ADM has announced a three-year extension of its partnership with Bayer to support soybean farmers in Maharashtra, India. The initiative was launched in 2022, aiming to strengthen sustainable soybean farming practices in the region. It successfully reached 25,000 farmers by May 2025, achieving its targets and laying a strong foundation for scaling further. With the newly announced extension, the programme will now scale fourfold to 100,000 farmers and expand its coverage from 35,000 hectares to 200,000 hectares. It will cover seven districts in Maharashtra, adding Nanded, Parbhani, Hingoli and Solapur to its original footprint of Latur, Dharashiv (formerly Osmanabad) and Beed. The partnership draws from sustainability framework the ProTerra Foundation. It focuses on five key areas of supply chain sustainability: customised production management, tailored spray programmes that emphasise pre-harvest intervals and biodiversity protection, professional implementation guidance, detailed crop management documentation and collaborative post-harvest pest management expertise. ADM’s cluster agronomist team receives regular training on comprehensive crop cultivation practices, including nutrient and pest management schedules. This enables the company to guide farmers in implementing sustainable practices while safeguarding the economic viability of farming communities. Bayer, a life sciences and agricultural specialist, led extensive training programmes to strengthen farmers’ capacity in good agricultural practices, biodiversity and sustainability. Through model demonstration plots and large-scale outreach, the company has already engaged thousands of growers. ADM said it has leveraged its established network in India – which spans origination, oilseed processing, commodities training, and animal and human nutrition – to deepen support for farming communities. This includes on-the-ground engagement through its Krishi Vikas Kendras, a network of more than 50 crop development and procurement centres. Amrendra Mishra, managing director of Ag Services and Oilseeds and country manager for India at ADM, said: “Our extended partnership with Bayer reflects a long-term vision to safeguard food systems and foster a resilient future”. “By leveraging ADM’s market linkages and global resources, we aim to equip 100,000 farmers with the tools to strengthen economic resilience, enhance sustainable livelihoods and lead the future of Indian agriculture through practices that advance environmental and supply chain sustainability.”

Sharon Bligh From climate resilience to public health and supply chain stability, the food system sits at the crossroads of some of today’s most urgent global challenges. Sharon Bligh, director of health & sustainability at The Consumer Goods Forum, argues that meaningful progress depends on collective action across the value chain – from farm to fork – and a renewed focus on practical, scalable solutions. Our world cannot function without food to nourish the population. The recent EAT-Lancet 2025 report offers a compelling perspective: the global food system alone holds decisive power in determining whether we can solve some of our biggest environmental and social challenges. The report shows that one-third of global greenhouse gas emissions come from food, while 40,000 early deaths could be prevented daily if more people adopted a healthier, planet-friendly diet. From supply chain stability to public health, the food industry sits at the heart of multiple interconnected issues. We can’t have healthy people on a sick planet or sick people on a healthy planet – the health of both are intimately connected. Through my role at The Consumer Goods Forum, I speak every week with leaders of FMCG and retail companies about the innovative approaches they are taking to unlock the potential of the food industry, and the realities they are grappling with. I can see the huge potential for our industry to keep improving how we grow, transport and consume food. The hurdles we face are clear – and now it’s about determinedly sourcing and scaling practical solutions. Starting at the source with farmers The journey to transforming the food system should begin at the farm level. Smallholder farmers produce 70-80% of the world’s food, yet they face immense threats from climate shocks and often struggle to meet their own food needs. The cocoa industry, for example, relies on African smallholder farmers who supply over 90% of global cocoa. Despite their central role, many live in poverty and lack access to nutritious food, resulting in poor health. Addressing these gaps through targeted nutrition and livelihood programmes can significantly improve farmer wellbeing and stabilise productivity. Workforce nutrition of smallholder farmers is not just a moral imperative, but a smart investment for businesses wanting to strengthen their supply chains. Equally important is tackling food loss at source. The Global Farm Loss Tool, developed by World Wide Fund for Nature (WWF), in partnership with the CGF, empowers growers to measure and reduce on-farm losses, helping to conserve resources, improve yields and increase profitability. Reducing waste before it enters the supply chain is one of the most efficient ways to cut unnecessary costs and emissions. Transport efficiency through collaboration Once food leaves the farm, it enters a complex web of logistics. Transport inefficiencies not only drive up costs, they also contribute to spoilage, emissions and supply chain disruptions. To tackle this, collaboration is key. Retailers, suppliers and logistics providers must work together to streamline operations, share data and optimise routes. By aligning incentives and investing in smarter infrastructure, the whole value chain can produce less waste, ensure lower emissions and drive better profit margins across the board. In the UK, for example, Mondelēz International