What’s next for Agribusiness, Food Ingredients and Animal Health? 2025 trends revealed
The Agribusiness, Food Ingredient, Nutrition and Animal Health sectors are poised for transformative shifts in 2025. While facing challenges stemming from a difficult macroeconomic climate, shifting geopolitics, evolving consumer demands, tightened regulations, and rapid technological innovation, these industries also have access to unprecedented opportunities. To thrive in this dynamic environment, capitalize on market trends, and differentiate themselves from the competition, companies must make and execute bold strategic decisions. The themes below offer actionable insights and potential new strategies for leaders in these industries.
Key themes for 2025: Cross-sector trends
There are several overarching themes are shaping 2025:
- Technology integration can drive efficiency gains and product customization: AI, IoT, and data analytics are revolutionizing production processes, supply chain management, and customer engagement. In 2025, AI’s role will deepen as it enables the personalization of offerings, such as customized feed formulations tailored to specific livestock needs or individualized human nutrition solutions for consumers. This shift boosts efficiency and productivity while fostering stronger customer connections through data-driven insights and precision delivery.
- Sustainability is “table stakes”: Sustainability has shifted from being a market differentiator to a fundamental customer expectation. Companies that fail to meet sustainability standards face tangible reputational, regulatory, and competitive risks. Leaders in sustainability, on the other hand, drive innovation across the supply chain, reduce environmental impact, and meet growing consumer and regulatory demands for sustainable and ethical products – all of which have the potential to generate shareholder value.
- Regulatory alignment to evolving standards: As regulatory landscapes evolve globally, compliance with emerging standards remains essential for market access and sustained growth. In Europe, stricter requirements are shaping the landscape, while in the U.S., a changing political landscape and uncertainty around the long-term regulatory direction make planning more challenging. Regardless of regional differences, staying ahead of these challenges, anticipating and reacting to regulatory developments will be critical to maintaining competitiveness.
Agribusiness: Sustainability and Precision Agriculture as growth drivers
The global crop protection market is undergoing fundamental strategic shifts, as companies respond to environmental, economic, and regulatory pressures. Key trends shaping the future of the industry include advances in precision agriculture, the rise of biological solutions, and efforts to strengthen crop resilience.
- Precision Agriculture Revolution: Technological advancements like real-time sensing, drone monitoring, and variable-rate application are revolutionizing crop management, making it smarter, more efficient, and more sustainable. By enabling the targeted application of synthetic pesticides, these innovations significantly reduce usage rates, thereby lowering environmental impact and aligning with regulatory trends and consumer preferences for sustainable farming practices. The widespread adoption of precision agriculture tools is expected to drive operational efficiencies and create new growth opportunities for industry players.
- Momentum in Biological Solutions: Biological alternatives, such as biopesticides and biofertilizers, are at the forefront of the agricultural revolution, propelled by regulatory restrictions on synthetic chemicals and growing consumer demand for organic farming. These solutions offer a promising path toward sustainability but must achieve price parity and demonstrate efficacy on par with synthetic products to realize their full potential. The transition from synthetic to biological inputs is well underway, but further innovation, investment, and scaling are essential to establish biologicals as the mainstream choice in sustainable agriculture. (Click here to read an interesting article on biostimulants.)
- Strengthening Crop Resilience: Advanced seed treatments and genetically modified seeds play a pivotal role in mitigating risks posed by climate change and soil degradation. By enhancing natural resistance to pests and environmental stressors, these technologies reduce the reliance on synthetic chemicals, supporting more sustainable and cost-effective farming practices. For companies, this signals a strategic shift, with increased focus on investments and innovation in resilient crop technologies. Companies that prioritize this area will be better positioned to meet the evolving needs of farmers, regulators, and consumers.
2025 Agribusiness Outlook
To stay competitive, companies should explore partnerships in precision agriculture technology and prioritize investments in biological solutions. These initiatives will enable firms to navigate the evolving regulatory landscape while meeting farmers’ growing demands for sustainability and efficiency. Industry leaders that adapt early will be better positioned to capture market share in this rapidly changing environment.
