as examples of related operator initiatives and trends within specific products and segments. It’s easy for researchers to get caught up in details, like portion control sauces, without considering the broader consumer and operator trends that support primary research.
The second biggest frustration was that most firms lacked the in-house resources to connect business implications to research findings. While Foodservice IP prides itself on addressing this gap, larger firms with established reputations are often relied upon too heavily, despite their shortcomings.
There is a notable gap in the labor pool, with many candidates lacking the ability to “speak” foodservice and quickly interpret results in a way that meets client needs. We often find talented individuals in the technology field who excel in statistical analysis and research tools but lack the business acumen to see the “big picture.”
Industry Health and Changing Consumer Attitudes Keep Executives Up at Night
When asked about the primary concerns keeping food executives up at night, the top two were industry health (57%) and changing consumer tastes (60%). We are witnessing a demographic shift where millennials and Gen Z are setting trends, while Gen X and Boomers still hold most of the away-from-home spending power.
Executives need to stay attuned to consumer trends that remain crucial—such as good-tasting food, value, trustworthy brands, and strong corporate responsibility—and find ways to emphasize these strengths.
Foodservice IP Listened
As we conclude our 2025 survey, we have already prepared our common interest studies for the coming year, which will be released soon. We greatly appreciate the feedback from those who participated and look forward to helping move your businesses forward.
Tim Powell is a Principal at Foodservice IP.
Foodservice IP is a professional services firm based in Chicago, aimed at delivering ideas for managers to guide informed business decisions. To learn more about FSIP’s Management Consulting Practice, click here.
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