reduced transport emissions and costs by working with a retail partner to introduce double-decker trailers, doubling pallet capacity per truck. This simple but effective change cut the use of 2,600 trucks last year alone. In Canada, the company has enhanced logistics with another retailer by optimising the pooling pallet supply to one of their distribution centres. These initiatives are only possible through collaborations. Empowering healthier, more sustainable diets At the consumer level, the challenge is both behavioural and systemic. Diets low in nutrients are driving a global health crisis, while unsustainable consumption patterns are accelerating emissions caused by food waste. The food industry has a powerful role to play in shifting this trajectory. Reformulating products, promoting plant-based options and making healthier choices more accessible and appealing are all part of the solution. When nutritious options are seen as desirable, choosing them regularly becomes natural. The food industry can shift behaviours and create lasting change by providing consumers with clear, consistent information for making healthier choices. Labelling, marketing and digital tools can help bridge the gap between intention and action, turning healthy and plant-based eating into a habit. A compelling example comes from our supermarket and manufacturing members, who are offering fresh meal kits and promoting healthier cooking. By bundling together ingredients for popular recipes such as vegetable curries or stir-fry noodles, these companies are managing their inventory more efficiently, reducing on-shelf waste, while making healthy meals more desirable. While the exact approach will differ from shops and markets, this is a sign that targeted intervention can create concrete changes. A call for collaboration Transforming how we grow, transport and consume food is not always about just doing more - it is about focusing on what matters most. To build a food system that is resilient and efficient, we must rethink how we work together. No company, government, or organisation can fix the food system alone. It is one of the most complex systems on Earth, involving farmers, manufacturers, retailers, policymakers and consumers. But this complexity only intensifies the need for collaboration. Creating a better food system together is a major piece of the puzzle to address some of our world’s biggest problems. I am confident the industry has the determination, ingenuity and capability to unleash this potential.

Steve Statler. In kitchens around the world, the simple act of checking a date label has become a surprisingly high-stakes decision — one that shapes household habits, retail operations and even global sustainability. Most consumers don’t trust expiration dates, yet they continue to follow them, discarding billions of pounds of perfectly edible food each year. This tension between perception and reality isn’t just a quirk of home life; it exposes a systemic flaw in the way we evaluate freshness and safety. As new technologies begin to illuminate the true condition of our food from farm to fridge, the industry stands at a turning point: we can continue relying on outdated labels, or we can transform how consumers, retailers, and regulators understand and preserve the food we depend on. Steve Statler, CEO of AmbAI, explains how AI, smart sensors and real‑time freshness data are reshaping food safety, sustainability and the global supply chain. At home, my wife and I live on opposite ends of the food‑safety spectrum. I’ll sniff yogurt weeks past its sell-by date and confidently declare it “perfectly fine,” while she promptly discards anything that crosses the printed threshold. Just yesterday, she tossed an unopened package of chicken into the trash. When I asked why, her answer was familiar: "The date says it's expired." Yet it looked perfectly fine and had been properly refrigerated the entire time. Where do you fall on that scale? Are you a cautious date‑follower or a rebellious smell‑tester? In a recent AmbAI‑YouGov survey, 66% of respondents identified as cautious, 23% as relaxed and 11% as extremely strict, which means tossing food even before the printed date. This small domestic debate reflects a staggering global paradox. While millions face hunger worldwide, Americans throw away 120 billion pounds of food each year, about 40% of the US food supply. Despite the fact that more than three‑quarters of consumers distrust expiration dates, 56% still discard food the moment it “expires,” even if it looks and smells perfectly edible. An outdated system we still trust Our current food‑date labelling system is outdated and inherently flawed. “Best before” labels were introduced nearly a century ago, with a surprisingly colourful backstory: legend has it that Al Capone pushed for expiration dates on milk after a relative got sick from spoiled dairy. Conveniently, he also happened to control the bottle printing business. Since then, the system has evolved to be built for consistency, not accuracy. Static estimates assume perfect handling conditions for food products, when the reality can be dramatically different. A carton of eggs refrigerated during its entire journey from farm to your kitchen might remain safe weeks beyond its printed date. However, that harmless-looking chicken left in a hot delivery truck for hours could be dangerous long before its "use by" date, with no visible signs of contamination. The economic and environmental impact Annually, this disconnect costs the average American family between $1,600 and $1,800 in wasted groceries. Globally, the numbers are staggering: food waste causes 8-10% of greenhouse gas emissions and consumes precious water, land, and energy resources. Recent events have only raised the stakes. Amid inflation that's driven up grocery prices since 2019, families throwing away perfectly good food feels increasingly