Report: Tariffs, Food Safety Fuel Brand Operator Anxiety
Food brand operators are sweating more than the summer heat these days.
From tariffs to regulatory moves impacting sourcing and food safety, Dataessential One’s Midyear Trend Report illustrates some of the most pressing topics companies are tracking and adapting to in the first half of the year.
Tariff Uncertainty Plagues Outlook, Pricing
It’s been a challenge keeping up with the revolving door of tariff news coming out of the White House since President Donald Trump took over in February. Even before April’s “Liberation Day,” operators were already hedging for the impact import taxes would have on supply chains.
According to Dataessential’s survey, 52% of operators find it difficult to keep track of new developments related to tariffs, with 66% of survey participants indicating the taxes are negatively affecting the U.S. economy.
Not only do the import taxes impact how brands forecast sourcing from abroad, but also they directly affect cost calculations for packaging materials.
It’s not just the operators sweating every time a new directive is issued from Washington. Seventy-four percent of consumers are concerned about the impact of tariffs. This is showing up in pricing and purchasing data.
Despite a slight reprieve in April, food inflation is up 3% in the last 12 months, according to the U.S. Bureau of Labor Statistics Consumer Price Index. For the second straight month, the food at home index rose 0.3% in June.
Food Safety and Regulatory Issues
Beyond tariffs and pricing headwinds, new food safety regulations are causing headaches for more than half (53%) of survey respondents, who agreed these rules are often difficult to understand and implement.
While concerns over ultraprocessed foods and petroleum-based synthetic food dyes stand at the forefront of the Make America Healthy Again (MAHA) ideology, new directives are in contrast to a shrinking of the agencies overseeing food safety.
With 70% of consumers concerned about issues related to commercial food safety, a hobbled FDA that tracks foodborne illness outbreaks will likely only increase anxiety.
