Five Trends to Watch in Food Manufacturing Strategy for 2026
Written by Krystle Morrison for Food Industry Executive
As published in Food Industry Executive
Key takeaways:
- In 2026, artificial intelligence (AI) will shift from small pilots to the “brain” of food factories, under rising expectations for governance, safety, and compliance.
- Traceability, transparency, and sustainability mandates will become core design constraints for food manufacturing strategy, impacting packaging, sourcing, and plant operations.
- Geopolitical shocks, climate events, and labor shortages will make supply chain resiliency and flexible automation non‑negotiable capabilities.
As 2026 approaches, food and beverage manufacturers are operating in a uniquely volatile environment. Labor shortages, tariffs, and supply chain disruptions now collide with rapid advances in AI, new sustainability and packaging rules, and rising consumer expectations for transparency and trust.
To understand what this means for food manufacturing strategy in 2026, we’re taking a closer look at what’s just around the corner. Here are five forces to watch that will shape the way food manufacturers invest, design plants, and compete.
Trend 1: AI becomes the plant’s “brain,” but under stricter rules
AI is moving from a side project to the central nervous system in food manufacturing. But as it becomes embedded in core processes, questions about regulation, governance, and trust are intensifying.
“In 2026, AI will continue to shift from an experimental tool to a core component of operational efficiency, quality, and product development, fundamentally transforming how food is made,” says Tyler Marshall, RVP of Manufacturing at Advantive.
Engineering and design firm Black & Veatch similarly expects AI to increasingly coordinate how plants produce, package, and manage quality, acting as the decision layer that keeps automated systems aligned with safety and performance standards.
Meanwhile, regulators and stakeholders are starting to treat AI decisions — about quality, scheduling, and even supplier risk — the way they treat food safety decisions today.
Mikael Bengtsson, Industry & Solution Strategy Director, Food & Beverage at Infor warns that “similar to adhering to food safety regulations, compliance with AI regulations is essential to build trust and avoid legal penalties,” especially as issues such as copyright and discriminatory algorithms emerge.
What leading food manufacturers will do in 2026
Embed AI into existing digital threads, not isolated tools:
- Predictive maintenance on critical equipment
- AI-assisted quality decisions using in-line and lab data
- Dynamic production and labor scheduling
Implement AI governance, including:
- An inventory of where AI is used and who owns it
- Data lineage and access controls
- Human-in-the-loop checks for high-risk decisions
Use AI for innovation, not just efficiency: McKinsey finds that “AI high performers” focus on growth and transformation, not just cost cutting.
Questions for your 2026 strategy offsite
- Which AI use cases touch food safety, labeling, or regulatory compliance and how are they governed?
- Do we have a clear AI policy that can withstand future audits and evolving laws?
- Where could we redesign workflows so AI is embedded in decision-making, not bolted on?
Trend 2: Radical transparency and traceability become non-negotiable
Consumers increasingly want to know what’s in their food, where it came from, and under what conditions it was produced. And regulators are heading the same direction.
“Customers are demanding more information about what’s in their products, which means a company’s real-time traceability and transparency capabilities across their supply chain are increasing in importance,” says Bengtsson. “Failing to track products end-to-end has a direct impact on both food safety and consumer trust.”
Marshall notes that regulations such as the U.S. Food Safety Modernization Act (FSMA) 204 Traceability Rule are accelerating investments in digital traceability. He points out that digital systems can help manufacturers respond quickly to audits and proactively prevent violations, protecting both consumers and brands.
On the market side, traceability is booming. Analysts project the food traceability market will triple in value by 2034, driven by demand for safety, transparency, and real-time monitoring technologies such as QR codes and IoT sensors.
Proactive operations as part of transparency and trust
Looking beyond labels and lot codes, transparency is also increasingly about how reliably plants run.
John Robertson, Vice President of Food and Beverage at Life Cycle Engineering, connects evolving mandates to a shift in maintenance strategy:
“The increasing number of FDA inspections makes reactive maintenance an unacceptable liability for food safety and quality. To meet evolving transparency demands and reduce recall-related waste, a component of sustainability compliance, will compel a rapid shift to proactive operations and maintenance. This ensures continuous operational quality and reduces risk, making operations and maintenance a key pillar of company trust for consumers.”
John Robertson, Vice President of Food and Beverage at LCE
In other words, traceability, transparency, and proactive operations are converging. Plants that can’t demonstrate stable, well-maintained processes will struggle to convince regulators and consumers that their products are consistently safe.
What “good” traceability looks like in 2026
An end-to-end digital traceability backbone:
- Standardized key data elements from farm to fork
- Capture of events like cooling, packing, and receiving in real time
Proactive use traceability data:
- Early detection of quality risks and yield loss
- Supplier and line-level performance insights
Transparency turns into a value proposition:
- QR codes that unlock sourcing and sustainability stories
- “Trust dashboards” for major retail and foodservice customers
Black & Veatch notes that the most resilient companies will “combine technology, transparency and regional agility to maintain business continuity amid uncertainty.”