indefensible. And as extreme weather events continue disrupting agriculture with growing frequency, protecting the existing food supply becomes even more critical. According to RTS research, food is the single largest component taking up space in US landfills, making up 22% of municipal solid waste. Smarter sensors: AI becomes ambient intelligence Early tools like temperature loggers and colour‑changing freshness indicators have appeared on food packaging, but they provide only momentary snapshots, not full farm‑to‑fridge monitoring. What’s now transforming operations for two of the world’s largest retailers is what Gartner analysts call “ambient intelligence.” This approach combines ultra‑low‑cost, battery‑free Bluetooth sensors that continuously track a product’s temperature from farm to refrigerator. In the near future, these smart stickers will communicate directly with AI‑powered apps on phones and smart speakers, offering real‑time freshness insights instead of relying on static printed dates. This approach is an example of what NVIDIA CEO Jensen Huang has described as the rise of "physical AI" – intelligent systems embedded in the physical world that interpret context and respond in real time. Picture milk cartons that alert you when they’ve been left out too long, or meat packaging that tells your phone exactly how many fresh days remain based on its real handling history — not just a conservative date printed weeks earlier. Our AmbAI‑YouGov research shows 88% of consumers would rather rely on freshness data tied to actual storage conditions than static labels. Early pilots of ambient intelligence systems in retail settings have already cut waste while improving food safety compliance. One grocery chain testing smart monitoring in its dairy department could save hundreds of thousands of dollars per store each year, all while reducing customer complaints about spoilage. The takeaway is clear: consumers don’t want to guess, they want information they can trust. Industry and policy momentum The regulatory landscape is also rapidly evolving. The FDA's Food Safety Modernisation Act Rule 204, with compliance expected by mid-2028, mandates enhanced traceability for high-risk foods. And while Digital Product Passports aren't yet required for food in Europe, the precedent is clear – accountability and transparency are becoming regulatory priorities. Major retailers are also responding. Walmart, Kroger and Tesco have all launched pilot programmes exploring dynamic pricing and smart labelling to reduce waste. Meanwhile, technology providers, including Microsoft, Google and Amazon, have announced initiatives to incorporate food freshness data into their consumer platforms. The path forward Transitioning from static expiration dates to dynamic freshness tracking won’t happen overnight. But the convergence of advanced technology, consumer demand and regulatory momentum is driving change faster than ever. Our AmbAI‑YouGov survey found that 72% of consumers feel guilty throwing out food that might still be safe, yet uncertainty forces them to discard it anyway. The benefits go far beyond waste reduction. Verified handling data across the supply chain allows retailers to protect margins, farmers to be rewarded for quality and consumers to make confident, informed choices. For the food industry, the message is clear: those who embrace this shift will gain a competitive advantage while building a more sustainable system. For consumers, the reward is equally compelling — less waste, lower costs and greater trust in food safety. The technology is ready, consumers are ready, and the planet can’t wait.

Plant-based meat alternative brand Juicy Marbles has launched Umami Burger in the UK, a new high-protein patty made with a ‘whole-food-forward’ ingredients list. The brand describes its latest offering as the ‘ultimate veggie patty,’ aiming to provide the same versatility, appealing texture and nutrition as Juicy Marbles’ more meat-like whole cut range. It is made with ‘wholesome’ ingredients including quinoa, flax, miso, fermented Koji barley and seitan. A single 100g patty delivers 22g of plant protein, 5g of fat and 179 kcal. Designed for convenience and flexibility, the patty can be fried in five minutes, suitable for serving as a traditional burger as well as slicing into sandwiches, salads, wraps and bowls. According to Juicy Marbles, the product is rich in umami flavour but not overpowering and offers a ‘naturally tender yet springy’ bite. The team’s goal was to develop a product that ‘hit the sweet spot between classic veggie burgers and hyper-realistic cuts’. Luka Sinček, co-founder of Juicy Marbles, commented: “The problem comes when classic options like tofu, tempeh and bean burgers require a lot of prep to taste good or miss the mark on texture”. “What’s great about Umami Burger is it delivers a satisfying bite, lends itself to a huge variety of dishes with basically no prep, and sports a nutrient profile you can feel good about eating every day.” The plant-based meat alternatives industry has seen a surge in veg-forward innovation in the last year, with other ‘hyper-realistic’ alt-meat brands such as This, Beyond Meat and Moving Mountains diversifying their portfolios in 2025 to include more whole food-based and cleaner label options. This reflects the growing awareness of ultra-processed foods and consumer preferences for more ‘natural’ options. Despite this, appetite for the ‘ultra-meaty’ versions remains. Juicy Marbles’ Thick-Cut Filet steak alternative product exceeded sales expectations, selling out 86% of initial stock at Waitrose within four days of its launch in 2023 and later becoming Tesco’s fastest-selling plant-based meat in Tesco’s history. Launched just in time for Veganuary, Umami Burger – priced at £4.95 per two-pack of patties – can now be found in 225 Tesco stores across the UK, as well as via Tesco’s website.

