The biggest risks food and beverage manufacturers face in 2025

What risks are food and beverage manufacturers prioritizing for the year ahead?

This report summarizes the major concerns shaping boardroom agendas and operational priorities based on the 2024 annual reports of 14 of the world’s largest food & bev companies.

From inflation and supply chain pressures to shifting consumer expectations and regulatory changes, this article highlights the most common industry-wide challenges for 2025.

This analysis is designed to help manufacturing leaders benchmark their own risk landscape against the market's leading players.

Overview of the general risk landscape

Across the food and beverage industry, manufacturers acknowledge another year marked by inflationary pressure, supply chain volatility, and shifting consumer behavior.

While several posted strong financial performance, most warn of an unpredictable year ahead. The five most common risk themes include inflation, regulatory pressures, supply chain disruption, cybersecurity, and rapidly changing consumer preferences.

But first, let’s look at the 14 companies we analyzed for this report.

Individual company risk summaries

This section outlines the top risk considerations as disclosed by each of the 14 companies analyzed. It includes direct excerpts and summaries from their annual reports, with a focus on the concerns they identify for the year ahead.

AB InBev

NYSE: BUD

2024 revenue: $59.8 billion (up 0.7% year-over-year)

AB InBev identifies risks tied to continued soft consumer demand in China and Argentina, which impacted 2024 volumes. While revenue grew in most other markets, the company highlights dynamic operating environments as a continued risk. They remain focused on scaling digital platforms like BEES, a B2B e-commerce platform designed to streamline sales and customer relationships for retailers, and driving premiumization, focusing on premium brands, but warn that macroeconomic volatility and geopolitical instability could challenge growth in 2025.

Unilever

NYSE: UL

2024 revenue: $63.2 billion (up 2.0% year-over-year)

Unilever highlights transformation risks tied to its Growth Action Plan 2030 and the planned separation of its ice cream division into a standalone business called Magnum Ice Cream Co. The company also points to regulatory pressures across plastics, product formulation, and data protection. Unilever calls out cybersecurity threats, organizational complexity, and execution risk as areas of focus as it aims to build a leaner, faster business model.

Kerry Group

OTC: KRYAY

2024 revenue: $7.86 billion (down 0.66% year-over-year)

Kerry identifies risks from consumer demand shifts toward clean-label products (products with easy-to-understand labels) and scrutiny of ultra-processed foods. The company is monitoring the impact of anti-obesity drug trends on food categories. Digital disruption, AI-driven innovation, and cyber threats are also noted as critical risk areas.

PepsiCo Inc

NYSE: PEP

2024 revenue: $91.5 billion (up 4.2% year-over-year)

PepsiCo highlights risks associated with retail channel shifts, including the rise of e-commerce and retailer consolidation. They note ongoing exposure to commodity cost volatility and inflationary pressure across global markets. Cybersecurity and digital transformation risks remain a focus, as does regulatory uncertainty tied to global tax reforms and packaging sustainability commitments.

The Coca-Cola Company

NYSE: KO

2024 revenue: $47.1 billion (up 3% year-over-year)

The Coca-Cola Company highlights risks tied to inflation, global market volatility, and shifting consumer behaviors. They also note ongoing geopolitical risks, including developments in Ukraine and the Middle East, which could impact supply chains and market stability. Cybersecurity, regulatory changes, and tax uncertainties are also emphasized as ongoing areas of concern.

Hershey

NYSE: HSY

2024 revenue: $11.2 billion (up 0.3% year-over-year)

Hershey reports strong category momentum but acknowledges risks from shifting consumer behaviors and elevated cost pressures. The company sees significant opportunity in better-for-you and indulgent snacking but warns that market volatility and inflation could impact margins. Execution of its transformation program and innovation pipeline are positioned as essential to future success.

Campbell's Co.

NYSE: CPB

2024 revenue: $9.6 billion (down 3% year-over-year)

Campbell’s Co. identifies risks related to cost inflation, supply chain volatility, and changing consumer preferences, particularly in their meals and snacks categories. They are managing these risks by optimizing their brand portfolio and investing in marketing and innovation. Additionally, they highlight the operational risk of integrating recent acquisitions and realizing anticipated synergies.

Kraft Heinz

NYSE: KHC

2024 revenue: $25.8 billion (down 3.0% year-over-year)

Kraft Heinz outlines risks tied to inflation, supply chain reliability, and competitive market pressures. They note challenges in predicting consumer demand and maintaining strong retail relationships amid shifting consumption patterns. Cybersecurity and digital transformation risks are also flagged, along with risks associated with global regulatory compliance, particularly in food labeling and health claims.

Kellanova

NYSE: K

2024 revenue: $13 billion (down -2.8% year-over-year)

Kellanova highlights risks related to operational complexity following the separation of its North America cereal business. They emphasize inflationary cost pressures, supply chain challenges, and increased focus on brand differentiation in highly competitive categories. Regulatory compliance, particularly in labeling and health claims, is also noted as a growing concern.

