Letter from the editor: Food-tech tackles today’s threats, but creates new challenges

Rapid technological advancements are reshaping every aspect of the CPG industry – from how key ingredients and products are produced and packaged to how consumers discover and purchase foods and beverages.

Many of these innovations address challenges central to companies’ ability to feed a growing global population despite external threats to key ingredients, such as climate change’s impact on cocoa yields or the environmental toll of traditional animal protein production.

Other solutions promise to ease financial strain in an era of economic turmoil.

But as essential and helpful as these advances are, they simultaneously introduce new operational and strategic complexity that if ignored could be just as fatal to business as the initial threats.

In this month’s special edition – food-tech solutions for a more sustainable and secure food system – we explore how food-tech is helping the industry navigate immediate threats and how companies can counterbalance subsequent shifts to the rules and related risks.

For example, biotech advancements offer potentially more sustainable ways to meet the world’s growing demand for protein while reducing the negative environmental impact associated with raising animals for food. But as the nascent category advances it faces regulatory and financial challenges, which Deputy Editor Deniz Ataman examines in a global snapshot that highlights how divergent national policies are shaping commercialization timelines and the competitive landscape for cultivated meat.

A deep dive into the funding for alternative protein production also reveals a shift in investor priorities to focus on scale, bankability and proven demand over ambitious early-stage science.

As cultivated meat continues to find its place in the alt protein sector, plant-based meat appears to be losing its footing as sales and volumes continue slide. But as Ataman notes, reports of the segment’s demise are premature. Although, she points out, recalibration around pricing, manufacturing efficiency and foodservice distribution may be essential to its long-term viability.

Farther down the supply chain, technological advancements are helping – and hindering – brands’ and retailers’ ability to connect with consumers. Correspondent Timothy Inklebarger reveals how AI is changing the way consumers discover and buy food – and the subsequent marketing ramifications for brands and retailers.

To help brands and retailers navigate these changes, a new set of players is emerging. Among them is Algolia, which promises more precise pricing, personalization and promotion with its AI-powered Intelligent Grocery Solution. Another early mover in the space is Aera Technology, which offers some of the biggest names in the business – including Hershey, Mars and Kraft Heinz – a way to reinforce supply chains and identify disruptions before they cascade with help from AI. While both offer streamlined solutions, they also raise questions about data integration and competitive differentiation.

Check out the details of these stories and more by clicking through on the headlines below, or if you are a FoodNavigator-USA subscriber, by checking your inbox for the special edition on food-tech solutions for a more sustainable and secure food system.

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Food-tech solutions for a more sustainable and secure food system

Retailers and brands turn to AI for help as grocery shoppers feel financially squeezed – With 73% of US shoppers stressed about grocery costs, retailers are turning to tools like Algolia’s Intelligent Grocery Solution to balance affordability, margins and evolving consumer behavior

Why CPGs need to design for AI discovery now – As OpenAI, Perplexity, and Google push deeper into agentic commerce, IBM and McKinsey say CPG brands must restructure product data and APIs to stay visible

Hershey deploys AI agents to solve supply chain disruptions before they happen – The chocolate giant’s AI partner, Aera Technology, has also implemented its decision intelligence tools at food and beverage manufacturers like Mars, Kraft Heinz and Unilever

Where countries stand on cultivated meat regulation in 2026 – A global regulatory snapshot of cultivated meat, explaining who is moving first, why approvals vary by country and what comes next for the category

Alternative protein funding diverges as investors prioritize scale and bankability – Investors favor scalable operations and bankable contracts as funding tightens across fermentation, cultivated and plant-based proteins

Plant-based meat isn’t dead, but it is in a reset – Plant-based meat faces a slowdown as price, foodservice strategy and manufacturing innovation shape the next phase for the sector