Better-for-you snacking brand Junkless is expanding its protein bar portfolio with the introduction of a new flavour, Peanut Butter Chocolate Brownie. The new SKU joins the Junkless Protein Bar range, which the company describes as protein-forward bars designed to deliver “candy-bar-level” taste without artificial ingredients. Each 55g bar contains 15g of protein, 6–8g of fibre and between 2–5g of sugar, with 5–9g of net carbs depending on flavour. The Peanut Butter Chocolate Brownie variant combines a chocolate brownie-style base with crunchy peanuts, coated in a peanut butter-flavoured shell. Junkless says the product is free from artificial colours, flavours, preservatives and sugar alcohols, aligning with growing consumer demand for cleaner ingredient decks in functional snacks. The launch comes as protein and fibre continue to gain prominence in everyday snacking, driven by increased health awareness and, more recently, the influence of GLP-1 medications on eating habits. As consumers look for smaller, more functional eating occasions, brands are responding with products that balance satiety, nutrition and indulgence. Junkless reports strong momentum across its core granola bar business, citing year-on-year household growth of 51% and its position as the number one granola bar brand by dollar growth across measured channels. The Peanut Butter Chocolate Brownie flavour will be available from January 2026, via junklessfoods.com, priced at $29.99 per 12-bar box, with wider availability on Amazon expected shortly thereafter. The full Junkless Protein Bar lineup now includes five flavours: Peanut Butter Chocolate Brownie, Chocolate Peanut Butter, Chocolate Chip Cookie Dough, Birthday Cake and Cookies & Cream.

China has announced that it will impose provisional anti-subsidy duties of up to 42.7% on dairy products imported from the European Union, intensifying trade tensions widely viewed as retaliation for the EU’s tariffs on Chinese-made electric vehicles. The duties, which took effect from Tuesday, 23 December 2025, range from 21.9% to 42.7%, with most affected exporters facing rates just under 30%. Products targeted include unsweetened milk and cream, as well as fresh and processed cheeses such as French Roquefort and Camembert. Notably, the product list does not include infant formula, one of the EU dairy sector’s highest-margin export categories to China. China’s Ministry of Commerce said its investigation found evidence that EU dairy exports were subsidised and had caused material injury to domestic producers. The European Commission rejected China’s findings, describing the investigation as being based on "questionable allegations" and "insufficient evidence" and calling the provisional duties "unjustified and unwarranted". The Commission, which oversees EU trade policy, confirmed it had already lodged a complaint with the World Trade Organization more than a year ago. A further investigation is due to conclude on Saturday, 21 February 2026. The current decision is provisional and could still be revised in the final ruling. Trade tensions between Brussels and Beijing escalated in 2023 when the European Commission launched an anti-subsidy investigation into Chinese electric vehicles. Tariffs were imposed in October 2024, triggering what many observers see as retaliatory measures by China against EU exports, including brandy, pork and now dairy. China’s Ministry of Commerce said negotiations over the EU’s EV tariffs resumed in last month. The European Commission said it continues to explore replacing EV tariffs with minimum price commitments, provided they effectively address subsidy-related harm and are workable. China imported dairy products worth $589 million that fall under the scope of the investigation in 2024, broadly unchanged from 2023 levels. Around 60 European companies will be subject to tariffs between 28.6% and 29.7%, including Arla Foods, owner of brands such as Lurpak and Castello. Italy’s Sterilgarda Alimenti will pay the lowest rate of 21.9%. FrieslandCampina faces the highest duty at 42.7% and said it remains committed to “constructive dialogue” with China’s Ministry of Commerce as the investigation continues.

