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2026 Food & Beverage Outlook: The Trends Reshaping the Industry

5 minute read

The food and beverage industry is heading into 2026 with more momentum, pressure, and complexity than ever. Consumer expectations are shifting at record speed, technology adoption is accelerating unevenly, and supply chains are continuing to transform. The result? Organizations are forced to make big decisions to reshape both their strategies and operations.

Catena Solutions leaders recently gathered to discuss the trends shaping the year ahead. Their insights reveal an industry that is innovating rapidly but also having trouble keeping up.

Keep reading for a look at the biggest food and beverage trends expected to define 2026.

#1: The Better-for-You Movement is Becoming Unavoidable

The push for “better-for-you” products is no longer a trend, it is an expectation. And it’s affecting far more than protein and fiber—it’s spreading across categories, manufacturing, packaging, pricing, and ingredient strategy.

Consumers increasingly choose products that appear healthier, even when they may not actually be healthier. Brands that can tell a compelling story are winning shelf space and gaining loyalty in the space.

But 2026 will bring more complexity as regulation accelerates the shift.

Governments are tightening standards around artificial colors, additives, and labeling. Many companies are getting ahead of the curve, removing long-used ingredients to maintain customers. One recent example: Cheetos and Doritos have already begun phasing out neon artificial dyes.

“The healthy train has left the station and is barreling through everything from manufacturing to positioning. It will be an even bigger theme in 2026 than it is now.”

Amy Knigge, Digital, Creative & Marketing Practice Director at Catena Solutions

#2: SAP ECC Sunsets in 2027. Are F&B Companies Running Out of Time?

The clock is ticking for SAP users: SAP will officially sunset ECC support at the end of 2027. Yet as of late 2024, only 39% of ECC customers have fully migrated to S/4HANA. Gartner predicts half of the global customer base will not upgrade in time.

For food and beverage companies, which run some of the most complex, regulated, and integrated manufacturing processes, the transition is even more daunting.

A typical migration affects procurement, quality, compliance, production, warehouse operations, finance, trade promotion, and more. Delaying the upgrade only increases the risk of integrators and expert resources becoming much harder to secure.

“I’ve seen S/4HANA upgrades completed in 12 months and I’ve seen others take three years. One client finished in 11 months, but 90% of their senior leaders turned over afterward from burnout trying to do their day job and upgrade SAP at the same time. That’s why securing the right resources and dedicating team members as soon as possible is crucial.”

Dave Minor, VP of Delivery at Catena Solutions

#3: Brands Are Reconsidering Automation in Foodservice

Automation is spreading quickly across quick-service and fast-casual restaurants. More than half of U.S. QSRs are on track to adopt at least one automation solution by the end of this year. That said, some early adopters are reconsidering:

• Sweetgreen has begun moving away from fully automated “Infinite Kitchen” setups after finding that automation reduced the hospitality their customers wanted.
• Taco Bell is reevaluating its drive-thru AI efforts after high-profile glitches, including a viral moment where a customer was able to order 18,000 waters, raised questions about system reliability.

Consumers reinforce these decisions: Over 60% of diners still prefer human interaction for greetings, personalization, order clarification, or resolving issues.

“The future of restaurant service isn’t fully automated or fully human. It’s a hybrid model. AI will do what it does best—speed and accuracy—while humans do what they excel at: empathy and connection.”

Marisa Vrona, Senior Client Engagement Director at Catena Solutions

#4: F&B Manufacturing is Behind on Technology but Can’t Ignore AI Any Longer

Much of the industry still operates with aging equipment, legacy systems, manual workflows, or tribal knowledge. Many plants use decades-old, manual, and Excel-based MES or planning tools. Since technology transformations are daunting, and many plants have unofficial processes and tenured employees, there’s been a hesitancy among organizations to upgrade.

But competitive pressure, labor shortages, rising costs, and curiosity are driving increased modernization. In fact, the Institute of Food Technologists predicts that 50% of food and beverage companies have plans for significant investments in AI and supply chain technologies in 2026.

