This article argues that 2026 will be a year of managed uncertainty rather than crisis or boom for food manufacturers. Interest rates are expected to ease somewhat but remain structurally higher than the pre-COVID era, meaning capital will still require discipline and strong justification. Raw material costs may stabilize or soften in some categories, but volatility will persist due to weather, geopolitics, and supply constraints, making predictability and risk management more important than chasing short-term price relief. Consumer behavior is expected to stay value-focused, limiting pricing power even as input and compliance costs continue to rise.

Rather than betting on a single economic outcome, the article stresses scenario-based planning: building conservative base budgets, testing downside and upside cases, and protecting investments that improve resilience (automation, supply continuity, quality systems). Ongoing trade uncertainty, labor tightness, packaging regulations, and emerging environmental compliance risks (like PFAS and EPR rules) are framed as structural costs manufacturers must plan around. Overall, success in 2026 will come from disciplined execution, flexible sourcing, and risk-aware decision-making—not from waiting for economic conditions to “normalize.”

Read the full article here.