Mondelēz International

NASDAQ: MDLZ

2024 revenue: $36.4 billion (up 1.2% year-over-year)

Mondelēz identifies geopolitical instability, commodity price volatility, and inflation as key risks for 2025. The company also highlights risks related to channel shifts, including changing retailer relationships and consumer purchasing behaviors. Cybersecurity and regulatory compliance, particularly in emerging markets, remain priority areas for risk management.

Fonterra

NZX: FCG.NZ

2024 revenue: $13.94 billion (NZ$22.82 billion, down 7.2% year-over-year)

Fonterra points to global dairy market volatility as a key risk, particularly fluctuating demand from major importers like China. They emphasize the strategic need to retain scale in their New Zealand milk supply base to protect operational efficiency. The company also highlights portfolio review activities, including the potential divestment of parts of their consumer and foodservice businesses, to better align with long-term cooperative priorities.

Nestlé

OTC: NSRGY

2024 revenue: $104.17 billion (CHF 91.4 billion, down 1.8% year-over-year)

Nestlé outlines risks related to raw material inflation, energy costs, and geopolitical instability. They also highlight risks from regulatory changes, particularly in health claims and packaging sustainability. Nestlé is actively managing operational risks tied to supply chain resilience and digitization while also focusing on consumer health trends and affordability as strategic priorities.

General Mills

NYSE: GIS

2024 revenue: $19.86 billion (down 1.18% year-over-year)

General Mills highlights cost inflation, supply chain disruption, and shifting consumer preferences as ongoing risks. The company also notes competitive pressures from private label brands and new market entrants. Regulatory compliance, particularly related to food safety and labeling, remains a key risk factor, along with execution risks in transforming their portfolio to meet health and wellness trends.

Sysco

NYSE: SYY

2024 revenue: $78.8 billion (up 3.3% year-over-year)

Sysco emphasizes risks associated with labor availability, supply chain constraints, and commodity price volatility. The company also highlights strategic execution risks tied to its transformation initiatives and expansion in specialty and international markets. Cybersecurity, data privacy, and regulatory compliance across multiple jurisdictions are identified as ongoing operational risks.

Common risk themes across food and beverage companies

This section identifies patterns in the 14 food and beverage manufacturing companies' risk perception.

1) Cost Inflation and commodity price volatility (14 of 14 Companies)

Cited by all 14 companies, rising input costs for raw materials, energy, packaging, and logistics continue to put pressure on margins and pricing strategies.

2) Supply chain disruption and operational resilience (14 of 14 Companies)

Highlighted by all 14 companies, they all point to risks such as geopolitical instability, transportation bottlenecks, labor shortages, and raw material availability as ongoing challenges to supply chain stability and business continuity.

3) Changing consumer preferences and market dynamics (12 of 14 Companies)

Identified by AB InBev, Unilever, Kerry, PepsiCo, Coca-Cola, Hershey, Campbell’s Co, Kraft Heinz, Kellanova, Mondelēz, Nestlé, and General Mills. Shifting consumer demands for health-oriented, sustainable, and convenient products require companies to adapt their portfolios, reformulate products, and address category-specific challenges.

4) Regulatory and compliance pressures (11 of 14 Companies)

Noted by Unilever, Kerry, Kraft Heinz, Mondelēz, Nestlé, PepsiCo, Kellanova, Fonterra, Sysco, AB InBev, and The Coca-Cola Company. Increased regulations around food labeling, health claims, environmental standards, plastics, and global tax reforms pose compliance challenges across markets.

5) Cybersecurity and digital transformation risks (10 of 14 Companies)

Mentioned by AB InBev, Unilever, Kerry, PepsiCo, Coca-Cola, Hershey, Kraft Heinz, Mondelēz, Kellanova, and Sysco. Companies emphasize the importance of strengthening digital infrastructure, managing data privacy, and protecting against cyber threats while pursuing digital growth strategies.

Conclusion

The 2025 risk disclosures from 14 leading food and beverage manufacturers reveal a sector under continued pressure from inflation, supply chain disruption, regulatory change, and shifting consumer preferences.

While these risks are broadly shared, several companies face unique operational and strategic challenges. Leaders across the sector are balancing immediate pressures with long-term investments in digital capabilities, portfolio transformation, and sustainability.

Comparing these risk priorities can help other manufacturers reflect on their exposures and readiness for the year ahead.

Note: This report includes companies listed outside the NYSE, specifically Kerry Group (OTC: KRYAY), Fonterra (NZX: FCG.NZ), and Nestlé (OTC: NSRGY). While their shares trade on non-U.S. exchanges, their annual reports provide complete and substantive risk disclosures suitable for this analysis.