Questions to ask
- Could we fully trace our highest-risk SKUs within hours if a recall were required?
- Are our suppliers ready to meet FSMA 204 and similar global rules, or will they slow us down?
- Are we still relying on reactive maintenance in areas that directly affect food safety?
- How can we use transparency to justify premium pricing or win new contracts?
Trend 3: Sustainability mandates tighten, powered by efficiency
Sustainability may not be the loudest topic in every 2026 strategy discussion, but it hasn’t gone away. It’s steadily showing up in the form of specific packaging, chemical, and emissions rules that affect plant design, materials, and cost, whether or not “sustainability” is on the slide.
In 2025, about one-third of U.S. states took regulatory action on food-contact materials, focusing on:
- Phase-outs of PFAS (per- and polyfluoroalkyl substances) in packaging and cookware
- Bans on polystyrene foam and other single-use plastics
- New extended producer responsibility (EPR) laws for packaging
Black & Veatch stresses that the manufacturers making real progress are not chasing dramatic headlines, but quietly building future readiness:
“Sustainability will become a leading focus for food and beverage companies – but with operational efficiency leading the charge, and not dramatic net zero goals… They’re building capability by installing infrastructure that enables sustainability later without paying the full cost today.”
In other words, even when other fires (like labor, cost, and supply chain issues) feel more urgent, leading companies don’t lose the pulse on sustainability. They keep investing in practical, efficiency-led moves that keep them ahead of tightening mandates.
On the planning side, Bengtsson emphasizes that predictive, data-driven planning and scheduling can help manufacturers optimize resources and reduce waste, which turns sustainability targets into everyday operational decisions rather than stand-alone initiatives.
How leaders will approach sustainability in 2026
They will embed sustainability metrics into daily operations, not just ESG reports:
- Energy, water, and waste per batch or SKU
- Packaging recyclability and material mix per line
They will design with future rules in mind:
- Selecting materials that can meet tomorrow’s PFAS and plastic bans
- Anticipating stricter EPR schemes and carbon reporting
They will invest in modular, future-ready utilities:
- Infrastructure that can later integrate renewables or alternative refrigerants
- Smart metering and analytics to continuously optimize resource use
Questions to ask
- Which regulatory changes (e.g., packaging, emissions, water) are most likely to affect our cost structure by 2028?
- Which “two-for-one” projects reduce both emissions and operating cost?
- Are we designing new facilities to meet future standards, not just current codes?
Trend 4: Next-generation automation economics — flexibility and OT security
The traditional automation playbook focused on running a small set of products as fast as possible. In 2026, the winning question becomes: “How fast can we pivot?”
Black & Veatch puts it bluntly, “The manufacturers that excel in the next decade won’t be the ones that make a single product the fastest or the cheapest. They’ll be the ones that can pivot fast to whatever comes next.”
Marshall points out that this shift is happening against a tough backdrop of labor shortages, tariffs, and ongoing supply chain volatility, meaning automation has to solve for uncertainty as much as for speed.
Bengtsson sees generative AI and intelligent automation transforming not only the plant floor but also planning and reporting. He notes that, when implemented with clear goals, these tools can change how companies work and increase competitive advantage.
Automation economics now include OT cybersecurity
As robotics and connected equipment proliferate, automation economics increasingly depend on how secure OT networks are.
Robertson cautions that next-generation automation without security creates a dangerous blind spot, exposing proprietary process data and making production environments more vulnerable. He argues that this reality is pushing OT security higher up the org chart:
“Protecting core proprietary formulas and ensuring uptime elevates OT cybersecurity to a C-suite priority. Industry leaders must ensure that security measures are integrated deep into the production environment to mitigate risks of IP theft and catastrophic production line manipulation. In 2026, OT security should transform from an avoidable technical issue into an important business mandate.”
John Robertson, Vice President of Food and Beverage at LCE
In short, automation ROI will increasingly be tied to cyber resilience, not just throughput.
What this means for 2026 capital and tech decisions
Forward-looking companies will:
- Start with connectivity and data, then layer in robotics and AI.
- Target high-variability, high-pain areas first, such as changeovers and short runs, manual quality inspections, and seasonal or promotional packaging.
- Select automation that supports rapid product and pack changes, not just maximum speed.
- Build security into automation projects from day one: secure architectures for OT networks, segmentation between IT and OT environments, and continuous monitoring for abnormal behavior on lines.
Questions to ask
- Do our automation investments make it easier or harder to handle SKU proliferation?
- Where could AI-assisted automation (such as computer vision, scheduling, and reporting) deliver faster ROI than traditional robotics?
- How quickly can we reconfigure lines when a major customer changes formats, claims, or channel mix?
- Is OT cybersecurity explicitly part of every automation business case?