A new report from The Vegan Society, unveiled today (2 January 2026) for Veganuary, offers insights into how vegan diets are shaping global culture and F&B industry innovation. Titled Veganism Around the World, the report combines international research to build a comprehensive database offering insights into where veganism is gaining ground – and how this is impacting the food and beverage industry. The report is based on original polling across ten countries, and detailed profiles for 21 countries around the globe.   Consumer behaviour Polling showed that while veganism remains uncommon, ‘flexitarianism’ – whereby consumers intentionally reduce their consumption of meat and seafood, but do not eliminate completely – is now mainstream. 16-30% of consumers polled identified with this way of eating, indicating a shift toward more environmentally friendly diets. India was highlighted as a global leader, with 14% of people identifying as vegan and 26% as vegetarian. Overall sentiment toward veganism worldwide was found to be ‘neutral to positive,’ suggesting favourable conditions for category growth, with India the most favourable and Japan the least. Google Trends data showed that searches for ‘veganism,’ which peaked around 2020, have stabilised. However, they continue to outpace ‘vegetarianism’ and, aside from brief surges, even ‘climate change’.   Leaders in foodservice Across 21 countries, New Zealand was identified as the most vegan-friendly travel destination, topping vegan-friendly dining per capita (approx. 345 per million) due to many mainstream restaurants offering vegan options. Taiwan leads on fully vegan restaurants per capita (14.8 per million), while Iceland was the stand-out country within Europe, with 43% of restaurants offering at least one vegan dish. Portugal followed Taiwan as the second leader globally for fully vegan restaurants per capita, despite ranking third for seafood consumption. Vietnam, Malaysia and Singapore also stood out on totals and per capita availability, with many Buddhist-influenced countries offering rich vegan and vegetarian foodservice options due to cultural norms. The US had the most vegan restaurants in absolute terms (1,717) and now hosts the largest plant-based ecosystem overall by total company count.   Business and innovation insights The US is home to 615 businesses producing plant-based, cultivated or blended protein products, cementing its place as leader by total business count. However, it ranked much lower per capita, with the report noting cooler domestic demand in the country, pushing producers toward exported growth. When measured per capita, Singapore leads with 7.44 companies per million people, followed by Israel at 6.66 and the Netherlands at 5.03, all supported by robust science and food-tech industries. The Netherlands also leads Europe on per capita spend for plant-based meat, and alongside the UK and Germany, combines deep company bases with strong retail sales. Asia is also seeing surging demand, with consumers in India and China nearly twice as likely as those in the US to say they are ‘very or extremely likely’ to buy plant-based meat. This suggests major growth potential for exporters and local innovators. However, The Vegan Society acknowledges that innovation density does not automatically reduce animal product consumption. Israel, despite being a leader in the alt-protein industry, still ranks among the highest per capita consumers of poultry and beef.   Veganism: Moving into the mainstream? The Vegan Society, a UK charity founded in 1944, said its findings show veganism is ‘increasingly understood and adopted worldwide’. The report will inform the organisation’s Vegan Trademark programme, which is now carried by over 70,000 products globally, helping consumers to identify products that have been certified as free from animal-derived ingredients. Claire Ogley, head of campaigns, policy and research at The Vegan Society, said: “This report is the first comprehensive investigation into the growth of veganism around the world. The data shows that veganism is no longer a niche movement but is gaining traction cross-culturally with restaurants, businesses and consumers driving its growth globally.” She noted that though the word ‘vegan’ was only coined 80 years ago, it is “widely understood” and used globally. “It’s also promising to see that despite stereotypes, people’s feelings towards veganism are mostly neutral, and actually lean positive in many cases,” she added. “This surge in interest is reflected in search trends and the rapid expansion of vegan dining options and product innovation worldwide – signs of veganism moving into the mainstream.”

Ready-to-drink brand Nolo has launched what it claims is the UK’s first decaf cold brew oat latte, combining speciality-grade taste with functional prebiotic benefits. The launch marks two category firsts for the brand: a ready-to-drink decaf cold brew designed to match the flavour profile of caffeinated speciality coffee, and a coffee product delivering 6.75g of plant fibre per can, around 20% of an adult’s recommended daily intake. The functional element comes from Nolo’s proprietary prebiotic blend of Jerusalem artichoke and citrus fibre. The brand says the formulation delivers more fibre than many functional sodas currently on the market, while also contributing to the drink’s creamy mouthfeel. Nolo’s Decaf Cold Brew Oat Latte contains no added sugar or sweeteners, with less than a teaspoon of naturally occurring sugars from oat milk. The drink is plant-based, dairy-free and contains 65 calories per can. “We wanted a decaf that was both an upgrade in taste and a functional boost,” said co-founder Binky Felstead. “Nothing like that existed, so we made it.” The product launches in two flavours, Classic and Caramel Swirl, and is currently available direct-to-consumer via wearenolo.com. An introductory bundle is priced at £39.99 for two 12-packs, one of each flavour. Nolo is now seeking premium retail, grocery and speciality coffee listings, positioning the product for consumers looking for convenience, functional benefits and high-quality flavour without the caffeine hit. Founded by brothers Max and Pierre Darnton alongside Felstead, Martin Franklin and Tanner Johnston, Nolo is targeting coffee drinkers who enjoy the ritual and taste of coffee but want greater control over their caffeine intake.