Food Ingredients: Sustainability, nutrition and health dominate the trends landscape
The global food ingredients and nutrition landscape is set to evolve significantly in 2025 and beyond, driven by consumer preferences, technological advancements, and sustainability imperatives. There is a growing interest in sustainable, clean nutrition, functional and health-driven foods, personalization, and alternative protein sources. Consumers look to the food industry to provide better nutrition options that promote health and well-being.
- Sustainable Nutrition: Consumers are increasingly seeking diets that are both healthy and environmentally friendly. This shift promotes nutrient-dense foods, regenerative agriculture practices, and efforts to reduce food waste, aiming to create a resilient and sustainable food system. This drives the innovation and sustainability agendas of food ingredient players.
- Functional and health-promoting products: Consumer demand for functional food ingredients targeting gut health, weight management, and cognitive function is projected to grow rapidly. Prebiotics, probiotics, and adaptogens are gaining popularity as consumers adopt a more proactive approach to health through diet. The “Ozempic Effect” is poised to further boost interest in weight-conscious products and products that support GLP-1 treatment. Players in the nutrition space need to assess opportunities in health and functional foods, leveraging their portfolios and developing innovative solutions to rapidly evolving demand.
- Alternative Proteins: Alternative proteins are progressing toward price parity with traditional animal proteins. However, challenges in replicating taste and texture persist, necessitating ongoing innovation to meet consumer expectations. Companies need to prioritize innovation and strategic partnerships to capitalize on emerging demand. The shift toward sustainable protein sources also reflects growing global commitments to reduce the environmental impact of food production, allowing players to contribute to sustainability goals while tapping into a fast-growing market.
- Technology trends and personalization: Emerging technologies, including cellular agriculture, 3D food printing, and vertical farming, are transforming food production methods. These innovations aim to enhance sustainability, improve food security, and meet the evolving demands of consumers. Advancements in technology also enable personalized dietary recommendations based on individual health data, genetics, and lifestyle. Companies that effectively leverage data and AI to develop truly customized solutions will be able to expand their opportunity space.
2025 Food Ingredients Outlook
Food ingredient firms will continue to explore opportunities in health and functional foods, nutrition, sustainability, and personalization. Competition in the higher-value-adding specialty food ingredient space is poised to intensify, and players will need a clear strategy and value proposition to differentiate in the market.
Animal Nutrition & Health: Reshaping Livestock Management
Shifts in dietary patterns, sustainability goals, and livestock health management are transforming the animal nutrition sector. Companies that adapt to these changes will be better positioned to lead in this evolving landscape.
- Focus on Sustainability: Methane-reducing feed additives, antibiotic alternatives, and natural probiotics are at the forefront of sustainable animal production. These innovations reduce environmental impact while meeting rising consumer and regulatory demands for ethical and eco-friendly products. Companies should go beyond product development to actively support farmers in adopting these solutions. This includes offering technical guidance, implementation training, and tools to measure and track environmental benefits. Companies that take a holistic approach to farmer support will be better positioned to achieve market leadership.
- Customized Livestock Nutrition: Precision feeding programs tailored to species, breed, and lifecycle stage are optimizing nutrition, minimizing waste, and improving profitability. Companies have an opportunity to go beyond selling nutritional products by partnering with farmers to ensure effective implementation. Providing tools for data-driven feeding strategies, personalized support, and measurable performance outcomes will help producers maximize benefits while fostering loyalty and long-term success.
- Proactive Health Management: Functional feed and immunity-boosting supplements are reducing disease risks and improving animal welfare, reflecting a shift toward preventive approaches. Companies must play an active role in supporting farmers to implement these practices. This includes providing guidance on adoption, ongoing technical support, and demonstrating the financial and operational benefits of proactive health management. Companies that foster a preventive health mindset will be well-positioned for long-term success.
2025 Animal Nutrition & Health Outlook
Winning players in this space will evaluate their supply chain and product offering to incorporate sustainable and precision-based solutions that reduce waste and improve livestock performance. By supporting farmers in adopting these innovations, companies differentiate themselves from the competition, while driving sustainable growth in the animal nutrition sector.
At a-connect, we understand that transformative trends bring both opportunities and challenges. We are dedicated to partnering with our clients, leveraging our deep expertise and forward-looking insights to help them successfully and confidently navigate change. Together, we aim to position our clients as industry leaders who can build a lasting competitive edge using their unique market position, with tailor-made support and advice.
