Compliance and Technology: How Food and Beverage Companies Can Get Ahead in 2025

As we look toward 2025, food and beverage companies will need to balance regulatory adherence with ongoing technological investment. The good news is that embracing technology meets compliance demands and enhances operational efficiency.

Tashatuvango Adobe Stock 81721093
tashatuvango AdobeStock_81721093

As we enter the New Year, food and beverage stands out as one of the most important sectors in the EU. Among the largest of the union’s manufacturing industries, it is also the principal employer in half of the bloc’s 27 member states. The EU currently claims the distinction of being the world's largest exporter of food and beverage products. And while 60% of these exports are distributed within the single market, its impact extends well beyond the EU’s borders, reaching consumers worldwide.

In 2023, the European food and drink industry reached a significant milestone, achieving a turnover of €1.1 trillion and providing employment for 4.6 million people. It’s clear that the sector plays a vital role in bolstering the European economy, providing not only jobs but also fostering innovation and sustainability in food production and distribution.

Three predictions for 2025

Looking ahead, understanding potential shifts in this sector is essential. What follows is a brief survey of three major trends that we at Infor believe will shape the industry in 2025.

1.      Cybersecurity will no longer be seen as optional

Food and beverage companies will need to invest in robust security measures and consider cloud-based solutions for enhanced resilience to better protect their operations and secure their food supply given ongoing geopolitical tension.

Typically, companies in the sector that are perceived as "analogue” are more vulnerable to cyberattacks, including ransomware and potential disruptions from rogue actors, due to their reliance on outdated technology and less robust digital security measures.

Indeed, there have already been major cases of European food and beverage manufacturers falling foul of cyber criminals. For companies with weaker financial backing, such downtime could potentially spell the end for that business.

To mitigate this threat, food and beverage organizations should look to invest in cloud-based solutions as they often provide a higher level of protection than many organizations can achieve on their own. Why? Specialist expertise is a key factor. Cloud providers invest heavily in recruiting and retaining top-tier security experts who have dedicated their entire careers to strengthening cloud defenses and proactively addressing vulnerabilities. This concentrated focus on security, combined with the massive scale at which cloud providers operate, creates a level of expertise that's challenging for smaller organizations to replicate in-house. By utilizing the cloud, businesses can essentially "borrow" this elite security knowledge, benefiting from cutting-edge protection and continuous monitoring.

2.       Agility will be key to survival

Companies need to be able to adapt quickly to meet fast-changing consumer demands, retailer pressures, and regulatory requirements such as the EU Regulation on Deforestation-free Products (EUDR) and the Corporate Sustainability Reporting Directive (CSRD).

Respectively, these regulations impose stringent requirements on businesses to ensure their supply chains do not contribute to deforestation – which in turn necessitates comprehensive tracking and the verification of sourcing practices – and increase obligations around sustainability reporting, requiring businesses to provide more detailed disclosures on their environmental and social impacts. Using specifically designed solutions that are integrated with an organization’s IT landscape will help them to automate and structure this as much as possible, thus providing more agility.

But the ability to be agile won’t just help organizations navigate regulatory challenges as many are seeing their supply chains evolve (and must adapt to meet subsequent changes). With challenges including supply disruptions, the increasing cost of ingredients and labor, along with consumers shifting to lower priced private label products (and many more other aspects), food and beverage organizations will need to build in adequate flex to cope with what external market forces will throw at them.

3.       Technology will enable the evolution of the food and beverage sector

For food and beverage companies, the strategic use of technology will become even more important in 2025. In addition to increased  supply chain visibility, it will provide producers and distributors with real-time visibility and the ability to simulate different scenarios to make informed decisions to be able to negotiate effectively with retailers. Not only this, but increased use of technology will .facilitate the automation of routine tasks and provide deeper insights to shape business operations.

As the industry becomes more complex, organizations that effectively integrate technology to optimize their operations are likely to emerge as leaders, efficiently navigating challenges and capitalizing on opportunities in the market.

Embracing the opportunities at hand

As we look toward 2025, food and beverage companies will need to balance regulatory adherence with ongoing technological investment. The good news is that embracing technology not only meets compliance demands but also enhances operational efficiency and competitiveness. Businesses should therefore ensure that their strategies integrate these critical elements to remain at the forefront of the industry and make the best of the year ahead. 

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