NewPrinces, the parent group of food and beverage group Princes, has acquired 100% of the corporate capital of Italian baby food specialist Plasmon from The Kraft Heinz Company for €124.3 million. Plasmon’s business includes the manufacturing, packaging, marketing and distribution of baby food and speciality nutrition products, including popular Italian baby food brand Plasmon, alongside other brands such as Nipiol, BiAglut, Aproten and Dieterba. Under the deal, Princes Italia has entered into an operating lease agreement with Plasmon, effective from 1 January 2026. Princes Italia is required to make annual rent payments of €3 million, as well as 1.5% of revenues derived from the operation of the business as valuable consideration. All operations relating to the Plasmon business will now be carried out by Princes Italia. The parties may, at a later stage, assess the potential transfer of Plasmon’s assets directly to Princes Group. The lease has an initial duration of three years and can be renewed at Princes Italia’s sole discretion by giving six months’ notice to Plasmon. Founded in Milan in 1902, Plasmon is among the top early childhood nutrition brands in Italy, producing a range of biscuits, purees, cereals and snacks in the country. In the fiscal year ended 31 December 2024, it generated revenues of €170 million. Plasmon’s high-volume Latina site produces approximately 1.8 billion Plasmon biscuits annually for the Italian market, and employs around 300 people. The plant’s employees will continue to operate as usual, with the facility also to continue producing Heinz Baby Food for the UK market under a co-packing agreement. The deal reunites Plasmon’s current business perimeter with Princes Group’s Ozzano Taro production facility, acquired from The Kraft Heinz Company in 2015. The plant was historically a Plasmon factory and continued to manufacture Plasmon infant formula until recently. Plasmon’s Latina site, which specialises in biscuits, jars and pouches, is complementary to the Ozzano Taro plant, which focuses on liquid milk and infant powdered formula. The transaction will enable Princes Group to leverage the newly integrated manufacturing and R&D footprint to accelerate the development of new formulations, and expand its offering in the premium and organic segments. It will also allow for increased production capacity overall, alongside operational flexibility through maximising utilisation across both sites. Leveraging Princes’ established presence in over 60 countries and its distribution network in key European markets, the Plasmon brand will benefit from further growth and internationalisation. Angelo Mastrolia, chairman of Princes Group, said: “The integration of the Plasmon Business represents a strategically important step for Princes Group. It reinforces our leadership in baby food and specialised nutrition, builds on long-standing industrial expertise and reunites highly complementary assets within the group.” “We believe this transaction strengthens our European industrial platform and supports the continued development of our core categories over the long term.” Top image : © Plasmon

Tony Guilfoyle The energy drink industry is undergoing a dramatic shift as consumers increasingly prioritise health and wellness beverages, fuelling the rapid surge of sugar-free options. With younger generations leading the charge, this shift is continuing to reshape the entire category at dramatic speed. Tony Guilfoyle, CCO at Celsius Energy Drinks, explains how sugar-free products are not only driving market growth and innovation but also signalling a broader movement towards healthier functional beverages that meet the evolving needs of today’s health-conscious consumers. As competition grows more fierce, brands that capitalise on this growing trend will emerge as the true winners in capturing long-term loyalty, especially from critical Gen Z and Millennial consumers. Health and wellness as the drivers of consumer decisions and market opportunities As consumer behaviours continue evolving post-pandemic, they are gravitating toward fitness and wellness and choosing functional food and beverage products that support their health goals. This is helping fuel the robust popularity of ready-to-drink energy products, which are the leading drivers of growth in the overall ready-to-drink beverage market. And there are no signs this consumer trend is losing momentum. The global wellness economy has reached an impressive $6.3 trillion and is projected to grow approximately 7.3% annually, potentially reaching nearly $9 trillion by 2028. In the US alone, 84% of consumers now consider wellness a top priority in their daily lives and seek products that align with their lifestyle needs – and 47% of consumers aim to reduce their sugar intake in the coming year. Younger generations are the primary catalyst behind this impressive growth. Consider that Gen Z and Millennials constitute just over 36% of the adult US population, but account for more than 41% of annual wellness spending, and Gen Z consumes less alcohol compared to other generations, or avoids it completely. Strong indicators that younger demographics are redefining what health and wellness truly mean. Beyond consumer choices, brands must also consider actions from governments and public health organisations that are also instigating change. In the UK, the Soft Drinks Industry Levy, implemented in 2018, is credited with removing over 45,000 tonnes of sugar from beverages through reformulation efforts. Restrictions under the Health and Care Act of 2022 