Trend 5: Geopolitics turns resilience into a design principle
The food and beverage industry now operates amid tariff shocks, conflicts, sanctions, and extreme weather that can upend carefully planned networks overnight. A recent study described the latest wave of U.S. tariff hikes as the largest since the 1930s, sending shockwaves through global supply chains and making traditional planning models far less reliable.
Black & Veatch emphasizes that this uncertainty is here to stay and that the most successful food and beverage companies will treat resilience as a principle, not just a reactive recovery plan. They’ll combine technology, transparency, and regional agility to keep product flowing even when conditions change suddenly.
Bengtsson underscores just how complex these networks have become:
“The food and beverage industry operates within a complex supply network, where a single product often depends on multiple supply chains and global suppliers. Being able to anticipate disruptions, and pivot sourcing or production plans swiftly, is essential.”
He points to manufacturers that use predictive technology to spot disruptions early, source alternatives, and adjust production schedules as being better equipped for today’s environment — and sees these abilities as requirements, not “nice-to-haves.”
What resilient strategy looks like in 2026
Mapping and monitoring critical supply chains:
- Identify single points of failure for key ingredients and packaging
- Track tariff exposure and climate risk by region
Building regional agility rather than relying solely on inventory:
- Multi-source high-risk inputs
- Design recipes with acceptable alternative ingredients
- Develop “sister” facilities that can back each other up
Using predictive planning tools to run what-if scenarios around tariffs, weather events, and demand spikes.
Questions to ask
- Which 10 ingredients or packaging materials create the biggest geopolitical or climate risk for our top SKUs?
- How fast can we reformulate or respec if a key supplier or country becomes unavailable?
- Are our supply chain dashboards oriented around risk signals, or only cost and service levels?
Beyond the five trends: From product-centric to consumer-centric, resilient networks
Taken together, these trends point to a deeper transformation in food manufacturing strategy.
Marshall argues that manufacturers must rethink their orientation:
“To redefine their strategies in 2026, food manufacturers must pivot from being product-centric to consumer-centric by leveraging technology to deliver products that are personalized, ethically produced, and provide a positive, convenient experience.”
The common thread:
- Trust (safety, transparency, ethics)
- Technology-enabled flexibility (AI, automation, planning)
- Resilience by design (supply chain agility, future-ready infrastructure)
Companies that embed these into their 2026-2028 roadmap will be better positioned not just to survive volatility, but to grow through it.
FAQ for food manufacturing leaders
Q: If we’re early in our AI journey, where should we start in 2026?
A: Start with one or two focused use cases that solve real pain points, such as predictive maintenance, automated quality checks, or faster reporting.
Make sure you:
- Have clean, accessible data for the chosen process.
- Define clear success metrics (e.g., fewer breakdowns, fewer defects, time saved).
- Put basic AI governance in place (including who owns the model and how results are reviewed).
As Bengtsson notes, choose partners who “prioritize transparency, auditability, and the ability to adapt to regulatory shifts.”
Q: How do we balance AI innovation with tightening AI regulation?
A: Treat AI regulation the way you treat food safety:
- Assume you will need to prove how AI-driven decisions were made and which data they relied on.
- Keep a simple inventory of AI systems, their purpose, and accountable owners.
- Document human review steps for high-risk decisions (e.g., release of product, supplier changes).
This creates a foundation to innovate confidently while staying ahead of emerging rules.
Q: What does “digital traceability” look like in a legacy facility?
A: You don’t need a brand-new smart factory to get started. Focus on:
- Capturing core data (lots, suppliers, process conditions, operator actions) at critical points.
- Connecting existing systems — ERP (enterprise resource planning), warehouse management, quality, and production — so data flows end to end.
- Using scanners, tablets, and upgraded labels to close the biggest visibility gaps
Over time, you can layer on more advanced tools like IoT sensors and AI-driven anomaly detection as the data foundation matures.
Q: We’re mid-sized. How can we afford sustainability and automation investments?
A: Three practical approaches:
- Prioritize “two-for-one” projects that improve cost and sustainability (such as waste reduction, energy optimization, and water reuse).
- Invest in modular technologies so you can start small and expand as benefits are proven.
- Leverage partner ecosystems (e.g., OEMs, engineering firms, and software providers) that bring templates, financing options, and proven playbooks.
As Black & Veatch notes, the winners “build capability by installing infrastructure that enables sustainability later without paying the full cost today.”
Q: What capabilities should be on our 2026-2028 roadmap?
A: Most food manufacturers should target:
- AI-ready data and governance
- End-to-end digital traceability, especially for high-risk products
- Predictive planning and scheduling that incorporate risk and sustainability
- Flexible, intelligent automation, not just high-speed lines
- Supply chain risk sensing and scenario planning across tariffs, climate, and logistics
If these capabilities aren’t clearly visible on your roadmap, 2026 is the right time to revisit it.
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