2025 has been a landmark year for the food and beverage industry. Some of the most relevant news that took place this year included the gradual elimination of artificial colorants, SNAP restrictions on “junk” food, and tariffs on imported food and beverages.
Mintel’s “US Food Retail Market Report 2025” states that the U.S. food retail market, valued at over $900 billion in 2025, has grown significantly since 2019, with an anticipated increase of more than 4% for 2025.
Historically, growth has been driven by price sensitivity, with consumers switching to private brands and online shopping. Economic factors like tariffs and inflation have influenced buying behaviors, leading to bulk purchases and price comparison.
Abasto Media interviewed industry leaders to get their perspectives on the most significant changes of the year.
BILL MAYO, CEO AT SAVE A LOT
The Great Challenge and Mega Opportunity in Food Industry
Customers are still challenged economically and continue to look for ways to make the most with every dollar they have to spend. It’s more important than ever to ensure we offer the combination of value and quality that allows them to put delicious, nutritious and affordable food on the table every week. As customers become more receptive to trying private label brands, we have an opportunity to win them over with our 50+ award-winning private brands. In 2025, we’ve added more than 150 new private label items to our assortment and continue to refine our offering to deliver the foods our customers want most.
News That Affected the Hispanic Market
Like many consumers across the country, the Hispanic market has had to navigate continued price pressures in the grocery aisles. We think Save A Lot’s combination of great everyday value and an assortment that resonates with our Hispanic customers can help deliver what they need within their budget. Reaching across communities to build loyalty within the Hispanic community by serving their unique, localized needs is an important part of our growth strategy.
Related Article: 2025: Private Label and Advanced Technology
DANTE L. GALEAZZI, PRESIDENT OF THE TEXAS INTERNATIONAL PRODUCE ASSOCIATION
The Great Challenge and Mega Opportunity in Food Industry
Looking at 2025, the biggest challenge for our members has been the incredible amount of changes and uncertainty around trade. The continual changes have generated a tremendous amount of confusion and costs in North American supply chains. Members have had to adjust quickly, learning to comply with the changing landscape daily while explaining the impacts to buyers yet trying to maintain a profit… while still balancing the full-time job of running a produce company.
I would also consider water scarcity as a huge challenge facing the industry. The US, Mexico and even Canada reported significant levels of drought across large parts of the country, especially areas with production agriculture. It is clear that North America has a water availability issue, and our countries need to come together and invest in that infrastructure now otherwise conditions will continue to deteriorate .
The biggest opportunity is the chance to be a part of MAHA’s conversation around how the next generation in this country defines “healthy.” The fresh produce industry saw fruit and vegetable consumption rise during COVID, and then suffer as inflation reduced some of those increases and pushed consumers away from fruits and vegetables. MAHA has a chance to make fresh produce a real part of the health conversation, and not just in government but all parts of American life. Our industry needs to be very active on MAHA today and ensure fruits and vegetables are a significant part of the MAHA agenda (fruits and vegetables are an alarmingly small part of that conversation right now).
News That Affected the Hispanic Market
The regulation that had the greatest impact on the regional industry would have to be the withdrawal of the Tomato Suspension Agreement. Tomato importers are now responsible for paying a 17% duty on tomatoes coming from Mexico, which uses an incredible amount of capital these companies need for daily operations.
Industry-wise, we’re moving out of the summer months. That means domestic volumes of tomatoes will decrease, and we’ll be in the space in which the first of the Mexican producers will have decided whether to continue forward with tomatoes or to stop. As November and December approach, the industry will see how impactful the withdrawal has been to the tomato sector.
For Hispanic clients, this could be a real game changer in both availability and pricing. Like Mediterranean cultures, many Hispanic cultures make use of fresh tomatoes in their cuisine. It will be a test of the marketplace to see if price increases do come, will it change the purchasing patterns of those consumers? Will consumers trade-down to a different tomato variety, or will they trade-out tomatoes altogether? Is this yet another straw on the camels’ back in pushing consumers out of the produce section?
DAVID CUTLER, VICE PRESIDENT OF MEDIA RELATIONS AND PUBLIC AFFAIRS AT THE NATIONAL GROCERS ASSOCIATION (NGA)
The Great Challenge and Mega Opportunity in Food Industry
The grocery industry faced one of its most unpredictable years in 2025. Constantly shifting market dynamics, driven by global trade and supply uncertainties, evolving consumer habits, and continued consolidation in the supermarket industry, created real pressure on independent operators. For local and family-owned grocers, adapting to these external forces required both innovation and a resilient approach. At the same time, these challenges created new opportunities for independent retailers to do what they do best: connect personally with their communities.
Consumers have become increasingly focused on value and wellness, providing grocers with a unique opportunity to strengthen their relationships with customers by offering affordable, high-quality, and fresh options, with an emphasis on service and local sourcing, compared to their big-box store competitors.
Policy conversations in Washington, D.C., and around the nation regarding the health and wellness of American communities have also led independent retailers to rethink how they promote healthy choices in their stores. Many found creative ways to highlight nutritious products, make fresh produce more visible, and engage shoppers in conversations about healthy eating.
News That Affected the Hispanic Market
One of the most impactful regulatory developments in 2025 was the proposed delay of refrigerant regulations that would have cost upwards of $1 million per store to implement and become compliant before the 2026 deadline! For many independent and Hispanic-owned grocers, the Environmental Protection Agency’s proposal, if approved, will provide much-needed time to plan and budget for equipment upgrades without jeopardizing their operations.
At the same time, NGA continued to support programs that help retailers meet both policy goals and community needs through its Foundation. A prime example is the GusNIP program, also known as Double Up Food Bucks, which provides SNAP recipients with additional funds to purchase fresh produce at participating grocery stores. This initiative has been significant for Hispanic retailers, whose stores often serve as critical access points for fresh and culturally relevant foods in low-income neighborhoods. The NGA Foundation’s Technical Assistance Center, amongst many things, assists independent grocers in providing their communities with this service.
These developments underscored a central theme in 2025: flexibility and partnership are essential for the future of food retail. As policymakers and industry leaders continue shaping the path forward, NGA remains dedicated to ensuring that independent grocers of every size and in every community have the tools, resources, and fair regulatory environment they need to thrive and continue serving America’s families.