could limit HFSS (High in Fat, Sugar, and Salt) food and beverage advertising on TV before 9 p.m. and ban it entirely in digital spaces starting October 2025. France is also in the process of increasing sugar taxes, which would also include artificial sweeteners. Globally, the World Health Organization has launched a bold "3 by 35" initiative, aiming to halve the consumption of sugary drinks, alcohol and tobacco by the end of 2025. This convergence of consumer demand and regulatory pressure underscores the urgency of sugar-free innovation. Sugar-free now outselling traditional varieties – proof of a changing market The meteoric rise in the popularity of sugar-free energy drinks is responsible for more than 70% of the market’s growth since 2022, now constituting almost half of all energy drinks sold in stores. According to Jefferies, sugar-free energy has blurred the lines between energy and functional beverages, expanding the energy opportunity for brands and driving significant growth. Dollar sales for sugar-free energy drinks surpassed full-sugar varieties for the first time last year, and the momentum of these better-for-you functional beverages drove 87% of category growth in Q2 2025. A significant share of innovation happening in the US is emerging from sugar-free formulations. Notably, Alani Nu’s recent Cotton Candy LTO (Limited Time Offer), a sugar-free variety, became among the best-selling energy drinks. Cotton Candy set records across multiple retailers in regard to launch performance, both from a dollar sales, velocity and share perspective. In many cases, it was a top performer by orders of magnitude and led to national share gains of over 1.2 points sequentially week-over-week, and the brand has maintained the majority of those gains, sitting at .7 points above where it was pre-launch. This is on the tail of multiple other successful launches in Sherbert Swirl and Watermelon Wave, which both set records and saw monumental share gains during their launches. Image: Alani Nu The rise of sugar-free energy drinks represents a monumental, generational opportunity for brands. Younger consumers, particularly Millennials and Gen Z, are actively factoring in health and wellness in every purchasing decision, driving the intense demand for beverages that offer energy and functional benefits without the negative health impacts of sugar – and aligning with broader trends of reduced sugar consumption and healthier lifestyles. As the wellness economy continues its impressive expansion, agile brands making smart investments in sugar-free innovations are strategically positioned to capture long-term loyalty from these influential health-conscious consumers, making sugar-free not just a trend but an engine of growth for the entire industry.

As we welcome the New Year, we’d like to thank you for your continued trust and support. We wish you a happy, healthy and successful year ahead, and look forward to working together in the months to come. Warmest wishes, The FoodBev team

Cannabis-infused beverages are moving from novelty to legitimate category contender across many US states. Once limited by grassy flavours, inconsistent dosing and sluggish onset times, the segment is now benefiting from significant formulation breakthroughs, shifting consumer preferences and new distribution pathways. Tetrahydrocannabinol (THC)-infused beverages currently represent a slim share of total cannabis sales in the US, yet they are among the fastest-growing product groups in adult-use markets. Analysts project sustained double-digit growth through the next decade, fuelled by better product quality, expanding regulated retail channels and rising demand for alcohol alternatives. This growth aligns with broader beverage trends as moderate drinkers and 'sober-curious' younger adults are seeking functional social beverages without the drawbacks of alcohol. But as THC beverages' global growth trajectory collides with a fragmented policy landscape, the space remains a study in high potential and high risk. Formulation changes unlocking the category The biggest shift has occurred at the formulation level. Nano-emulsion and water-soluble cannabinoid technologies have fundamentally changed how THC interacts with liquid. By breaking cannabinoids into microscopic particles, manufacturers can create beverages that are stable, clear, consistent in dose and fast-acting. The result is drinks that more closely resemble RTD cocktails, seltzers and flavoured sparkling waters than the bitter, oily cannabis beverages of years past. Typical onset times now fall between 10–20 minutes, a major improvement in consumer predictability. This technological leap has opened the door to rapid SKU expansion, from sparkling waters and ‘cannabis cocktails’ to teas, wellness shots and powdered drink mixes, with precise milligram dosing and improved sensory performance. A rapidly growing market A report from Whitney Economics underscores the scale of the opportunity this category offers. The firm estimates the total potential US THC beverage market to be around $9.9 billion to $14.9 billion, with current legal sales between $1.0 billion and $1.3 billion, signalling enormous headroom for growth. The report also found that there are an estimated 500-plus brands active across the US, 100 of which are currently selling through marijuana dispensaries, and that most of these are bringing in an average $2 million in annual revenue. “The emergence of THC beverage products has provided a solution that helps backfill declining revenues across multiple industries, including