A few use cases manufacturers are exploring include:

• Predictive maintenance
• AI-driven trade promotion effectiveness
• Automated quality detection
• AI-driven production scheduling
• Digital twins for capacity planning
• Intelligent inventory optimization
• Smart labor scheduling and forecasting

“Historically, technology followed a defined problem. Now, many companies are beginning with AI and asking a different question: what opportunities can this unlock for us?”

Geoff Coltman, SVP at Catena Solutions

#5: The Planning Skills Gap Is Becoming a Business Risk

Advanced planning tools have evolved dramatically, but the workforce has not kept pace. Many organizations rely heavily on consensus demand planning—getting teams aligned—rather than leveraging deeper statistical forecasting, algorithm selection, or machine learning capabilities.

This is putting pressure on companies to either upskill their planners or fall behind on forecasting accuracy, service levels, and inventory optimization. This is especially critical as 46% of manufacturing leaders reported significant challenges in filling planning and scheduling roles.

“The tools have surged ahead, but the workforce hasn’t. Without the right planning skills, companies can’t unlock the value of the technology they buy.”

Geoff Olsen, Supply Chain Practice Director at Catena Solutions

#6:  Divestitures Are Outpacing Acquisitions as Companies Simplify

After a decade defined by acquisitions, consolidation, and portfolio sprawl, large food and beverage companies are now breaking apart.

Examples include:

• Unilever, which is spinning off its global ice cream division (Ben & Jerry’s, Magnum, Wall’s) into a standalone company as part of a cost and focus reset.
• Kraft Heinz, which recently announced plans to divest slower growth businesses to focus on higher-margin, more specialized product lines.

Other companies, including PepsiCo and Nestlé, have been working to quietly divest smaller brands that no longer align with strategic priorities.

“Big food conglomerates are realizing their value comes from specialization. Being the best at one thing is more valuable than being decent at everything.”

Paul Owen, Human Capital Practice Director at Catena Solutions

#7: Cost-Conscious Consumers are Reshaping Pack Sizes and Frozen Growth

Consumers remain highly price sensitive going into 2026. Food inflation may have slowed, but shopper trust has not fully returned. Two major behaviors are reshaping the market:

• Pack size strategy is becoming a growth lever: Families are increasingly buying larger value packs to save per-unit costs, while Gen Z gravitates toward smaller, portion-controlled options with lower entry prices.
• Frozen food convenience continues to surge: Frozen and refrigerated convenience foods are outperforming center store categories. Sales growth is fueled by reduced food waste, high value compared to takeout, improved quality of frozen meals, and frozen meals appealing to healthy consumers.

“Manufacturers are learning that cost consciousness doesn’t mean trading down quality. It means delivering flexibility in pack size, price point, and convenience.”

Rich Medrano, Revenue Growth Excellence Practice Director at Catena Solutions

#8: Sustainable Packaging Pressure Intensifies, and Some Companies Are Quietly Pulling Back

Environmental regulation is tightening globally, and packaging is in the spotlight.

New laws in the U.S., such as Extended Producer Responsibility (EPR) programs and state-level requirements, are forcing manufacturers to redesign materials, increase recyclability, and report environmental impacts more transparently.

But sustainability is expensive, and not all early commitments were realistic. Some large brands, like PepsiCo and Coca Cola, have revised their sustainable packaging goals after realizing the cost and operational changes required at scale.

“Planet-friendly packaging is great for the brand story, but expensive in reality. The leaders in 2026 will be the ones who innovate without compromising operations.”

Amy Knigge, Digital, Creative & Marketing Practice Director at Catena Solutions

Conclusion: 2026 Will Be a Pivotal Year of Reinvention

The food and beverage landscape is entering a transformational chapter. It’s clear that the leaders in 2026 will be those that adapt quickly, invest boldly, and build organizational resilience across the plant floor, finance function, consumer experience, and more.

To learn how Catena Solutions can help you with your initiatives, get in touch with our team.