beer, wine and distilled spirits,” said Beau Whitney, chief economist at Whitney Economics. Considering THC beverages are legal in just 28 US states, permitted with restrictions in nine and completely illegal in six, the growth of the category in recent years is unprecedented. So, what's driving the market? Changing attitudes to alcohol Sober-curious lifestyles, health-conscious behaviours and younger adult drinking declines are reshaping beverage consumption. THC drinks are marketed as providing a sociable option without hangover of alcohol, often also containing less calories than alcoholic options. Improved taste and sensory quality Modern emulsions, flavour systems and sweeteners have erased many of the sensory issues that once hindered the category – today’s THC beverages taste more like popular mainstream products than medicinal tinctures. Investment and strategic partnerships Major beverage companies are entering through white-label deals, equity investments and formulation partnerships. Their involvement is raising expectations around quality control, branding and supply chain standards. Confusing legal status and a looming crackdown The category’s highest risk is its regulatory volatility. Hemp-derived beverages, in particular, exploded due to a loophole in the US’s 2018 Farm Bill. These products, often sold in states where recreational cannabis remains illegal, leveraged hemp-derived delta 9 THC and entered mainstream retail channels with fewer restrictions than alcohol. However, in November 2026, US lawmakers capped THC levels in hemp-derived beverages at 0.4mg per container, effectively eliminating most products currently on the market. The measure, championed by Senator Mitch McConnell, was included in a federal funding bill signed by President Trump and responds to concerns over intoxicating hemp products reaching general retail. The bill also bans synthetic cannabinoids, and provides a one-year grace period for compliance. Larger alcohol producers, facing pressure from declining consumption, have also been pushing for tighter oversight to level the playing field. Theo Terris, CEO of hemp-derived THC-infused beverage brand Uncle Arnie’s, told FoodBev: " Manufacturers are in a bit of limbo. Current and planned harvests could be illegal in a year, so they’re closely monitoring the situation while figuring out next steps, including reformulation, testing and compliance planning." Besides manufacturers and brands, Terris said the tighter regulations will impact hemp farmers, retailers, distributors, consumers, testing labs, industry associations and regulators. With the one-year grace period in effect, he added that for now, it is "business as usual" for the brand. "Distribution partners continue selling our products, and we’re actively engaging with associations to promote sensible regulations around age gating, testing and THC limits," he continued. "We will adjust the strategy as we gather more info in the coming weeks and months."   Across the globe, regulations are often in contradiction. It is particularly fragmented in the US. While they are legal in some states, state-licensed THC beverages cannot cross state lines, while hemp-derived beverages face impending federal restrictions and inconsistent state interpretations. Elsewhere in North America, THC beverages are federally legal in Canada, but highly regulated with strict potency limits and packaging rules. In Europe, it is another story of inconsistency. Most countries permit only low-THC hemp products, a few are piloting regulated cannabis programmes. For companies wanting to sell and distribute THC beverages, regulatory literacy is crucial, with laws across different nations and states dictating everything from processing and packaging to distribution and pricing. International expansion efforts Despite regulatory pressures, there are two commercial models emerging: licensed THC beverages sold through regulated cannabis retailers with a restricted distribution but more regulatory clarity, and hemp-derived THC beverages sold through grocery, convenience, e-commerce, bars and restaurants in some jurisdictions. These have wider access but much higher legal risk. Most major brands are expanding internationally under carefully regulated pilot programmes. US-based Wana Brand’s announcement that its cannabis gummies will launch through Zurich, Switzerland's cannabis pilot programme at the end of 2025 highlights the growing international appetite for controlled, research-driven cannabis consumption models. These early-stage frameworks are laying the foundations for beverages. When it comes to expansion, there are several risks companies need to monitor. Rapid, unpredictable shifts in rules and legislation is the biggest challenge, with dosing and safety issues being another. High formulation costs also make beverages inaccessible to lower-income consumers. In order to tackle these challenges, beverage companies should build a strong regulatory plan to avoid constant reformulations and partner with advanced formulation labs for nano emulsion stability, shelf life validation and consistent dosing. THC beverages sit at the intersection of three powerful trends: alcohol moderation, functional beverage innovation and cannabis legislation. Unlike traditional beverage categories, success here requires navigating complex legal frameworks and consumer education. Companies that can stay ahead of regulatory pressures and have the time and finances to invest in this ever-changing landscape could be set to change the future of social drinking.